Private Equity Placement Agent
Private Equity Fundraising, Private Equity Fund Placement
Private Equity Placement Agent
Private Equity Fundraising, Private Equity Fund Placement
Our purpose is to leverage our local presence selectively to help top-performing fund managers expand their investors base and fundraise more efficiently.
Market coverage
We have developed an extensive global network of the most active Private Equity investors in Europe. We maintain close relationships with European pension funds, insurance companies, wealth managers, family offices and corporates.
We focus on a limited number of visible assignments and strive to maintain our granular and comprehensive market coverage.
Local presence
We think best-in-class fund managers should expand their investors base through placement agents known for their strong local presence. This is what our clients look after when they solicit us.
We possess the appropriate ground level market intelligence and operating flexibility to organise well-targeted and locally focused fundraising efforts and complement our clients' existing investors base.
We enable our clients to monitor and influence all aspects of their fundraising process through bespoke reporting and open discussion.
Preparation
Conduct thorough due diligence
Prepare placement documentation
Populate data room
Define appropriate reporting format
Pre-marketing
Position investment opportunity
Identify main market challenges
Define fundraising process
Marketing
Pre-qualify investors
Make introductions, organize meetings
Report investor feedback
Provide on-going market intelligence
Legal documentation
Identify best practices
Assist in negotiations with investors
Liaise with legal counsels
Enable prompt closing
Private Equity possesses both the highest performance dispersion and the highest performance persistence of all asset classes. This has implications for fundraising.
Performance dispersion and persistence
Private Equity continues to provide a larger return opportunity than traditional asset classes. It remains well placed to take advantage of market inefficiencies and of opportunities materialising ahead of public markets. Interest alignment is better organised than in publicly traded companies, and time horizon is more serene to implement rewarding long-term strategies.
However, Private Equity is illiquid and brings little diversification to an existing public equity exposure. But it possesses, of all asset classes, both the highest performance dispersion and the highest performance persistence. This in turn leads investors to pay attention to what makes Private Equity a unique asset class:
they use the asset class as a return enhancer, not a risk diversifier
they consider past performance as a reliable predictor of future performance and pay meticulous attention to quantitative issues
they have a bottom up approach.
Implications
The asset class's performance dispersion and performance persistence has implications. To fully integrate investors requirements, fund managers must document their track record and distribution capacity more acutely than in the past:
how much has been effectively distributed to date and how much is expected during the course of the fundraising?
how much financial and operational restructuring is required on unrealised portfolios?
to what extent can the fund manager keep executing its strategy and deliver corresponding performance in its next fund?