Boutique Placement agent?

Hey everyone, I'm in need of some advice, and I thought this would be a good place to turn to.

I've received an offer from a boutique placement agent (They have won multiple mandates (>10bn fund) from the top dog recently).

My background is in a large institution newly created arm, but the project turns sour 

I fear this move will jeopardize my future (Given that the placement agent is relatively new and unknown, and none of the employees seems to have a solid background). I want to continue my career in LP Fund Investment or Fundraising.

Comp is not my biggest concern, although it's relatively low.

Any suggestions on this?

 

Depends who it is. the spectrum of boutique quality for PA’s is all over the place. If it’s Campbell Lutyens, Rede, or Eaton it’s probably a solid gig, though less familiar with Eaton’s recent history. Feel free to DM me I started my career at a small boutique PA and have interviewed with a good chunk of them before starting my current seat.

 

There are dozens of placement agents. Some small boutiques actually perform really well. That said, early on in your career I would stick with a bigger brand.

Also, winning mandates vs. successfully executing them are two completely different stories. This is the hardest fundraising environment of the last decade so I would be thoughtful about this move. If you want to stay in fundraising (at least on the sales side) being at a name brand firm where people take your calls is especially helpful early on. I’ve raised capital in boutique and megafund settings and both have their issues/challenges. The benefit of the megafund (or name brand PA) is that people will at least give you the time of day.

 

Make sense, however, given the team I am working for will be ceased to exist.
However, I have no actual transaction experience in the current role and have no chance of getting into PCA/ Investment banking given the current job market...
Do you mind me sending you a dm?

 

I mean, it kind of is the exit opportunity. People have finally realized that management fees are king and capital formation seats are being more coveted / respected. That said, it is highly firm dependent. Look at most successful alts managers and you’ll usually see at least one co-founder coming from a fundraising background, the most obvious one being Rubenstein who was not only the fundraising but also the face of the firm for many years. Let’s ignore the sad state Carlyle finds themselves in today.

 
Most Helpful

No need to rush into a desperation play. At some point, how jumpy you appear on your resume will come back to bite you. As one of the other posters said, if it's Campbell Lutyens or Rede, you'll be fine. Eaton is absolute shit now following the Stifel acquisition (almost all of the decent senior guys have since peaced out after their earnouts expired) and other names like Atlantic-Pacific, First Avenue, Mercury, Probitas, etc. are all middling versions of their former selves. Credit Suisse no longer exists and UBS is a big question mark at this point. Lazard has always been up and down with terrible culture. The newer startups like Lincoln International, William Blair, Aviditi have yet to prove themselves and all looking shaky. Houlihan Lokey is just a couple older than the batch I just mentioned and they've already had a good amount of turnover with 0 success on the secondaries side. MVision has imploded for the 8th time. PJT is still good in PE, RE, HF but terrible at Infra, which they've only recently tried to break into. Asante (a MVision spinout) continues to hang on and is still a good shop in my opinion. Sixpoint (first bought by PNC and now Harris Williams) has always been crap. Evercore continues to be top of the leaderboard and will continue to be for some time. Moelis was originally started by Greenhill leftovers and has never been good, despite all of their overhiring efforts. On that note, the Greenhill reboot started ~2020 has now scattered into the wind...laying off a good third of their team since then. Monument continues to hang out up in Boston, being very selective with their mandates. Briarcliffe has gotten really lucky by riding the private credit wave but their team is definitey on the weaker side. There's other names like Stanwich, Capstone, BerchWood, M2O, Acalyx but not really worth your efforts.

In Middle East and APAC, the regional agents are essentially all in fake-it-till-you-make-it mode. Greenstone in Middle East is a complete scam. They used to be good more than a decade ago and are just coasting on the name at this point. MPW is well respected but super selective in their mandates. In Asia, Finex is composed of a ragtag crew of ex-fund admin, accountant and random service providers. No one one really knows what they're doing and the head guy is shady af. Thrive Alternatives is a spinout from Eaton APAC. They do know what they're doing but that's part of the rub--at the moment they're trying to push all of their clients to a "best-in-class" fancy tech CRM they've built that's essentially just a glitzed-out way to steal LP information and contacts. None of the other local agents are really reputable unfortunately. The issue in these more far flung locales is that anyone who's any good at an agent would immediately get scooped up in-house given the dearth of respectable fundraising and capital formation talent out there. 

I might be missing some names but this is more or less the placement agent landscape. 

