We should expect to see more independent sponsors emerge, existing sponsors investing in multiple transactions, and the broader private equity market continuing to embrace independent sponsors. Funding comes from the state . Grade. Each entity is a separate legal entity and solely responsible for its own acts and/or omissions. Selecting the right capital partner is critical for independent sponsors. Post transaction, we seek to be an active partner, providing board level support and if necessary, additional capital for further growth. Prospective capital partners are just getting to know them, and the independent sponsor doesnt yet have an established track record or credibility. Thanks to them we got great economics, did a number of add-ons with a great partner. Private debt funds have flexibility in their capital structures, with many able to pick up a sizable piece of the equity needs. They have gotten financing structures that no one else could even approach thus increasing our rates of return. Hestia Capital Highlights Recent Support from Two Leading Independent Partnership model - Merit seeks to be a true partner and is comfortable allowing the sponsor to lead both the transaction and management interaction. Farragut Capital Partners is a privately held investment firm offering subordinated debt and private equity capital to entrepreneurs, business owners, private equity firms, and independent sponsors. When we call with a deal, they pick up the phone. Private Equity Independent Sponsors | Capital Raising I Sourcing As a firm principally dedicated to investing in non-traditional buyouts and other leveraged transactions, we have the institutional expertise and flexibility to understand and structure a customized capital solution for independent sponsor deals. Center Stage with CohnReznick: Prodos Capital LLC. To discuss an opportunity or learn more about how Access Capital Partners helps independent sponsors, please contact Greg Tobben or visit Access Capital Partners. Many of the long-time and well-known independent sponsor capital providers often take advantage of their independent sponsor counterparts, particularly new sponsors or ones that arent running a tight capital raising process. It's a partnership we understand, appreciate, and are always open to exploring. Situations where your mezzanine lender has a limited appetite for equity capital inyour transaction. Team What We Do Our model supports an unwavering belief in our investment philosophy, the growth potential of our companies, and most importantly, the operators we back. The time consuming, emotional and thankless process of raising capital is taken off your shoulders. Independence Capital Partners was founded in 1997 to provide back office and infrastructure support to private equity and real estate fund managers. He knows what its like to be in your shoes. your closing fees, management fees, carried interest/promote). They are my go to shop for financing for my portfolio companies. The military's statement raised the likelihood of a renewed surge in the nearly weeklong violence that . How has the capital provider behaved? SBA Administrator Guzman Awards Minnesota's Abdirahman Kahin of the "Independent sponsor" is an expansive and evolving category that may be understood to cover any transaction in which a sponsor first sources, diligences, and negotiates the recapitalization or buyout of an acquisition target and then subsequently seeks financing partners to close the transaction. Based in the United States, with a preference for the Midwest and Central regions, EBITDA between $2 million and $20 million, Manufacturing, Distribution, Business Services, Industrial & Infrastructure Services. Drew, Bob and Elizabeth delivered exactly as promised. We invest a significant amount of capital out of our general partnership into every deal. Independence Capital Partners Our extensive experience with independent sponsor transactions has allowed us to develop a deep understanding of the issues that are most important to them, and how to productively collaborate to identify and execute the most efficient and effective approach to close a deal. You need to ask the right questions how many independent sponsor deals have they done? Successful investment candidates typically have the following characteristics: Minimum EBITDA of $3.0 million, a history of profitable operations and margins that meet or exceed industry averages; This may include including origination, carry, and annual management fees. Invaluable is a word that gets tossed around indiscriminately these days - Bob's guidance was truly invaluable in our case. If there is glue on a team, then Caroline is the Frisch glue. additional capital. Get to know Douglas Song, Alberto Garofalo, and Matthew Cohen as they share insights as members of the independent sponsor community. Colbeck sponsors its portfolio companies through consistent engagement with management teams in areas such as finance, capital markets and growth strategies, distinguishing itself from traditional lenders. Despite the economic challenges of the coronavirus pandemic, key takeaways from the summit were that independent sponsors have generally thrived during the pandemic, they continue to grow stronger as an alternative to traditional private equity firms, and the outlook for them in 2021 remains positive. Our team has the relevant experience to help businesses grow and navigate through varying economic cycles, Our commitment to building strong partnerships is at the core of our investment philosophy, Our flexible approach allows us to creatively structure solutions for a variety of investment opportunities, 2023 Kirtland Capital Partners | 200 Park Avenue | Suite 225 | Orange Village, Ohio 44122 Phone: 216-593-0100 | Fax: 216-593-0240. In this case, we use our extensive deal flow to identify opportunities well suited for the operator's background and expertise. Opportunities that warrant a more conservative capital structure without a significant amount of debt; Growth oriented investments that plan to use debt capacity in the future to fund add-on acquisitions;or. Bob and Drew were trusted business advisors on every aspect of the process. We've changed the way the. Nonprofit organizations that are interested in being considered for an invitation to apply . Leveraging the Independent Sponsor Model: Achieving Long - SlideShare But thats why as an Independent Sponsor, you need someone on your side that can help walk you through the deal from start to finish- from putting the deal structure together to finding potential capital partners and investors to helping you understand the nuances of the process to negotiating on your behalf so you get the best possible outcome. FCP has always believed