Placement Agent

Definition:

An entity, usually an investment bank, that acts as an agent for a company to help structure and locate buyers in a Private Placement. The Placement Agent is usually compensated in fees relating to the amount of capital it raises for the company and does not usually purchase (or underwrite) the securities itself. In the United States, Placement Agents are regulated by the SEC’s Broker-Dealer rules under the Exchange Act, subject to certain exemptions (e.g., non-US agents having Chaperone Agreements with US-registered Broker-Dealers may undertake certain activities in respect of US investors).

Return to Glossary