REO Capital - A Capital Raising Firm for Emerging Managers
Online, August 1, 2012 (Newswire.com) - Based in Detroit, REO Capital, LLC is a retained Private Equity consulting firm and Alternative Investment capital raising firm. We provide Capital Raises, to established and emerging Long Only funds, Hedge Funds and Private Equity funds. We work with funds gobally who have at least a one year track record. We carefully select the projects we work on so that we can dedicate the proper time and resources neccessary to complete the capital raising.
Some private placement agents or third party marketers may take on 70 to 100 projects per year unable to allocate the needed resources to complete these projects. Third Party Marketing Firms typically charge a 20% Fee of both the management and performance fees received by the fund and a additional success fee fee of 2% to 10% of the capital raise from the General Partners. Our cost analysis found that on an average Capital Raise of $100 Million the Fund will pay a total cost of approximately $5.9 Million in Fees for the Third Party Marketer vs REO Capital, LLC a Capital Introduction Retained Firm's total costs of about $1.5 Million. Our average Retainer for 24 months is approximately $500,000 and we only charge a 1% Success Fee for a total fee of $1.5mm vs $5.9mm with the Third Party Marketer. Which would you rather pay $5.9 Million in Total Success Fees for a Third Party Marketer or $1.5 Million for the Retained Fee Capital Introduction Firm - REO Capital??? The answer is Simple - REO Capital is the Clear Choice! Third Party Marketers only work on the projects that pay the best. We are not a Private Placement Agent or a Third Party Marketer and we do not prioritize our projects like that.
REO Capital, LLC is a boutique Capital Introduction firm we work with managers that have a niche in their chosen strategy, that have a good past performance and who we believe have an offering that will be attractive to our clients. We will often work with the General Partners and the fund to also offer fund progress updates and consultation services throughout the life of the investment. The role of REO Capital, LLC is to Raise Capital and serve as a bridge between fund managers and potential institutional investors. REO capital, LLC can offer contact assistance, and comparative ratings of Private Equity Funds or Hedge Funds, performance, and competative fee structures for Emerging Managers of Hedge Funds, Private Equity Funds & Long Only Funds as well as General Partners/Fund Managers of more experienced Funds. REO Capital has designed New Fee Structures for Emerging Managers and Fund Managers with track records to help accomodate their capital raising needs and increase their AUM in their funds.
REO Capital has developed an innovative Refund Fee Structure for PE and Hedge Fund Managers where the Retainer Fees are refunded at the successful completion of the Capital Raise with more of a emphasis on a higher Success Fee.
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Tags: capital raising, hedge funds, Privater Equity