Patrick Petit: Placement agents in demand

A tougher fundraising environment has increased the need for placement agents, who will turn down mandates they consider too challenging in the current environment, says the CEO of Paris-based Global Private Equity.

How will the global financial crisis affect fundraising over the next 12 months?

Patrick Petit, president and chief executive of placement and adivsory firm Global Private Equity, said:

“With much slower distributions and some GPs now being overweight in private equity as a result of the stock markets slump, we expect fundraising to take significantly longer. Placement agents are extremely solicited and, more than ever before, have to be very selective. They will turn down a number of funds which they consider too hard and/or too long to raise. Within this context, even the best mid-market, secondary and distressed funds – so far relatively unscathed – will have their fundraising affected.”

Petit shared his view as part of the upcoming Fundraising Compendium in sister magazine Private Equity International.