"Best Capital Raising Award"
A Niche Firm
The basic role of a Capital Raising Firm is obvious – to raise capital for its fund manager clients as expeditiously as possible. How that role is executed, however, varies greatly from agent to agent and can also vary by client. In addition, the fundraising market is changing dramatically as private equity becomes a more established asset class and as it comes under stress in the current economic environment.
All Capital Raising Firms introduce fund managers to investors. People believe that the sole function of an agent is to be, a glorified Rolodex of investors. The least sophisticated agents, with minimal market knowledge and stale or weak contacts, are probably just that. The best firms, however, have a vast inter-active distribution channels with institutional investors as well as different sectors, investment processes and private equity allocations they cover. Fund managers hire placement agents to make the fundraising process more efficient.
REO Capital has a Vast Unique Rolodex, we also act as a travel agent. Private Equity fund sales are not driven simply by receiving a Private Placement Memorandum. Most institutional investors want to meet in person with senior managers of the general partners and the first meeting is usually held in their offices. Given the importance of these meetings, fundraising results in extensive travel, often to locations that are off-the-beaten path such as Bismarck, Salt Lake City, or Boston, Chicago, Detroit or St. Louis.