White Papers and Reports

The Rise of Emerging Managers in Canada: Challenges, Opportunities, and the Catalytic Role of EMB for Its Members

An interview with Charles Lemay of Emerging Managers Board (EMB), conducted by Stéphane Gagné of Multifonds

Stéphane (Multifonds): So Charles, let’s start with the big one. Why are emerging managers such a big deal for the Canadian asset management industry right now?

Charles (EMB): They’re absolutely essential to our ecosystem. And their contribution goes way beyond just adding more choice for investors. Here’s what they bring:

• Innovation – in how they invest and build portfolios.
• Real alignment of interests – most of these managers are founders who have a big chunk of their own wealth in their strategies, so they’re super close to their clients.
• Healthy competition – their presence pushes the big managers to stay sharp, and that lifts the whole market.
• More diversity – generational, cultural, and methodological. That enriches how portfolios are built, plain and simple.

Emerging managers are also answering new needs in the industry. They tend to innovate faster, especially with tech. Think automation, AI, unified reporting, cloud platforms – all that lets them build lean, efficient, resilient shops from scratch. No legacy systems holding them back. They get a technological blank page.

And with new products like ETFs and crypto assets, emerging managers can stand out by offering things that the big players adopt much more slowly.

Stéphane (Multifonds): Okay, that sounds great. But it can’t be all roses. What are the biggest headaches for emerging managers in Canada today?

Charles (EMB): Four main challenges, really.

1. Getting start-up capital – Landing that first institutional mandate is brutal. People look at the size, the short track record, the limited resources – and that often matters more than the actual talent or investment process. The real fight is surviving long enough to build a credible 2‑, 3‑, or 5‑year record and hit break‑even. Stopping the cash burn while your assets under management are still ramping up? That’s the hardest part. The key question is: how long is your runway?

2. Compliance and regulations – This is a huge hurdle. Early on, many have to outsource compliance, and registration costs just keep rising. These fixed costs hit before you’ve got any scale, so they squeeze an already tight runway. Emerging managers have to follow provincial and national rules, set up strong controls, protect data, keep perfect records. For a small shop, that’s a heavy financial and organizational load.

3. Marketing and visibility – Getting your name out there in a concentrated market takes time, discipline, networking, and a lot of communication. Plenty of great managers stay under the radar simply because they can’t get onto the right institutional platforms.

4. Finding and keeping talent – Sure, a small firm is flexible. But competition for good people is still fierce.

Stéphane (Multifonds): Got it. So what’s the upside? Where do you see real opportunities for them today?

Charles (EMB): Two big ones.

First: investors want specialization. Allocators are asking for more transparency, targeted niche strategies, and operational agility. Emerging managers fit that perfectly.

Second: alternative and tech‑driven strategies are on the rise. Canada is a great place for private equity, thematic investing, advanced quant strategies, using AI in portfolio management, and even digital assets and tokenization. Emerging managers can build their whole model around innovation from day one – no internal resistance, no legacy systems to fight against.

Stéphane (Multifonds): And what makes Canada itself so special for them? Why here, not somewhere else?

Charles (EMB): Four things.

1. Strong institutional culture – Our pension funds and banks are world‑class. Their sophistication has created an environment that breeds innovation. But there’s a flip side. The system has become pretty oligopolistic – a few big players hoover up talent with huge pay. That means smaller and emerging managers often get pushed aside. Why bother with a $25 million mandate when you’re focused on deploying $250 million or more?

2. A diversified economy – We’ve got a mature financial sector and a thriving tech scene (AI, fintech, data science).

3. Regulatory openness – Even though Canada is highly regulated, our regulators have been flexible on fund structures, ESG rules, next‑gen ETFs, and regulated crypto assets. That helps the Canadian market perform well in turbulent times.

4. A collaborative culture – More and more industry players are working together to build solutions for the Canadian market. Look at Québec’s QEMP – that’s a great model, and we’re actively trying to replicate it in other provinces. Big pension funds might want to deploy $250 million, but through emerging manager programs, they can spread that across 8 to 10 smaller firms. That way they get scale, and the next generation of managers gets a real boost.

Stéphane (Multifonds): So where does EMB fit into all this? What’s your role?

Charles (EMB): Our mission is simple: structure, connect, promote.

• Structure – We provide operational tools, specialized training, best practices, and access to the right service providers.
• Connect – We run investor meetings, roundtables, targeted events, and encourage collaboration among managers.
• Promote – We advocate on emerging managers’ behalf – with investors, policymakers, and the media.

Stéphane (Multifonds): And what kind of impact can an association like yours actually have on the Canadian ecosystem?

Charles (EMB): A healthy emerging‑manager ecosystem means more innovation, more resilience, better economic diversity, and stronger global competitiveness. EMB acts as an accelerator – we give emerging managers the tools and visibility they need to fully contribute to Canada’s financial sector.

Stéphane (Multifonds): Last question – could this Canadian model work in other countries?

Charles (EMB): Absolutely. The next step is scaling it across North America, starting in the second half of 2026. Impact has to stay local to be global – and geography really matters for cost‑conscious entrepreneurs. So a North American footprint is the natural first move. Over time, the same logic applies to Europe. Dedicated local chapters for emerging managers would make just as much sense there.

Canada’s success comes from our collaborative culture, strong institutions, constructive ties between regulators and industry, and a framework that supports innovation. Other countries could copy this by setting up similar local associations, mentorship programs, specialized seed funds, and regular high‑value events. And the EMB would be happy to help any association that wants to replicate our model.

Stéphane (Multifonds): Any final thought for our readers?

Charles (EMB): Emerging managers are redefining asset management – in Canada and globally. They’re like small and mid‑sized businesses in the wider economy: the backbone of sustainable growth. Their agility, creativity, and ability to quickly adopt tech and regulatory innovation make them essential drivers of progress.

With EMB’s mobilizing role, we’re helping to build a new generation of managers – fueling local innovation while making the Canadian market more competitive worldwide. Supporting these entrepreneurs isn’t optional. It’s foundational. It’s how we foster innovation, create jobs, and grow the next wave of talent that will shape the future of asset management.

Connect with the author

Charles Lemay | LinkedIn

Charles joined Walter Global Asset Management as a Partner in 2021. A committed advocate for the emerging manager community in North America, he brings a complementary blend of entrepreneurial, strategic, and business development experience to support the growth of Walter GAM’s portfolio partners. Prior to being an entrepreneur in asset management he worked for Goldman Sachs in NYC between 2006-2014.

Last updated in Aug 2026.