that the Independent Sponsor client is as important as the deal itself. Examples of Capital Partners in a sentence. For any inquiries, please call or email us: Quadec Private Capital is an independent private capital firm pursuing investments in outstanding companies in the United States with EBITDA between $2 million and $20 million. Elizabeth operates at the cross-section of finance and psychology. We havepartnered with independent sponsors in three investments in our current fund: Arch Global Precision, Acme Cosmetic Componentsand EnviroScience. Here are 3 traits shared by great independent sponsor funding sources: The proposedindependent sponsor economics(transaction fee / promote, carried interest or ownership / ongoing management fee) are designed to reward the sponsor for the value delivered and to incentivize them to grow the business being acquired. Provide introductions to service providers and senior lenders. We work directly with companies, through intermediaries, in conjunction with fellow private equity and independent sponsors, and alongside operators. Experience and success with the independent sponsor economic model, Flexible capital with an equity focus and the ability, without the requirement, to invest in subordinated debt, Long-term, patient capital with no defined investment horizons, Capacity for significant follow-on investment, Partnership approach to investing in and managing portfolio companies, History of executing transactions quickly and efficiently, Longstanding and broad relationships with financing sources and service providers. Due to our success, we now have our own fund. In fact, approximately half of our over 100 platform investments have been in partnership with independent sponsors, both as a control and non-control investor, which we believe makes us one of the most active investors in such transactions in the private capital industry. What we offer to independent sponsors. Creating value. The independent sponsor comes to the table with intimate industry knowledge, a value creation mindset, and the ability to roll up their sleeves. After substantial vetting and comparative shopping FCP was selected as my critical partner. Sudan army demands rivals' surrender as cease-fire runs out While no two transactions are alike, historically, ACP clients have achieved above market deal fees, ongoing compensation, management fees and equity participation. Navigation. We look forward to working with Bob and Drew on future opportunities. Here are 6 guidelines to help you get the most out of the independent sponsor model: 1. Negotiating can be a difficult task. The ideal independent sponsor funding source embraces the independent sponsor model because they want to, not because they have to. Weve built an incredible network of capital providers that love working with Independent Sponsors. Most importantly, we were personally inspired by the gracious manner you brought to each discussion your presence elevated us in an impactful way and made us all better! 3. No other investment bank has specialized in helping Independent Sponsors raise capital as long as we have. Our financing process always aims to exceed market-based Independent Sponsor economics (ie. But what happens when situations arise and portfolio companies underperform, or the macroeconomic environment changes? At Capital Partners Insurance we strive to provide our customers with exceptional Insurance protection. Kirtland can support independent sponsor led transactions as the control-equity investor. Private equity and independent sponsors will become more collaborative, thereby leading to a win-win scenario for all stakeholders. While "independent sponsors" have been around for many years, the number of independent sponsors is at an all-time high and their credibility continues to climb. Ideal investment candidates will exhibit some combination of the following characteristics: Recurring revenue or repeat customer relationships, Management or owners interested in rolling over a meaningful equity stake to benefit from a second bite at the apple, Fragmented markets with opportunities for growth via acquisition, 2021 by Quadec Private Capital LLC - All Rights Reserved. After substantial vetting and comparative shopping FCP was selected as my critical partner. Top 200 H1B Job Titles. meet the team: Partners-Cap.com. Our great success with independent sponsors owes to the fact that we are uniquely qualified to evaluate, structure and close such deals. Learn more. Partners Capital - Wikipedia If you'd like to explore a career with Access Capital Partners, please contact us. To do so, we look for opportunities to pair our capital, industry expertise, and resources with strong management teams looking to take their businesses a step further. New State fully delivered on all aspects of the combined relationship between co-investors and the Sellers. His expertise is unmatched. Employer Name. In this latest Government Contractor Valuation tracker, we share key valuation indicators to help GovCon management teams and investors keep track of industry valuation benchmarks and trends. This online training will show you more about our Independent Sponsor model and how to prepare yourself to finally own a business of your own. Well find you partners that match up not only financially, but personally and address the specific dynamics of your deal as well. Lets face it, not every SBIC, family office or private equity fund really wants to invest with independent sponsors, but as the independent sponsor market has grown, it has become harder for private equity firms to ignore as a viable source of deal flow. , Associates of Access Capital Partners are registered representatives of, and securities transactions are conducted through, StillPoint Capital, LLC, MemberFINRAandSIPC, Tampa, FL. Through years of raising capital in all types of situations and environments, ACP has developed a nuanced approach to consistentlyand efficiently secure the capital to support independentsponsors' acquisitions and recapitalizations. Managed Services and Outsourced Accounting. We're growing andlooking for talented and driven individuals to join our team. Let us take the burden of raising capitaloff your shoulders, so you can focus on deal sourcing, building relationships with business ownersand growing existing portfolio companies. Independent Sponsor Spotlight: Wayne Moore of Crux Capital 4. Due to their infrastructure and resource constraints, independent sponsors essentially served as an extension of their sourcing efforts. Even if you find the capital, how do you know youve got the best economics? We look forward to working with Bob and Drew on future opportunities.
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