How much do placement agents typically charge?
Raising a fund where GP is putting in 5% of the total capital. Raising $15M in total equity. However, we've gotten the following fees back from placement agents:
- $10k a month fixed fee, plus 3% of any raise
- $20k fixed fee (one-time) plus 5% of any raise
Is it common to see a fixed fee? I understand theres likely to be some upfront marketing costs, etc as well. Whats also concerning is that the agents are claiming success rate is still less than 25%.
3% is market on equity slice. Speaking to the fixed fee, I haven’t encountered this but it doesn’t seem unreasonable.
Yes, fixed fee/retainer is common. The success fees will vary by the size of the fund and $15M is small. On $100M+ raise it should be closer to 2%.
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