“Placement Agent – Finders”
The basic role of a Placement Agent or Finder is to raise capital for the General Partners of Private Equity Funds, Venture Capital Funds, and Hedge Funds as expeditiously as possible. How that role is executed, however varies greatly from one Placement Agent to another. In addition, the fundraising market is changing as Private Equity becomes a more accepted asset class.
All Placement Agents introduce fund managers to investors and get paid a fee for that introduction. People believe that the sole function an a Placement Agent is to be a glorified Rolodex of Investors. The least sophisticated agents, with minimal market knowledge and weak contacts are probably just that. The best firms, such as REO Capital have vast inter-active distribution channels with Institutional Investors such as RIA firms, Wealth Management firms, Sovereign Wealth Funds, Investment Consultants, Pension Consultants, Fund of Funds, Family Offices, Multi-Family Offices, Foundations, Insurance Companies, Corporate Pensions, & Endowments, they cover. Fund Managers hire Placement Agents or Finders to make the fundraising process more efficient
REO Capital has a vast unique rolodex, and we also act as a travel agent. Private Equity & Venture Capital 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 with the first meeting 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 Salt Lake City, Bismarck, Boston, Chicago, Detroit, or St Louis.
REO Capital is a Placement Agent firm that can help Emerging Managers of Private Equity Funds, Venture Capital Funds, and Hedge Funds seeking $100 Million to $500 Million in new capital by making the right Introductions. REO Capital and John Denes is experienced with over 25 years of experience to assist your fundraising needs globally. Larger Placement Agents do not work with the smaller funds and Emerging Managers with less than a 5 year track record, but REO Capital can help. Larger Placement Agents are not better than boutique firms like ours for Emerging Managers! Large Institutional LP Investors are not a fit for the Emerging Manager, but our unique introductions with our institutions are the solution to your problem.
REO Capital – Is a cost effective way to outsource the benefits of a Business Development Team while controlling costs, such as Healthcare, Social Security, Unemployment Benefits, Employee Salary Costs, Other Benefits, Federal & State Taxes, Recruiting Costs, Training and the cost of hiring internal staff adds up to 3x the cost of a salary for each employee!