THE GUIDE TOFUND PLACEMENTSPECIALISTSFOURTH EDITION

An essential companion and directory forraising alternative investment funds

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Published in February 2012 byPEISecond FloorSycamore HouseSycamore StreetLondon EC1Y 0SGUnited Kingdom

Telephone: +44 (0)20 7566 5444www.peimedia.com

© 2012 PEI

ISBN 978-1-908783-03-5

This publication is not included in the CLA License so you must not copy any portionof it without the permission of the publisher.

All rights reserved. No parts of this publication may be reproduced, stored in a retrievalsystem or transmitted in any form or by anymeans including electronic, mechanical, pho-tocopy, recording or otherwise, without written permission of the publisher.

Disclaimer: This publication contains general information only and the contributors arenot, by means of this publication, rendering accounting, business, financial, investment,legal, tax, or other professional advice or services. This publication is not a substitute forsuch professional advice or services, nor should it be used as a basis for any decision oraction that may affect your business. Beforemaking any decision or taking any action thatmay affect your business, you should consult a qualified professional adviser. Neither thecontributors, their firms, its affiliates, nor related entities shall be responsible for any losssustained by any person who relies on this publication.

The views and opinions expressed in the book are solely those of the authors and neednot reflect those of their employing institutions.

Although every reasonable effort has been made to ensure the accuracy of this publi-cation, the publisher accepts no responsibility for any errors or omissions within thispublication or for any expense or other loss alleged to have arisen in any way in con-nection with a reader’s use of this publication.

PEI editor: Helen LewerProduction editor: Julie Foster

Printed in the UK by: Hobbs the Printers (www.hobbs.uk.com)

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Contents

Fund placement specialists: Index of companies listed in thisextensive, global directory vii

Introduction ix

SECTION I: IN-DEPTH CHAPTERS 11 A strong, safe pair of hands 3

By Mounir Guen, MVision Private Equity Advisers2011 – what a year 3The outlook for 2012 4

2 Navigating troubled waters 7By Bruce Chapman, ThreadmarkThe Tempest returns? 7How severe a storm? 8Ingredients for success 8Optimising prospects in a challenging environment 10Seeking an alternate path 12Conclusion 13

3 Placement agents in an age of uncertainty 15By Hussein Khalifa, MVision Private Equity AdvisersThe efficiency of third-party fundraisers 15Placement agents: the many shapes and sizes 17Ingredients of a good agent 19

4 Placement agents: A Darwinian tale 21By Christophe G. de Taurines, Capital & Marketing GroupIntroduction 21What is a placement agent? 21How do placement agents work? 22A tougher fundraising market 22Lower revenues 23Increased regulation 23Considerations for a placement agent to address 24The changing dynamics of real estate fundraising 25What should the placement agent do to ensure survival? 27Conclusion 28

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5 Asia and the current fundraising environment 29By David Arasnath Kimis, First AvenueIntroduction 29Common trends among Asian investors 29Fundraising environments in key Asian countries 30Conclusion 36

6 What to expect from a placement agent 37By Kelly DePonte, Probitas PartnersThe roles placement agents play 37Split mandates, top-offs and restarts 40Types of agents 40Regulation and disclosure 41‘Friends and family’ fundraisings 41The role of secondaries in the fundraising process 42Fee for services and alignment of interests 42Maturation of the market: the rise of internal IR professionals 43Who is the client? 44Summary 44

7 The Ten Rs of choosing and hiring a placement agent 45By John Barber, BridgepointReach 46Relationships 46Record 47Rigour 48Rapport 48Regulation 49Responsiveness 49Restraint 50Robustness 51Remuneration 51

8 Placement agents – terms of engagement 53Cindy Valentine and Liz Judd, SJ Berwin LLPIntroduction 53Parties 53Scope of services 53Exclusivity 54Key-man provisions 54Representations, warranties and undertakings:impact of pay-to-play legislation 54

Fees and expenses 55Sunset clause 56Expenses 56Term and termination 57

Contents

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Indemnity 57Confidentiality and announcements 57Conclusion 58

9 Presenting the proposition: Planning andexecuting the fundraising 59By Janet K. Brooks and Bart J. Molloy, Monument GroupPlanning and preparation pay off 60Executing the plan 63Approaching the closing 66After the closing 66Final thoughts 66

SECTION II: FROM THE PRIVATE EQUITY INTERNATIONAL ARCHIVES 69Triago exec to launch own firm 71By Hsiang-Ching Tseng, Privateequityinternational.com

