- Home
- Calculators
- Placement agent fee
Placement agent fee calculator
Enter the capital the agent raises, the success fee rate, any monthly retainer and expense cap. The calculator returns the total cost, the effective rate on the money raised and your net proceeds.
Company rounds
Total cost of the agent
$1,075,000
- Success fee
- $1,000,000
- Retainers paid
- $135,000
- Effective rate on capital raised
- 2.15%
- Net proceeds
- $48,925,000
Planning estimate from the figures you enter. Not investment, tax or legal advice.
How it is calculated
- Success fee = capital raised x fee rate.
- Retainers = monthly retainer x months.
- If retainers are credited, fees = the larger of the two; if not, fees = success fee + retainers.
- Total = fees + expenses; effective rate = total / capital raised.
Worked example: $50 million raised at 2% with a credited retainer
| Success fee | $1,000,000 |
| Retainers (9 x $15,000) | $135,000, credited |
| Expenses | $75,000 |
| Total cost | $1,075,000 |
| Effective rate | 2.15% |
How agents are paid
Fund placement agents are commonly paid a percentage of the commitments they bring in, often around 1.5% to 2.5% for primary funds, sometimes with a retainer. Company private placements through a broker-dealer often carry higher rates plus warrants. Every engagement letter differs, so model the one in front of you.
Registration matters
In the United States, a person paid a success fee for selling securities generally has to be a registered broker-dealer. Paying an unregistered finder can create rescission risk for the offering. Ask the agent for its FINRA BrokerCheck record and have counsel review the letter.
Tail and scope
Check which investors count toward the fee (introduced only, or everyone), how long the tail period runs after the engagement ends and whether existing LPs are excluded. These terms move the real cost more than the headline rate.
Mistakes to avoid
- Paying a fee on existing LPs the agent did not introduce.
- Missing a long tail clause on a later fund.
- Using an unregistered finder for a success fee.
- Forgetting expenses and roadshow costs in the budget.
Questions and answers
What is a tail period?
A period after the engagement ends during which the agent still earns a fee on investors it introduced. Twelve to eighteen months is a common ask; it is negotiable.
Does the agent need data room access?
Usually yes, with its own group so you can see which investors it brings in and what they read.
Who pays the placement fee in a fund?
It depends on the fund documents. Many LPAs offset placement fees against the management fee so LPs do not bear them in full; read the fee offset clause.