A company that specializes in finding institutional investors that are willing and able to invest in a private equity fund or company issuing securities. Sometimes the "issuer" will hire a placement agent so the fund partners can focus on management issues rather than on raising capital. In the U.S., these companies are regulated by the NASD and SEC.

A placement agent is an intermediary who raises capital for investment funds. A placement agent can range in size from a one-person independent firm to a large division of a global investment bank. Professional placement agents are required to be registered with the securities regulatory agency in their jurisdiction, such as the US Securities and Exchange Commission. A placement agent operating in the US must be registered as a broker or dealer.

A placement agent serves a vital function in the fundraising market. Placement agents are hired by investment funds (e.g., private equity fund, hedge fund, real estate fund, or other alternative assets) to raise capital quickly and efficiently, which they achieve by introducing the fund managers to qualified investors.

The capabilities of experienced placement agents, however, go well beyond mere introductions. Some placement agents provide value-added services, such as preparing marketing material, formulating a targeting strategy, organizing roadshows, and even negotiating on behalf of the fund. These services may be particularly useful for new fund managers.

Placement agents are especially helpful for marketing a fund in places where the fund manager has limited contacts as an introduction from a reputed placement agent enhances the credibility of the manager. Alternative sources of capital, such as sovereign funds, and ultra-high net worth individuals in many emerging markets and far-flung areas around the world highlight the productive role of placement agents.