Independent sponsors are playing a bigger role in lower middle-market deals, says Richard Baum, managing partner of Consumer Growth Partners.

Unlike a private equity firm, which raises a fund prior to doing deals, Baum is part of the growing camp of buyers that pursue capital after agreeing to be a part of a transaction. New York and Kansas City-based Consumer Growth signs an exclusivity agreement, and then hustles to find the capital necessary to close a deal by reaching out to backers.

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