Private Equity Law Report published an Aug. 16, 2022, story covering the key findings of McGuireWoods’ report on independent sponsor transactions closed between 2018 and 2021. Subscribers can access the story here.
The firm’s Independent Sponsor Deal Survey, published in May 2022, is the largest of its kind. Based on nearly 300 responses, the deal study is the firm’s most comprehensive analysis to date regarding market terms in independent sponsor transactions. Private equity partners Jeff Brooker, Greg Hawver and Jon Finger presented a portion of the analysis in October 2021 at McGuireWoods’ Independent Sponsor Conference in Dallas and Private Equity Law Report interviewed Brooker for its story.
The Aug. 16 article summarized the survey’s conclusions about deal size, pricing, closing economics, management fees, broken deal costs and carried interest and looked ahead at the future of the market. Brooker cited several potential drivers for growth in the independent sponsor space and said the overall market likely will become more difficult, particularly for independent sponsors who are less equipped to handle a challenging market.
“The independent sponsor that excels in finding value — that has found a niche that it excels at, has true industry expertise, has a true advantage and brings actual value to its investors — will continue to get deals done and be successful,” Brooker said. “Those that are a little less skilled or experienced might struggle.”
McGuireWoods’ 2022 Independent Sponsor Conference will take place Oct. 25-26 in Dallas.