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Placement Agent Agreement Private Equity Fund Template for Hong Kong

A comprehensive agreement governed by Hong Kong law that establishes the terms and conditions under which a placement agent will market and distribute private equity fund interests to potential investors. The document addresses key aspects including regulatory compliance under Hong Kong's Securities and Futures Ordinance, scope of services, compensation structure, marketing restrictions, and obligations of both parties. It incorporates specific provisions for Hong Kong's regulatory environment, including SFC requirements and local marketing regulations.

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What is a Placement Agent Agreement Private Equity Fund?

The Placement Agent Agreement Private Equity Fund is a crucial document used when a private equity fund or its manager seeks to engage a professional placement agent to assist with fundraising activities in Hong Kong and potentially other jurisdictions. This agreement is particularly important in Hong Kong's sophisticated financial market, where regulatory compliance under the Securities and Futures Ordinance is paramount. The document typically covers essential elements such as placement agent services, regulatory requirements, fee structures, marketing territories, and investor targeting strategies. It includes specific provisions addressing Hong Kong's regulatory framework, including SFC licensing requirements, marketing restrictions, and data privacy obligations. The agreement is designed to protect both the fund's interests and the placement agent's rights while ensuring compliance with local regulations and market practices.

What sections should be included in a Placement Agent Agreement Private Equity Fund?

1. Parties: Identification of the contracting parties - typically the fund and/or fund manager and the placement agent

2. Background: Context of the agreement, brief description of the fund and purpose of engaging the placement agent

3. Definitions and Interpretation: Key terms used throughout the agreement, including regulatory terms specific to Hong Kong

4. Appointment and Scope of Services: Terms of appointment and detailed description of placement agent services

5. Regulatory Status and Compliance: Confirmation of regulatory status, licenses, and compliance obligations under Hong Kong law

6. Territory and Exclusivity: Geographical scope of the placement agent's activities and any exclusivity provisions

7. Fees and Expenses: Compensation structure, including placement fees, retainer if any, and expense reimbursement

8. Payment Terms: Timing and method of payment, including any escrow arrangements

9. Representations and Warranties: Standard and specific representations from both parties

10. Compliance with Laws: Obligations to comply with applicable laws, particularly Hong Kong securities regulations

11. Confidentiality: Protection of confidential information and trade secrets

12. Data Protection: Compliance with Hong Kong privacy laws and data protection measures

13. Term and Termination: Duration of agreement and termination provisions

14. Indemnification: Mutual indemnification provisions and liability limitations

15. General Provisions: Standard boilerplate clauses including governing law, notices, amendment procedures

What sections are optional to include in a Placement Agent Agreement Private Equity Fund?

1. Non-Circumvention: Used when there's a need to prevent direct approaches to introduced investors

2. Key Person Provisions: Include when specific individuals are crucial to service delivery

3. Sub-Placement Agents: Include if the placement agent may appoint sub-agents

4. Force Majeure: Include for longer-term agreements or in volatile markets

5. Non-Solicitation: Include to prevent poaching of employees/clients

6. Marketing Approval Process: Include when specific marketing material approval procedures are required

7. Investor Reporting: Include when placement agent has ongoing investor reporting obligations

What schedules should be included in a Placement Agent Agreement Private Equity Fund?

1. Schedule 1: Services Description: Detailed scope of placement agent services and responsibilities

2. Schedule 2: Fee Schedule: Detailed breakdown of fees, including calculations and examples

3. Schedule 3: Marketing Guidelines: Specific requirements for marketing materials and approach

4. Schedule 4: Target Investors: List of potential investors or investor types to be approached

5. Schedule 5: Compliance Requirements: Detailed regulatory compliance requirements specific to Hong Kong

6. Schedule 6: Form of Investor Reports: Template for investor reporting if required

7. Appendix A: Key Personnel: List of key personnel involved in providing services

8. Appendix B: Power of Attorney: If placement agent needs specific authority to act on fund's behalf

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Publisher

Ƶ

Cost

Free to use

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