Mastering the Art of Outsourcing: Addendum Q&A with Park Madison Partners
INTRODUCTION
As the capital raising landscape continues to evolve, institutional Investors are placing greater scrutiny on who they support, how they allocate and what differentiates one Manager from another. For real estate Investment Managers, whether emerging or well-established, partnering with a Placement Agent can be a powerful accelerant to growth. With Investor selectivity at an all-time high and fundraising dynamics shifting, approaching these partnerships with clarity, readiness and strategic intent is more important than ever.
In the following Q&A, Park Madison Partners offers candid, practical guidance on navigating that first meeting with a Placement Agent. From best practices in preparation and positioning to insights into what Investors are seeking in 2025, this conversation provides Investment Managers with a grounded view of how to make Placement Agent relationships count.
Alliance Global Advisors thanks Nancy Lashine and John Sweeney of Park Madison Partners for providing valuable insights on this topic in an exclusive Q&A session.
Q&A WITH PARK MADISON PARTNERS – A DEEPER DIVE INTO PLACEMENT AGENTS
Q&A: First-Time Meeting with a Placement Agent:
Q: For an Emerging Manager launching its first fund, what are some key considerations to be aware of when approaching a Placement Agent?
A: For Emerging Managers seeking to launch a first fund, our advice is to be open-minded and receptive to feedback. Launching a first-time fund is exceedingly difficult, particularly in today’s capital markets environment. A good Placement Agent should be providing advice not only on the feasibility of raising a closed-end fund but also on potential alternative capital solutions that may have a higher likelihood of success.
Q: For an Established Manager seeking a Placement Agent, what are some of the key considerations regarding their strategy for attracting a Placement Agent?
A: We work with both Emerging and Established Managers and have found success in both. One of the primary challenges of working with an Established Manager is understanding the incremental value a Placement Agent can bring to the table. Established Managers tend to have a stable roster of existing Investors, and in many instances, they have been widely marketed and are well-known by the Investor community. A Placement Agent would want to understand past fundraising efforts and ultimately gain conviction that their own efforts would not be duplicative. From Park Madison’s standpoint, Manager transparency regarding future capital raising goals and any perceived challenges to reach them can help us determine whether we can be part of the solution.
Q: Which documents should a Manager have readily available for the first outreach and first formal meeting with a Placement Agent?
A: For the first meeting, the only document a Manager really needs is an overview presentation detailing the platform, team, strategy and track record. The track record piece is especially important, and Managers should ensure that their track record presentation is consistent with institutional standards and industry norms.
Q: How should Managers best prepare for a first meeting with a Placement Agent?
A: We generally advise Managers to approach the first meeting like a pitch to a prospective Investor. We are always looking at potential new mandates from an Investor’s perspective. What makes this strategy and Sponsor compelling? Would we invest our own capital? What are the key differentiators, and would other Investors find them interesting? That first meeting is a Manager’s opportunity to sell us on their story and strategy, and also to articulate why they believe a Placement Agent could be helpful at this stage of their growth.
Q: What common mistakes have you seen Managers make when initially approaching or meeting with a Placement Agent?
A: A common mistake we see is Managers having unrealistic expectations of timing. Managers will often approach us with the caveat that they want to go to market in 30 or 60 days, or they want us to jump in with less than 12 months to go before the final close. That just doesn’t work for us. From Park Madison’s perspective, we see ourselves as long-term partners with our clients. We accept new clients with the expectation that we will be working together on multiple assignments, serving as a strategic advisor and capital solutions provider as Managers seek to grow and expand their platforms. We need time to get to know each other before we can jump into a long-term relationship like that. We need to meet the full team, tour properties, check references and generally perform the same level of due diligence as a typical institutional Investor or Consultant. In parallel with that process, we will typically do a heavy overhaul on the marketing and investor due diligence materials, incorporating what we’ve learned throughout our due diligence to ensure Investors are seeing the same strengths, differentiators and investment merits that we see. All of this takes time. For Managers who think they might need a Placement Agent, our advice is to begin those dialogues far in advance.
Q: What tips do you have for Managers regarding following up after the first meeting? What is your typical timeline for reviewing a new fund offering?
