Questions about Private Placement
Hey guys, first post on the site. I have been looking into private equity, DCM, etc. and found something called Private Placement. Did some more digging and learned about firms like Park Hill Group and divisions of banks that work as private placement firms, but I haven't been able to find much information on the day to day work of a private placement firm, how they win business, and what someone would do at the analyst or associate level.
Can some of my fellow monkeys enlighten me?
Placement agents either raise money for funds (PE/hedge funds) or they raise growth capital for private/public companies.
A company like Park Hill Group is a placement agent on the fund side. Therefore you are looking for and doing diligence on funds. On the sales side you would be calling on pension funds, insurance funds, endowments, and etc and trying to raise money for the funds you represent.
Exit opps is mostly funds of funds, endowments, and pension funds, However a good placement agent is very valuable and top guys can clear millions of dollars a year.
Can you outline briefly what / who it would take to clear millions a year? I work at a leading PA (think Lazard, UBS, CS, Evercore) and not sure any of our MDs clear that? Do you think one has to go and set up their own independent? Thanks
Thank you!
private placement (Originally Posted: 10/06/2010)
does an analyst in a private placement group pretty much have the same duties as someone at a normal investrment banking analyst position? how does the valuation and pitchbook presentations differ between private placement and regular ib analyst positions? please note that the private placement group is within a pretty good boutique investment banking firm.
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I work in the funds placement group - happy to answer any questions you might have.
Basically there is two sides:
Origination - deciding if you want to take on a mandate and raise capital. This is where we often conduct DD similar to an LP in the first instance, and look at cash flows, valuations, portfolio holdings ect
Marketing/raising - this is why we were hired. We help create marketing documents, pitchbooks, help organize roadshows. Our job as a firm is to know the investor universe and market these funds to LP's as noted above.
I enjoy the work quite a lot.
What is 'Private Placement'? (Originally Posted: 08/07/2009)
Is this related to IB, or is it more on the side of PE?
ausaplc, could you provide what one would expect to make coming is as an associate? salary + bonus? Thanks
This is a pretty straight forward item where if you type in PIPE or Private Placements in either the google, investopedia, or wikipedia search funtion you should be able to yield more then enough information.
PIPE and Private placement are 2 diff things. PIPE is for public cos. Private placement involves p/e or vc's buying a chunk of the co
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