I attended the iGlobal Forum Independent Sponsor event on October 26, 2016. It was an interesting day where we spent time discussing new opportunities and trends in sourcing deals, negotiating fee structures, and finding fund sources. I do a fair amount of business with several great independent sponsors and have summarized where the industry is and where I think it is going.
What is an independent sponsor and why are they relevant?
The independent sponsor business model combines the rigor of traditional private equity with deal-by-deal investments and economics. Many independent sponsors pitch that their model has stronger limited partner investor alignment on issues such as fees, carry, and discretion to review each investment opportunity when highlighting the attributes of their model.