I'm currently going through the interview process with a reputable placement agent and will be entering at the senior associate or VP level. I know what I'll be doing from a task perspective (diligence and documentation), but I'd like some guidance on the compensation piece. Although I'm not new to fundraising/IR - I'm new to the placement agent side and don't want to shortchange myself. Not exactly sure where to start and would love some insight. Thanks.
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Have worked at a placement agent before, and it really depends on which one you're interviewing, as the range can be pretty wide.
In terms of comp, the top houses are probably Evercore/Lazard/PJT Partners (Park Hill) - they pay in-line with their respective M&A guys, usually with marginally lower bonus %, but there have been years where the placement guys made more than the M&A guys at these EBs (depending on fee revenue). Thus, if you're interviewing at an EB, or a placement arm of a BB (UBS/Credit Suisse), you should be paid in-line with Senior Associates/VP in IBD (just look at the WSO database for guidance).
On the other hand, the independent placement agents are a mixed bag. As a whole they're probably significantly lower in terms of pay than the names I mentioned above, with some paying more than the others, especially if you're in a more junior position. However, arguably the Partners/MDs at these places could be making more than the BBs/EBs. It all depends.
Overall, not sure what your previous job is, but you will be well paid at a reputable placement agent, with relatively good hours vs. M&A.
This is super helpful- I’m looking to learn more about this space as well as I’m going through an interview process also - do you mind if I send you a private message?
Sure feel free to PM
Hello! I'm looking for the same info too. Do you know about Placement Agents' case studies? Thanks.
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.
Know you won't like this response but at the end of the day, it just depends.
I would say in general that it's best to start on the placement side and then pivot in-house. As with banking, consulting, law, etc., it's much better to start on the service provider side just to get the churn, exposure and reps. You'll be staffed on various types of fundraises across asset classes (PE, infra, RE, etc.) and sectors (consumer, healthcare, industrials) and really get a feel for what you like and prefer. Why join a VC fund forever when you can work on a VC fund for 12 months? Hours will typically be longer but you'll learn a lot more and have a much better feel for how to best structure, manage and pace a fundraise from end-to-end. When you're in-house, depending on whether the firm has multiple strategies or a single strategy, you could either be swamped or just chilling and leaving the office at 5pm. I would say you can make the move at the VP range and be a very capable #2 at a smaller GP. This is arguably better than you joining a larger Tech PE shop straight up because they'll typically have larger teams and silo their junior folks. Given these teams are larger, they'll naturally pigeonhole folks into project management/product specialist roles vs distribution/coverage roles. ...And they have no incentive to put you into coverage just because you want to build your LP network.
Thoma is led by JJ and is a flock of women who have taken credit for Thoma Bravo's fundraising success even though it's always been the Orlando show, buttressed by strong performance. Vista is still struggling after the tax evasion scandal but could be a good place to build your career long term. SLP literally pushed out their IR head and their entire team is still in rebuild mode. Shit happens in-house and you really have to be sure to underwrite the firm you're joining very carefully. Does the IR head have clout, do they have a seat at the table, does the firm even value fundraising or do they take a "I will build it and they will come" approach? (spoiler: LPs won't come. It's not 2013 or even 2019. Good IR profesionals will become increasingly valued as we move forward).
As for building an LP network, my two cents is that you should spend your first few years actually learning the business and how to properly fundraise. No reputable agent or in-house firm would (nor should they) allow you to cover LPs from the beginning. You know very little about the firm, its business approach, its deals and how to properly manage a fundraising campaign. Learn the mechanics first and then push to transiton to sales/coverage. It goes without saying that you sell a product much better once you understand it. There's going to be admin work on both sides (agent & in-house). That's just a part of the job. And when you're, say, head of IR at a small shop, you're both the IR Head and the IR analyst. Also a tip: if a firm is willing to hire you as "Head of IR" even though you only have say, 5-6 years of fundraising experience, then they're not a serious firm and certainly don't take fundraising seriously. That should send alarm bells off in your head. Go to a place where you're valued.
The PA industry is certainly struggling at the moment but this is as a result of unfettered growth over the last 10-15 years. A correction was long overdue. It's still the best place to get your training and to build the best connections. Most of the good ones can still be viewed as the mini-West Point of the fundraising world. When you're operating in-house, you're in a vacuum and you have no bechmark to actually assess how you're managing a fundraise. It could just be dumb luck or stellar track record (in which case, oftentimes you don't even need an IR team's support to raise a fund).
And as for comp, this varies as well but placement agent pay is pretty standardized. Won't vary much between good banks vs good boutiques. In-house will have a wider range though. Starting out lower because hours will be better and roles aren't as complex. But at Director level, you should expect carry. Good luck with your search! Hope this is helpful.
If you’re joining one of the banks (Lazard/Evercore etc) as a senior associate you’ll be making £110k a year. Most likely less at an independent placement agent
Assuming this is base?
At least in the U.S. the Lazard/Evercore base salaries are the same as M&A. Cannot speak to London, unfortunately.
PJT = largely in-line with M&A (from what I’ve been told)
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