How to make money legally by raising capital for GPs
I teach you how to become a private placement agent step by step by sharing my experience.
If you want to make money legally by helping GP raise capital, you should become a registered representation with a broker-deal firm. If not, you can only be a finder. Let me tell you step by step how to become a placement agent so you can start earning as soon as possible.
If you google “how to become a private placement agent”, Here is the answer,
Education: An undergraduate degree in economics or a related field
Professional experience: Some experience in finance
Registration: Registration with the U.S. Securities and Exchange Commission (SEC) as a broker or dealer
State and local registration: Registration or licensing with relevant state and local authorities
Exams: Passing the Series 82 exam and the SIE exam to obtain Private Securities Offerings registration
Work background: A track record of building connections in the private equity sector
Industry knowledge: Staying up to date on trends, strategies, and developments in private equity
In my experience, I spend a lot of time studying for the exam because I need to pass the security license exam, Series 82 exam, and state exam Series 63. I can take SIE and Series 63 before the BD firm hires me. The Series 82 exam requires a BD firm to register you at the Finra database first and then schedule the exam for you.
I also recommend people reach out to GPs you had a relationship with in the past and tell them you plan to become a placement agent. So when they launch the next fund, and they need someone to help them raise, they can think about you. It is very important because you need a mandate ( client) here to hire you and engage with you; more importantly, they are willing to pay you after you are done onboarding with a BD firm.
BD dealer platforms like Stonehaven, Tangent capital partners etc are good for placement agent who want to stay independent. They built infrastructure to support you so you can focus on capital raising.
In conclusion, If you seriously want to become a private placement agent, Pass the SIE and Series 63 exam asap, at the same time, Maintain a good relationship with the BD platform and GPs. At the end, you want to make it a win-win-win situation for everyone.