In the market 73By Privateequityasia.com

Fundraising, the universe and everything 75By Robin Marriott, Perenews.com

Where’s my placement agent gone? 79By Privateequityinternational.com

NY moves for permanent placement agent ban 81By Jenna Gottlieb, Privateequityinternational.com

FEATURE: Real estate sentinels 83By Zoe Hughes, Perenews.com

Cuomo’s pay-to-play saga comes full circle 89By Privateequitymanager.com

CalPERS to run placement fee audits 91By Graham Winfrey, Privateequityinternational.com

Courting California 93By Jenna Gottlieb, Privateequityinternational.com

California placement agent bill becomes law 97By Jenna Gottlieb, Privateequityinternational.com

SEC approves ban on unregistered placement agents 99By Christopher Witkowsky, Privateequityasia

Contents

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SECTION III: THE SURVEYS 101

Among the most revealing barometers of attitudes towards fundplacement specialists, Private Equity International’s LP and GP sur-veys (2011/12) present a detailed analysis of how placement agentsare perceived by alternative asset class investors and fund managersand what role they are likely to play in fundraising in the years ahead

Introduction 103

LP survey 2012 105

GP survey 2012 113

SECTION IV: THE DIRECTORY 121

Private Equity International’s definitive directory of who’s who in theworld of fund placement across the alternative asset classes

About PEI 182

Contents

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Fund placement specialists:Index of companies listed in this extensive,global directory

3CF 123 Citi Alternative Investments 138

Acanthus Advisers 123 CMI/Capital Market Investment 139

Almeida Capital 124 Cogent Alternative Strategies 139

Alternative Investment Source 124 Continental Capital Partners 140

Ariane Capital Partners 125 Credit Suisse Private Placement 140

Atlantic Bridge 125 Cue Capital 141

Atlantic-Pacific Capital 126 Cygnus Capital 141

Augmentum Advisors 126 De Luna Partners 142

AXON Partners 127 Denning and Company 142

Beacon Hill Financial 127 Diamond Edge Capital Partners 143

Benedetto Gartland & Company 128 Eastdil Secured 143

Bentley Associates 128 Eaton Partners 144

BerchWood Partners 129 ECMG 144

Bernard Feshbach 129 ELK Capital Advisors 145

Blue Sand Securities 130 Far Hills Group 145

Boomerang Capital 130 Farragut Capital 146

Boyd & Co 131 Farrell Marsh & Co. 146

Bridge 1 Advisors 131 First American Fund Services 147

Bridgewater James 132 First Avenue 147

Brittany Capital Group 132 Fitzgibbon Toigo Associates 148

Butler Capital Investments 133 Foreside Fund Services 148

Camelback Group 133 Fortress Group 149

Campbell Lutyens 134 Forum Capital Partners 149

Candela Capital 134 Gladstone Securities 150

Capital & Marketing Group 135 Global Private Equity 150

Capital Alliance Partners 135 Gold Bridge Capital 151

Capitalvest 136 Greenhill & Co 151

Capstone Partners 136 Griffin Financial Group 152

Carver Cross Securities 137 Guggenheim Private Fund Group 152

Champlain Advisors 137 Hamilton Miller Investments 153

Chatsworth Securities LLC 138 Harken Capital Advisers LLC 153

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Fund placement specialists: Index of companies listed in this extensive, global directory

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Harvest Group Securities 154 Principle Advisory Services 168

