Ask A Question  | Learn more about None

How do foreign funds effectively reach out to placement agents?

We are a Chinese fund and we have a $150 million deal in the healthcare industry. We need to find a placement agent in the U.S. What are your recommendations for finding a suitable one?

  • Sumihiro Investments, LLC
    July 31, 2018

    Research, research and research. I have many clients who think due diligence on a placement agent can be done via email or a phone call with no money spent. There are certainly first-level reviews that can be done, but to do serious due diligence, court records, background checks, prior clients, etc., all have to be researched. $150 million is too much to invest without spending money on due diligence. I have been involved in due diligence around the world and it's surprising how many scams and less-than-reputable placement agents are promoting themselves.

  • Farazad Investments
    August 01, 2018

    It is all subject to the sector and, most importantly, the requirements you need from the placement agent. Make sure you conduct a due diligence and the capability for them to raise the necessary capital. I always prefer smaller firms, as they will give you a tailor-made solution to your requirements, rather than the bigger investment banks.

  • Greenberg Traurig, LLP
    August 12, 2018

    If you don't know any, your U.S. professionals can usually make some good recommendations for placement agents. That size deal sounds on the small side, after appropriate debt levels, so it would require a second or third tier firm, I would think.