More than 600 independent sponsors and capital providers attended the second annual conference Oct. 2-3 in Dallas, where McGuireWoods’ lawyers and industry leaders shared insights on trends and best practices for structuring and executing deals. Finger and McLean, who were instrumental in creating the conference, relayed how many factors are driving the explosive growth of the independent sponsor model as investment professionals continue migrating from traditional private equity funds.
As the model continues to expand, independent sponsors “need to keep in mind ways in which to differentiate themselves,” the authors wrote.
“Industry experience can be tremendously valuable to investors,” Finger and McLean explained. “Being able to offer strong and relevant operational experiences and perspectives on a deal is a value add.”
Building strong relationships with sellers is also critical. “The most successful independent sponsors invest time in upfront legwork, and find value in hidden corners of the market and identifying valuable partners,” they wrote.