In this paper we provide first evidence that activities of placement agents are justified. Using two proprietary limited partner datasets that contain data on 902 private equity funds raised in the period 1990-2011, we find that general partners hire placement agents to provide funding of...

In this paper, we provide original evidence on the economic role of placement agents as the financial intermediaries between general and limited partners in private equity. Our research is based on 902 private equity funds raised over the period of 1990 to 2011. This data shows that general...