Oh and if the firm you're speaking to is Spartan Advisors, absolutely do not take it. It's a sham of a firm, let alone placement agent. Their main guy is nothing but a hustler who claims to have "led a coup" on the Citi PFG back in 2019 when the Citi PFG shuttered back in 2012. 

 

The poster Ravena above provides a fairly concise summary of factors that can help differentiate good IR folks from the bad. In addition, I'd simply add that a good fundraising professional knows the in-and-outs of the LP's internal commitment approval process better than the LPs themselves: you know the levels of approval, can finesse the internal politics, highlight points in their portfolio that require complementation, supplementation or replacement, you can thoughtfully and tactfully educate them on the market, including competitors, latest macro stress points, etc. so that in the end you can help them do their job better. As soon as you do that, you're that much closer to a fund commitment from the LP. Why wouldn't they be interested in your fund after you've essentially written their entire internal IC memo?

Beyond these, I would note that the capital raisers that stand out are the ones able to efficiently and effectively manage a fundraising process from end-to-end, which I know sounds easy but is ultimately what differentiates good IR teams from bad ones. Understanding the importance of smooth and seamless follow up, backchanneling, leverage of senior investment teams' strengths, time, and where they can best contribute to the fundraising efforts. Working with the GC to negotiate fund terms and sticking points. Playing nice and being incredibly user-friendly to the finance, legal, investment teams, all of whom you'll need to liaise and work closely with throughout the fundraising process to get the target investor across the finish line. IR isn't hard. You just have to be the adult in the room that helps to run shit in the background and foreground to get the dollars through the door. And like Ravena noted, it's about persistence and selling through the 'no's' until you've worn out every possible alternative. 

IR is an often overlooked and underestimated function. But what's funny is that I often look at the investment side and think: 'man. what makes one investor better than the other?' To me, investment (at least in alternatives) has become nothing more than gambling as of late. KKR and BX had the benefit of being first movers in a nascent space 30, 40 years ago. Nowadays (as it was in the past), the number of good deals in this world is finite. But the number of competitors increases every year, month, to even week. Random spinouts from famed and not-so-famed shops, all fighting for the same deals. Everyone claims to have 'proprietary sourcing' and key relationships but that's all fake now right? I know that at least in fundraising, I can help deliver an end result with every incremental effort. In investing, I just see it as calculated (and hopefully educated) gambling, where oftentimes you don't even know if you've invested in a good company until 3-5 years later. And that's all fine--and exactly why I'd much rather be the enabler with seemingly more control over my fate and my work product than a gambler. But I'm sure every investor will tell you they know exactly what they're doing and that IR is just all fluff. 

This all said, to your point, there's essentially zero barrier to entry to working as an IR/fundraising professional, but I can bet that you have a harder time finding quality, reputable fundraisers compared to finding high-quality investors. Placement agents have always been a training ground for IR professionals but there's still not enough talent out there to fill the need. Most IR professionals are still vastly undertrained and in this increasingly tough fundraising environment, GPs should be more keen than ever to hire capable IR talent. 

 

Thank you for providing the PFG/placement agent landscape. This is very helpful! Also curious to hear your opinion on in-house IR roles at top Tech PE (Thoma/Vista/SLP) vs top EB PFG (EVR/PJT Parkhill) at the Asso level.

Heard that the latter would be better for comp and client-facing roles to build an LP network before exiting to an in-house IR role at a more senior level, whereas in-house IR junior roles would be mostly administrative work and difficult for internal promotion due to seniors that are hired laterally. But I also been hearing that the PA industry is a dying industry with many PE firms now building IR teams and the quantity/quality of mandates decreasing significantly over the years. Currently weighing both options and interested to hear more from the experts.

 

I have a quick question. 

what do you think about Evercore Hong Kong as a placement agent role? 

I will have my interview with Evercore Hong Kong and I do know that Evercore in United States has been performing excellent, but I have no idea how they work in Hong Kong. (salary, reputation, deal flow etc..)
 

Would be really helpful if you give some color on this. 

 

Nihil facere vel voluptas unde. Itaque tempora dolore hic. Voluptas a est voluptate recusandae. Dolores adipisci nam debitis quia quia odio consequatur. Numquam ad vero doloremque sed eveniet sit.

Doloribus magni magnam pariatur. Corporis voluptatum et sunt culpa illum. Repudiandae architecto quam rerum recusandae est.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
kanon's picture
kanon
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”