HFF Securities 154 Probitas Partners 168

Hudson Partners Group 155 Quince Hill Partners 169

International Private Equity Limited 155 Rivarche Capital 169

JP Greene & Associates 156 Rock Lake Associates 170

JT Partners 156 Rowe Capital Partners 170

Klitzberg Associates 157 Sixpoint Partners 171

Knight Capital Partners 157 Somerset Capital 171

Konomi 158 Source Capital Group 172

Lancea Partners 158 Stable Capital Advisors 172

Lazard Private Fund Advisory Group 159 Stanwich Advisors 173

Liability Solutions 159 StoneGate Partners 173

M3 Capital Partners 160 Thomas Capital Group 174

Macquarie Capital Advisors 160 Threadmark 174

Magog & Cie 161 Touchstone Capital 175

Mallory Capital Group 161 Touchstone Group 175

Mediobanca 162 Trailhead Capital 176

Mercury Capital Advisors 162 Transparent Capital 176

MNB Nick Beteiligungen GmbH 163 Triago 177

Monument Group 163 Trinity Group 177

Morgan Stanley Global FinancialSponsors Group

164 Troy Investment Associates 178

UBS Investment Bank Private FundsGroup

178MRAG Projekt GmbH & Co KG 164

MVision Private Equity Advisers 165 Venture Advisers 179

Nelcap Advisors 165 Veritage Group 179

Neuberger Berman 166 Whitman and Co. 180

North Bridge Capital 166 William Blair Funds Placement Group 180

Park Hill Group 167 XT Capital 181

Prevail Capital 167 Young America Capital 181

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Introduction

Welcome to the fourth edition of The Guide to Fund Placement Specialists – a uniquehandbook for fundraisers and investors active in alternative asset classes. Against thebackdrop of the Global Financial Crisis, a challenging fundraising environment and achanging regulatory landscape, this publication looks at the impact on placementagents and the general partners (GP) and limited partners (LP) that use their services.It tackles the key questions and concerns for 2012: what factors make a good place-ment agent; what is the key to a successful fundraise; how is the role of the agentchanging; has the pay-to-play scandal in the US had a negative impact on how GPs andLPs perceive agents?

In Section I, a series of in-depth chapters offer incisive commentary from leadingnames in placement agent and fundraising circles on the value agents bring to the cap-ital-raising process and how their role is likely to evolve in 2012 and beyond. In theopening chapter, Mounir Guen of MVision Private Equity Advisers suggests that GPswith the support of a good agent are likely to fare better in a climate where investorsare becoming more discerning and demanding. Bruce Chapman of Threadmark offersan expert view of the essential qualities investors are seeking in their fund managers in2012 and suggests useful tips for achieving a successful fundraising.

The different types of placement agents available and how each one serves contrast-ing client needs is the subject of the chapter by Hussein Khalifa of MVision PrivateEquity Advisers. He also addresses the rise of the in-house investor relations expertand considers whether they really are a threat to the survival of the traditional place-ment agent model. Christophe de Taurines of Capital & Marketing Group writes aboutthe Darwinian forces that challenge the survival of placement agents with a specificfocus on the private equity real estate market, and outlines how agents can change andadapt their businesses in order to survive and remain competitive.

In a brand new chapter for this edition, David Arasnath Kimis of First Avenue examinesfundraising opportunities and trends in Asia, and presents an informed outlook abouthow active investors in different Asian countries are likely to allocate to alternativeinvestment funds in the near term. This chapter is vital for anyone thinking aboutfundraising in this increasingly important region.

Kelly DePonte of Probitas Partners looks at the various roles placement agents can playin the fundraising process and what LPs and GPs can expect from an agent, all againstthe backdrop of the rise of the in-house investor relations professional and the chang-ing regulatory landscape. DePonte also discusses how sophisticated pricing regimesare replacing standard compensation structures as the market matures. John Barber ofBridgepoint offers invaluable insight into how to choose and hire a placement agent

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and details the ‘Ten Rs’ that clients should consider – ranging from relationships, torobustness and to remuneration. In each case, he lists practical questions that shouldbe asked, or at least considered, when assessing a placement agent.

Anyone unsure what a contractual agreement with a placement agent should look likemust read the chapter written by Cindy Valentine and Liz Judd of SJ Berwin LLP. It setsout clearly the important terms and conditions you’ll come across and, crucially, thenew legal terms that have arisen out of the US pay-to-play scandals. Further detailingthe process-services clients can expect to receive from their placement agents, JanetK. Brooks and Bart J. Molloy of Monument Group explain how to plan and to executean effective fundraising process. They explain that some of the most successful place-ment agents not only play meticulously detailed roles in the early stages and actualfundraising stages, but they also commit to providing valuable service even when afund has been closed.

Section II of the book delves into the Private Equity International archives to presentinsightful news and analysis stories written by our team of dedicated journalists track-ing trends in the placement agent business and fundraising between 2010 and 2011.

In Section III, the findings of two extensive surveys, conducted in November 2011,reveal what GPs and LPs really think about placement agents, how often or whetherthey use them, if they plan to use their services for future fundraises, and how much, ifat all, the pay-for-play scandal in the US is likely to shape whether fund managers andinvestors will be happy to make use of placement agent services.

Section IV provides a comprehensive Who’s Who directory of over 115 placementagents operating worldwide in private equity, infrastructure, hedge funds, and privateequity real estate. While a placement agent’s inclusion in the directory of this edition isnot meant to substitute the need for a client’s own due diligence of a prospectiveagent, PEI has permitted entry in the directory to those full-service placement agentsthat perform a broad range of professional services for clients and investors.

We at PEI hope you find this guide to be of practical use to your business whether yourrole is as an investor, a fundraiser, a placement agent or other interested participant. nn

Helen LewerPEI

Introduction

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