Private Equity Placement Agent

What is a Private Equity Placement Agent?

Private equity firms need to gather a lot of capital to start a fund and placement agents play a very important role in the fundraising process. Private equity general partners will rely on placement agents as intermediaries to institutional investors.

A controversy centered around the use of placement agents to attract public pension fund investments--especially the New York Pension Fund. New York Attorney General Andrew Cuomo has accused private equity and hedge funds of participating in pay-to-play transactions with pension funds. Private equity firms have used placement agents to secure capital commitments for funds although the use of such middlemen may change as states consider adopting tougher regulation on placement agents. On the other hand, limited partners often use gatekeepers.


Tags: private equity placement agent, private equity placement agents, private equity fund placement agent, placement agent fees, buyout placement agent, venture capital placement

Link to This Resource: Private Equity Placement Agent

http://privateequityblogger.com/2007/06/private-equity-placement-agent.html