Private equity investing is no longer reserved for firms with dedicated funds. Because fundraising for private equity firms has become a longer, more arduous process, many investment professionals have decided to focus on doing deals without the expense and time consumed by a dedicated fund. Working with and competing against independent sponsors is becoming more mainstream. “The independent sponsor model has gained credibility,” says Stephen Ellis, a founder of the Stratford-Cambridge Group, an independent sponsor firm. “Lenders are reaching out to me for meeting in a much more significant way than ever before. We are also seeing partners leave private equity firms to be independent. It’s a growing group, and everyone, including the investment banks, are recognizing it.” Here are four independent sponsors that have found success, completing transactions on a deal-by-deal basis.
Akoya Capital Partners, LLC