In this insightful episode, Joe Rodgers gathers three independent sponsors at different stages of their journey to dissect the dynamic world of independent sponsors. His guests are Jerry Donatelli of Cornerstone Capital Partners, Thomas Ince of LP First Capital, and Jonny Miller of Platt Park Capital.

We dive deep into their unique paths into the industry, from Thomas' entrepreneurial leap of faith to Jonny's transition from an established middle-market private equity firm. The discussion covers the evolution of the space from a "cottage industry" to a credible and crowded landscape, the critical strategies for winning deals without a committed fund, and how to build trust with entrepreneurs.

The discussion dives into:

• Landscape: The independent sponsor model has evolved from a niche idea to a credible, competitive part of M&A, with more capital sources available than ever before.
• Differentiate Yourself: Without a committed fund, win deals through deep industry expertise, authentic relationships with founders, and a strong, complementary team.
• Persistence is Key: Success comes from relentless effort and a structured process. "Luck" is when preparation meets opportunity.
• Addressing the "Equity Question": Overcome the lack of a fund by focusing on your track record and vision. For new sponsors, creativity in showcasing experience is crucial.
• Partnership Over Price: Choose capital providers based on trust and strategic fit, not just terms. They are true partners, especially in the lower middle market.
• Manage the Process: Be transparent with sellers, set clear timelines (90-120 days), and stage due diligence to avoid overwhelming them.
• Leverage QSBS (1202): Use Qualified Small Business Stock for significant tax advantages. Sponsors often need to champion this structure.
• Advice for Newcomers: Focus on closing your first deal, embrace an entrepreneurial hands-on approach, and stay humble and resilient through the inevitable ups and downs.

Listen in for invaluable, real-world advice on sourcing deals, structuring capital, managing the acquisition process, and the importance of partnership with both sellers and capital providers. Whether you're a seasoned sponsor or just considering the leap, this conversation is packed with actionable insights from the front lines.

Disclaimer: This podcast is for informational purposes only and does not constitute investment advice.

Perspectives of the Ever-Evolving Independent Sponsor Universe can be found wherever you get your podcasts, including:

Apple

https://podcasts.apple.com/us/podcast/perspectives-of-the-ever-evolving-independent-sponsor-universe/id1765495381

Spotify

https://open.spotify.com/show/7zZHoMp9NI5D3BMaG2fnfl

Web

https://redcircle.com/shows/perspectives-of-the-ever-evolving-independent-sponsor-universe