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,which is taking on 14 funds, or Park Hill Group, these Placement Agents are already racking up Fees in 2013! This is followed by Credit Suisse Fund Group. These Placement Agents will take on over 20 Capital Raises per year which end up with Duplicating & Competing Capital Raises all targeting the same LP Investors, locking each GP client into a 3-5 year contracts with costly legal fees to break those contracts if your 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 along “with” our GP clients by taking a part of our fees and invest with the GP’s thus our interests are truly aligned with both the GP's & LP's!

REO Capital, LLC only takes on less than Ten - Non Competing Capital Raises per year compared to some Placement Agents such as Park Hill Group or Atlantic Pacific Capital that take on anywhere from 20 to 100 Capital Raises per year. When a Placement Agent conduct over 20 capital raises per year, it's impossible to not end up with duplicating, and competing Capital Raises with all their PE funds 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 in our Capital Raising Industry "Smaller is Better" when it comes to getting personalized Non-Competing Capital Raising Services! This is why more PE Firms use REO Capital, LLC for their Capital Raises, shouldn’t you?

Contact Details:

John Denes
CEO
REO Capital, LLC
Detroit, MI USA
London, England UK
Hong Kong, CN
http://www.reocapitalllc.com/
248-313-9966