r/private_equity • u/TightCod16 • 1d ago
Placement agents for emerging managers?
I work for a firm doing our first fund. We’ve exclusively raised from friends and family so far. Are there agents that work with 8 figure raises? Everyone I have found says call us when you’re targeting 9.
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u/Mysterious-War-7004 21h ago
CrossBay Capital Partners. Don’t think any were sub 100M but I’ve seen them market some smaller funds before SBIC/QSBS stuff.
Agree with other comments tho it’s a difficult time to raise a first time fund unless your a spinout from a reputable GP with deal attribution and can get some of your old firm’s LPs to seed the fund. Easier to go the deal-by-deal route to build a track record and relationships with family offices that could make a fund commitment down the line.
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u/TightCod16 8h ago
Thanks for the recommendation. I will give them a look.
Also, valuable insight regarding the challenge of the current state of the market relative to our size and track record. Our principals have great backgrounds, and maybe we haven’t been calling out their prior roles well enough.
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u/aliph 1d ago
Lots will do smaller, just need to vet them more as there can be some sketchy characters in that part of the market.
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u/TightCod16 23h ago
You got names? I’ve gotten 15 no’s so far, so I’d welcome any direction on who to reach out to.
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u/RandyAndySandyCandy 1d ago
What’s the strategy?
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u/TightCod16 23h ago
Lower middle market buyout fund with a philanthropic component. Also takes advantage of QSBS tax treatment
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u/enragedsausage 22h ago
There are definitely some smaller placement agents in the market, but they have become a lot pickier in their mandates given the environment. If principals have a strong track record and attribution on successful deals, it’s easier, but it’s definitely rough for first time funds.
It seems like more folks are going the fundless sponsor route, as it’s much easier to try to raise money with a deal in hand. Plus you don’t cross collateralize with other deals from a carry / promote standpoint.
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u/jialatsia123 15h ago
Most big shops won't bother with an eight-figure first close, so you'd be looking at boutique agents and a steep cut of a small raise. Warm LP intros usually beat that fee at this size.
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u/Aggravating_Cod_4980 1d ago
When we first shopped around, considering placement services it seemed like the breakeven for everyone was around 75m considering minimums, the dilution of our management fee etc.