Guide · placement agent fees
Placement agent fees, from published sources
By Dan Keegan · Page updated
How private equity placement agent fees are calculated, when they are paid and who bears them.
Every point below links to its source, and we have left out fee ranges we could not source.
- Sourced to ILPA, Invest Europe, regulators
- No unsourced ranges
- Updated October 2026
01/ mechanics
How the fee works
Four parts of a typical placement fee arrangement, each from a published source.
WHAT IT IS CHARGED ON
A percentage of commitments the agent introduced
A law firm deskbook explains that the fee is typically calculated as a percentage of the capital commitments made by investors the agent introduced to the fund (Morgan Lewis, 2015).
THE ONE SOURCED FIGURE
Historical observation, not a current quote
The academic percentage below is a historical observation from a 2014 working paper, not a current UK fee benchmark or a quote for your fund.
Agree the fee base, excluded investors, retainer credit, payment timing and tail period in the actual placement agreement.
A 2014 working paper by Cain, McKeon and Davidoff Solomon states that placement agents earn “approximately 1% of the funds they direct from limited partners to the fund” (source).
Higher ranges are often quoted online, but we found no regulator, industry body or open academic source for them, so we do not repeat them.
WHEN IT IS PAID
Once per commitment, often after final close
For private equity and venture funds the fee is due once per investor commitment, unlike hedge funds, which may pay ongoing fees (Morgan Lewis, 2015).
The same source notes that managers often agree to pay the fee a reasonable period after the fund’s final close.
REPEAT INVESTORS
Lower rates on the next fund
Where an agent is paid on investors who re-up in a sequel fund, the fee rate is typically substantially lower (Morgan Lewis, 2015).
02/ who pays
Who bears the fee?
ILPA Principles 3.0 recommends that placement agent fees be borne by the manager, with a full management-fee offset where allocated to the fund.
It distinguishes fees from placement expenses.
This is investor guidance; actual obligations depend on applicable law and the fund and engagement documents.
→ Investors expect the manager to bear the fee, or a full management fee offset.
03/ rules
Disclosure and restrictions
Some investors and regulators set specific rules on placement fees.
Which sounds like you?
ILPA asks managers to disclose their economic arrangement with placement agents in due diligence materials, and its reporting template defines placement fees and the placement fee offset.
California’s AB 1743 bans placement agents from receiving fees contingent on CalPERS investing, and CalSTRS notes that California has required placement agents to register as lobbyists since 2011.
- → CalPERS fact sheet
- → CalSTRS disclosure filings
- → CalPERS reports placement agent fees monthly: disclosure item
New York prohibits investment managers from using placement agents or intermediaries for business with the Common Retirement Fund.
The SEC’s pay-to-play rule bars an adviser from paying a third party to solicit a government entity unless that party is a regulated person.
04/ negotiating
What to settle in the placement agreement
Points a manager usually agrees in writing with an agent.
We do not give fee levels: take advice on your own terms.
0 of 8 ready
05/ questions
Questions, answered
A 2014 historical academic source reports approximately 1% of the capital agents direct to the fund (Cain, McKeon and Davidoff Solomon, 2014).
Actual fees are negotiated case by case, and we found no regulator or industry body that publishes a standard range.
ILPA says placement agent fees should be borne by the fund manager, with a full management fee offset if they are charged to the fund (ILPA Principles 3.0).
For private equity and venture funds, once per investor commitment, often a reasonable period after final close (Morgan Lewis).
After scrutiny of placement agent payments, California restricted contingent fees and required lobbyist registration, and New York banned placement agents for its Common Retirement Fund.
See the CalPERS fact sheet and New York bill S4761 linked on this page.
See our unranked placement agent directory.
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06/ sources
Sources and further reading
Primary sources for the rules and figures on this page.