Placement Agent/PE Fundraising

Authored by: Certified Private Equity Professional - CEOCertified Private Equity Pro

projectfinmonkey

Monkey

Thanks m_1! Looking forward to hearing earthwalker7's insights

Private Equity Managing Director Pay

earthwalker7

Mentor

The Pro

Most Helpful

1) What sort of behavioural/technical questions should I be prepared for?

Placement is quite light on technicals. But you should familiarize yourself / already know the concepts behind:
- IRR - MOIC - DPIs

track record
team
look for a "secret sauce"
evaluate how likely their previous success is to be repeatable

3) What sort of modelling do they do? I read that they perform financial modelling on portfolio companies - could someone possibly elaborate on that please?

Probably not much modeling. Maybe calculating valuations based on public comps, less a discount for private-public, and a liquidity discount. So gather a bunch of comps on a company, discount 30% for public co premium, discount 15% for liquidity.

4)Finally, what the most interesting exciting part of the work?

You get to meet interesting funds, and interesting fund platform founders, and help them tell their story and raise money. You get to learn about what makes each one different. I don't like the work so much, but maybe you will.

Authored by: Certified Private Equity Professional - Executive DirectorCertified Private Equity Pro

earthwalker7

Mentor

The Pro

More importantly you should be able to discuss the fundraising process, and why you want to be a part of it, why you love private markets, etc. You need to know what differentiates the way each type of LP looks at an investment - be they pension fund, endowment, family office, etc. That's what will win you the role

Authored by: Certified Private Equity Professional - Executive DirectorCertified Private Equity Pro

projectfinmonkey

Monkey

Thanks a lot - that's so helpful! I am doing some reading to understand the fundraising process a bit more

You probably already guessed my next question - what aspects of the job do you not enjoy that much if you don't mind me asking?

You need to know what differentiates the way each type of LP looks at an investment - be they pension fund, endowment, family office, etc.

Would that be in terms of their investment strategy and risk appetite? Do you have a link to/example PPM I can look at to get a better understanding of what goes into it? Haven't been able to find any good ones online.

Do you spend more time building your relationship/understanding the GPs or LPs?

And finally, what is the career path/exit ops? Do people go to funds of funds later on?

Thanks again for doing this!

FalconPluse

Senior Baboon

1) just be yourself, they won't expect you to know much about the role.

2) more just be methodical in your thought process of a fund. e.g. the funds loss ratio, the team, sector, large-cap vs middle-market

3) close to none, you are thinking of secondary advisory here.

4) client interaction and thinking how best to market a fund relative to others.

Authored by: Certified Investment Banking Professional - 1st Year AssociateCertified Investment Banking Pro

Salmouche-La Mouche

Chimp

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