January 19, 2023
What a placement agent can do for GPs
Private market fund managers are expected to brace for a tough year ahead, amid a flurry of unfavorable conditions ranging from rising interest rates to the freeze in the IPO market. In addition, big declines in public market valuations left many institutional portfolios overallocated to private market investments. Limited partners grappling with the so-called “denominator effect” had to stop pouring money into new commitments and offload stakes in private funds on the secondary market.
Facing these challenges, some general partners—particularly first-time and emerging managers, as well as GPs looking to raise capital from other geographies—might find help from a placement agent, who can assist them in navigating the harsher fundraising environment by offering services such as finding the right institutional investors and preparing marketing and due diligence documents.
Our latest analyst note explains the role that placement agents play in the fundraising process and how their guidance can help level the playing field between established managers and firms raising first-time funds.
|What are placement agents?||2|
|Why might a GP work with a placement agent?||4|
|Why might a GP not work with a placement agent?||6|