We understand the specific nuances involved with being an independent sponsor, including but not limited to equity roll-over, earnouts, compensation arrangements and break fees. We also understand all of the fundraising documents and can provide a holistic solution for all of a sponsor’s needs.
Independent sponsor transactions are an increasingly popular model for private equity professionals seeking flexibility and strategic partnerships. At Sadis, our legal team is deeply experienced in guiding independent sponsors through all stages of their deals, from structuring agreements to securing capital providers and ensuring compliance. Our expertise ensures our clients maximize value while navigating the complexities of independent sponsor transactions and structuring deals to align with investor expectations.
Deal-specific fundraising is a considerable force in the current M&A environment. The independent sponsor model provides benefits for both the independent sponsor and investors, making it an attractive option for both sides. Our lawyers have worked with independent sponsors and their capital providers for decades, and have been called on to share their expertise at numerous industry events.
Our practice provides a skill set that goes beyond the simple application of middle-market private equity knowledge. We are keenly attuned to the simultaneous workstreams and constituencies that independent sponsors need to manage and provide practical guidance and solutions to the issues that independent sponsors may encounter as they seek to minimize risks and realize business objectives.
We represent clients through pre-letter of intent planning through to and beyond closing. Our “sponsor” team’s experience includes structuring transactions, developing strategies and understanding “market” transaction terms in the independent sponsor market. In addition, our firm provides comprehensive experience beyond mergers and acquisition services, such as tax, real estate, intellectual property, corporate finance, and litigation. Furthermore, we understand the opportunity that independent sponsors deliver to capital providers, and our lawyers add value by making introductions within our network.
What is an independent sponsor?
An independent sponsor is a private equity professional or team that identifies and executes investment opportunities without operating a committed fund. Instead, they rely on raising capital on a deal-by-deal basis. This independent sponsor model provides flexibility and scalability, appealing to both sponsors and investors. Sadis offers comprehensive legal support to independent sponsors, ensuring successful deal execution and alignment with investor goals.
Why choose Sadis for independent sponsor legal counseling?
Sadis brings unparalleled expertise and a personalized approach to supporting independent sponsors. Our services include:
Deal Structuring: Crafting tailored agreements that align with both sponsor and investor objectives.
Capital Provider Negotiations: Securing favorable terms with equity and debt providers.
Regulatory Compliance: Navigating SEC regulations and state-specific requirements.
Transaction Documentation: Ensuring clarity and protection for all parties involved.
Our extensive experience with private equity and investment transactions ensures independent sponsors achieve successful outcomes.
Common Challenges for Independent Sponsors
Independent sponsors face unique challenges, including:
Identifying reliable capital providers.
Balancing investor expectations with strategic goals.
Navigating regulatory hurdles.
Structuring competitive and transparent deals to remain attractive in private equity independent sponsor transactions.
At Sadis, we provide legal guidance to overcome these challenges, and help sponsors focus on building successful investments.
FAQs About Independent Sponsors
Q: What is the role of an independent sponsor?
A: Independent sponsors identify investment opportunities and raise capital on a deal-by-deal basis rather than through a committed fund.
Q: How does Sadis support independent sponsors?
A: We provide legal guidance on deal structuring, compliance, and capital negotiations.
Q: What are the advantages of the independent sponsor model?
A: The model offers flexibility and the ability to align with strategic partners for each transaction.
Q: How do I connect with capital providers as an independent sponsor?
A: Sadis can assist with structuring agreements and negotiations to secure reliable capital partners.
Explore our corporate and private equity legal services or get legal advice on your independent sponsor deal by scheduling consultation.
