Independent Sponsors peddling non-proprietary deals
What's your experience with Independent Sponsors? I have dealt with a few and have had a wide range of experiences. For those not familiar with the term, it's effectively a "deal by deal" shop that doesn't have discretionary capital or a fund.There's this one group of asshats up in Canada that keep peddling garbage deals which are widely available via auctions (think Evercore, PJT, Lazard). Wtf is the point trying to get me to allocate to a deal and pay you economics and go into your SPV if I can go into it directly myself and have the same edge/advantage as you (if not way more).
The deal by deal situations are tough.
Does your fund have direct PE capability though?
We do. We have co-invested along some independent sponsors in the past but they were always proprietary deals with potential for outsized returns.
That is a bit ridiculous for an independent sponsor to look at deals from such large investment banks, but I can see some situations where the IS has a lot of industry-specific experience and can take some of the heavy lifting from the fund (e.g. healthcare practice rollup platform where ind. sponsor essentially works as the corp dev team). It is more common to see ind. sponsor deals from fly-by-night brokers, where it is not proprietary, but it is also poorly shopped.
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