A: Our typical due diligence timeline for a new fund offering is 6-8 weeks, but this varies widely based on the nature of the offering and the Manager’s readiness to go to market. However, we typically try to agree to the terms of the engagement much earlier in the process. If the initial meetings are positive and both parties appear interested in moving forward with a formal engagement, we usually try to have a term sheet signed within the first 2-4 weeks of due diligence.
Q&A: Placement Agent Market Viewpoints:
Q: What strategies/assignments are you looking for in today’s market?
A: We are always looking for best-in-class Managers across property types, execution strategies and vehicle structures. Our recent assignments have included data centers, industrial outdoor storage, distribution/logistics, cold storage, BTR, manufactured housing, multifamily and hotels. We’ve raised capital for closed-end funds, open-end funds, programmatic joint ventures, GP-led recapitalizations and continuation vehicles. For us, it’s about finding the right people who see Park Madison as a long-term advisor and partner in the growth of their platform.
Q: What are you hearing from Investors in terms of their appetite to make investments through new manager relationships in 2025? Is this the year when commitments begin to ramp up again?
A: We saw some positive momentum in early 2025 that suggested capital flows were likely to improve this year. We will see what impact tariffs have on that, but regardless, we think fundraising for traditional closed-end funds is likely to remain challenging. We do continue to see Investor appetite for closed-end funds and portfolio recapitalizations, particularly where the property type or strategy brings additional diversification to existing portfolios. However, institutional Investor portfolios are more mature; they are increasingly focused on re-upping with existing Managers, and the bar for adding new managers is high.
Q: Given the challenging capital raising environment of the past couple of years, what are some creative ways you’ve seen GPs provide an incentive to motivate Investors to invest today?
A: Given the tougher fundraising climate, we’ve seen portfolio recapitalizations and continuation vehicles gain traction as alternative private capital solutions outside of traditional closed-end funds. These GP-led secondaries can be highly effective tools for bringing in new institutional capital while also allowing sponsors to refresh business plans, reset GP economics and provide liquidity to existing Investors. In some cases, these recapitalizations are also structured as seeded joint ventures, where the initial recap is paired with a primary commitment for new investments. Park Madison has been increasingly active in advising on these types of transactions over the past several years.
CONCLUSION
Placement agents are playing a more strategic role than ever in helping Investment Managers refine their story, navigate complex market conditions and access aligned pools of institutional capital. As this Q&A reveals, success in working with a Placement Agent begins not with flashy materials or an aggressive timeline, but with transparency, thoughtful preparation and a long-term mindset. Whether you’re an Emerging Manager launching your first fund or an Established Manager evaluating your next capital strategy, the foundation of a productive Placement Agent relationship lies in shared conviction, realistic expectations and a mutual vision for growth.
As capital markets evolve and fundraising becomes increasingly competitive, navigating placement agent relationships strategically is more critical than ever. Those who are successful are flexible in their approach, and managers need to be prepared to adapt in today’s dynamic market environment. Alliance Global Advisors partners with Clients to assess whether a placement agent aligns with their long-term fundraising goals, provides guidance on structure and fees, and ensures an alignment of interests and objectives. We tailor our services to each Client’s unique strategy, empowering them to make informed decisions that position them for success. Interested in learning more? Let’s connect.
COMING SOON: MASTERING THE ART OF OUTSOURCING SERIES 3 – MARKETING SERVICES
Beyond organizational and property fund management services, real estate Investment Managers are increasingly turning to outsourced marketing operations to further optimize business practices and investment offerings. In Part Three of our Mastering the Art of Outsourcing Series, we’ll explore marketing and communications outsourcing for investment managers, including key considerations for PR, design, CRMs and other content providers. We’ll also share expert insights into what to consider when selecting outsourced partners, potential cost structures and how outsourcing can drive efficiency and scalability.
ABOUT ALLIANCE GLOBAL ADVISORS:
Alliance Global Advisors is a women-owned consulting firm focused on empowering the institutional investment community to elevate best practices. Advising clients with over $970 billion in assets under management, Alliance partners with organizations to provide an independent perspective and innovative approach to critical strategic initiatives. Our partnerships allow senior management teams to focus on what matters most: diligently managing client capital, creating value and delivering exceptional returns in a performance-driven market.