REO Capital - Reports Placement Agents Used By PE Funds in Market 2013

REO Capital - Reports Placement Agent Are Being Used by Funds in Market – 2013

There are currently over 1,900 private equity funds on the road seeking capital commitments in excess of $800bn. Almost 800 of these vehicles have completed at least one interim close and have raised a collective $166bn in capital towards their respective targets. 41% of the Funds currently on the road seeking capital have enlisted the help of a Placement Agent to assist in their fundraising!

This represents a slight decline on the 50% of vehicles that completed fundraising over the previous 12 months that used placement agents.

Of the private equity vehicles in market that predominantly focus investments across North America, 41% have employed a placement agent to help raise capital commitments. For Europe-focused funds, 42% are using a placement agent and for Asia and Rest of World-focused vehicles a total of 39% of funds have enlisted their services. By fund type, 58% of buyout funds in market have engaged the use of placement agents, compared to 38% of real estate funds, 36% of growth funds and 24% of venture capital vehicles.

Many of the Placement Agents representing a collective fundraising target of an aggregate $26 billion over promise and under deliver, thus over extending themselves!  Such as MVision Private Equity Advisers, which is taking on 14 funds, or Park Hill Group, which is already racking up Fees on 13 funds.  This is followed by Credit Suisse Fund Group. These Placement Agents will take on 20 to 100 Duplicating & Competing Capital Raises all targeting the same LP Investors yearly, locking each client into a 3-5 year contracts with costly legal fees to break those contracts if dissatisfied with their services!

REO Capital accomplishes our capital raising goals because of our personalized approach with our total commitment to Non-Competing Capital Raises, and only from funds that we believe will produce superior returns for our LP clients.  Our commitment to personalized services for our clients is unparalleled.  By focusing on a limited number of niche strategies allows us to provide each client with the highest level of client services to meet their fundraising goals. Additionally we invest “with” our GP clients and therefore our interests are truly aligned with both the GP's & LP's!

REO Capital only takes on less than 10, Non Competing Capital Raises per year. Compared to other Placement Agents that take on 20 to 100 Capital Raises per year. When you conduct over 20 capital raises annually, it's impossible to not end up with duplicating, and competing Capital Raises in which these funds are targeting the same LP Investors. 

Since we are a smaller firm that works on less than 10 Capital Raises per year we do not have the problem of competing capital raises. It’s human nature to assume that bigger is better, but "smaller is better" when it comes to getting personalized Non-Competing Capital Raising Services!

John Denes

CEO

REO Capital, LLC

Detroit, MI

London, England UK

www.reocapitalllc.com 

248-313-9966 

REO Capital - Capital Introduction Firm of the Year 2013 Award

Preqin is delighted to annouce that REO Capital has won the "2013 International Hedge Fund Award - US Consultancy Firm of the Year - Capital Raising"

We are pleased to announce the winners following the most successful voting period in AI Global history; with record votes cast by Preqin, Acquisition International Magazine subscribers and the international hedge fund community. Having counted the votes received, read the supporting documents and further examined your achievements throughout the course of 2011 and 2012 so far we are delighted to contact you with this regard.

 

We hope that you are as pleased as we are with this achievement and we hope this award goes some way to help you gain international recognition and further establish your position within the asset class. We are contacting all winners to arrange coverage within the 2013 award winners supplement which will be distributed to Acquisition International Magazine’s 53,000+ subscribers as well as Preqin’s subscriber base, consisting of 13,064 individuals that operate, advise and invest in hedge funds.

Frequently Asked Questions Who has voted? The voting forms have been sent out to over 103,064 individuals in total, 36,000 of which operate and advise in the asset class and 53,064 subscribers of Acquisition International Magazine, which offers a real mix of investor rich profiles including - VC's, private equity professionals, angel investors and family offices. 13,000 voting forms were also sent to the hedge fund contacts of our partner, Preqin. The votes could have come from clients you have worked with over the past year, perhaps a colleague of yours or even someone who's simply aware of your position in the market place. Please note the voting process is confidential, we will not be able to give you any specific details on who voted for you.

Because of our professional approach and proven track record in raising assets with both Private Equity firms and Hedge Funds, REO Capital has received the International Hedge Fund Award 2013  – “US Consultancy Firm of the Year – Capital Raising”!

REO Capital – is a smaller Capital Introduction firm, that provides personalized capital raises, our business model ensures that our client’s expectations are met throughout the capital raising process. Our ability to complete a capital raise in all market cycles requires a highly disciplined approach and total commitment to the success of our clients because we only accept less than 10 - non competing capital raises per year. Its human nature to think Bigger is Better, but it is not true when it comes to receiving personalized capital raising services.

REO Capital, LLC

John Denes

CEO

REO Capital, LLC

Detroit, MI USA

London, England, UK

REO Capital - Reports LP Investors Increase Private Equity Allocation in 2013 & 2014

Although just about half of the LPs in the study have had difficult conversations with GPs about performance, nearly two-thirds said private equity is performing better than other investments in their portfolio.

Good news for GPs on the fundraising trail: LPs are optimistic about private equity and are planning to increase their allocations to the asset class in the coming year 2014.

Nearly two-thirds of investors, interviewed for Duff & Phelps’ Alternative Investments Outlook 2013: Limited Partner Survey, said private equity is performing better than other investments in their portfolio. Approximately half of the respondents said private equity is beating their expectations.

The financial advisory and investment banking firm quizzed 100 LPs operating in Western Europe and North America. Two-thirds of them plan to reconsider their allocation to private equity in the next 12 months, 95 percent of which plan to increase their allocation.

“I expect a private equity investment boom is on the cards. We have already identified many funds in the US and Europe for new investments,” one US pension fund official said in the study. 

Nevertheless, 48 percent admitted they have had difficult conversations with LPs about fund performance, with many LPs expecting returns on 2012 investment vintages to fall below levels achieved in the past. 

In fact, 91 percent of respondents said they have been more vocal about fund investment strategies in the past 12 months. When allocating capital, transparency was named as a key concern by 70 percent of LPs. This transparency concerns with LP Investors is also evident in Funds with their Expenses, LP Investors are becoming more concerned about those higher Success Fees expenses paid to Placement Agents!

Within Western Europe, the Germanic countries were the most popular with investors. The economic environment, political uncertainty and price expectations remained the biggest concerns for LPs investing in the region. In addition, European investors were more optimistic about Southern Europe than their North American counterparts, the study showed. 72 percent of European LPs said they would be likely to invest in funds with exposure to Southern Europe, compared to only 40 percent of North American investors.

“Countries like Greece, Spain and Italy are very unsafe for private equity investments and we are not considering any investment,” a vice president at a US pension fund said in the study.

But it is not just American LPs that remain wary about Southern Europe. Francesco Di Valmarana, a partner at Pantheon Ventures, expressed similar concerns in a recent interview with PEI. 

John Denes

CEO

REO Capital, LLC

Detroit, MI USA

London England UK

www.reocapitalllc dot com

johndenes at reocapitalllc.com

248-313-9966