“Placement Agent – Finders”
The basic role of a Placement Agent or Finder is capital raising 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 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. Fund Managers hire Private Placement Agents or Finders to make the fundraising process more efficient.
REO Capital also assists the GP’s with “Investor Relations” and their roadshows. It is important to have a continuing relationship with fund managers and investors to understand their long term goals. We are a core part of the capital raising function, and to be a source of information for investors and fund managers; and to be continually involved with our investors and fund managers, whether raising funds or not. 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 Bismarck, Boston, Cambridge, Detroit, St. Louis or Salt Lake City.
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 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 work on some 40 funds per year which ends up with duplicating and competing fundraising! 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 independent placement agent to emerging private investment managers worldwide. Based in Beverly Hills, California – REO Capital partners with established and emerging managers seeking to enhance their investor bases by raising institutional capital for Technology, Medical, Buyout, Growth Equity, Real Estate, Natural Resources, and other private investment strategies.
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!
Read our “About” page and our “Services” page for additional information on REO Capital.