Agent Wants Me To Pay For Editing And Illustrations?!

A literary agent wants to represent a children’s picture book that I have written. However, I am required to get it professionally edited at my expense plus have an illustrator draw up some sample pictures, also at my expense. They will provide me with an acceptable list of editors and illustrators. From there, the agency will try and place my work with a publisher.
Something doesn’t sound right here. It’s my understanding that a reputable agent shouldn’t charge a reading fee but what about a professional edit and sample illustrations?