A step-by-step guide to the private equity fundraising process
A typical placement agent engagement follows a structured process designed to maximize LP coverage and optimize fundraising outcomes. While timelines vary, most fund raises take 12-18 months from initial engagement to final close.
The agent evaluates your fund strategy, track record, and market positioning. Together, you define target LP segments, geographic focus, and realistic fundraising timelines.
Weeks 1-4Creation or refinement of the pitch deck, private placement memorandum (PPM), DDQ responses, and other marketing materials. The agent provides market feedback on positioning and messaging.
Weeks 4-8The agent identifies and prioritizes potential LPs based on allocation appetite, investment history, and fit with your strategy. Initial outreach begins with warm introductions and materials distribution.
Weeks 8-12Coordinated investor meetings across key markets. The agent manages scheduling, logistics, and follow-up. Multiple rounds of meetings typically occur over 3-6 months.
Months 3-9As LPs progress through their evaluation process, the agent coordinates due diligence requests, reference calls, and follow-up materials. This phase often determines the pace of commitments.
Months 6-12Final negotiation of terms, side letters, and subscription documents. The agent helps navigate LP-specific requirements and coordinates multiple closings to reach fund targets.
Months 10-18Timeline Reality: First-time managers should expect 15-24 months for a full fundraise. Established managers with strong track records may close in 9-12 months. Market conditions significantly impact timing.
Successful fundraises typically share several characteristics:
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