An independent sponsor is an individual or capital group which raises capital on a deal-by-deal basis. Typically, an independent sponsor will first identify a target company and then seek out capital to acquire it. Capital generally comes from four sources: high-net-worth individuals, private equity firms, hedge funds and family offices. The source of capital often depends on the nature of the deal.
The independent sponsor model directly invests in a project, and therefore allows the sponsor to operate the acquired enterprise, receive project equity, and allocate profits made to the investors.
The model has rose to prominence in recent years and continues to gain momentum as it provides financial partners with exposure to unrecognized investment opportunities and deals that they may not have otherwise come across. Many independent sponsors also provide a wealth of knowledge and expertise in specific sectors, as well as strategic and operational insight that can prove invaluable to investors, whether established private equity firms or otherwise.
Partnering with a well-established independent sponsor is often a great strategy for private equity firms when assessing investment opportunities, as independent sponsors are flexible and have the resources to vet all the deals they receive.
As an independent sponsor, SpringOwl guarantees a high-success rate in raising capital and the certainty of completing lucrative transactions. It has a proven track record, with many investors favoring the model as it provides control over investment terms and decisions, and more access to deals.
SpringOwl is an established partner with individual investors, private equity firms, hedge funds and family offices, who continue to trust in its ability to manage and close successful transactions on a deal-by-deal basis.