In the second of a two-part article, partner Joseph Zargari spoke with Private Equity Law Report about pressure points and potential outcomes when negotiating common terms of a placement agent agreement. When it comes to costs, Joe explained that the main way in which placement agent expenses are incurred is through legal and travel expenses, and that placement agents often require a retainer to start working—but that the latter is less common when it is presumed that the fund will be successful. “The retainer is a much more significant point for a broad offering that will require a lot of effort or for an inexperienced manager because there is a lower likelihood of success (i.e., the fund being fully subscribed and closing),” Joe said.