The Independent Sponsor in Private Equity (aka Fundless Sponsor)

What is an independent sponsor (aka fundless sponsor)? In contrast to a private equity fund, an independent sponsor sets out to source an acquisition target (business for sale), and then raises the funds to complete the acquisition. This can be achieved by an individual or a team of people working to raise capital on a deal-by-deal basis.
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www.asimplemodel.com/PrivateE...
Financial Modeling Curriculum:
www.asimplemodel.com/curriculum
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[@johnlien911]

Peter, what is the rationale for first forming the partnership entity and then creating the holdco underneath? Thank you!

[@Eghenosakhare]

Is it safe to assume Independent Sponsors (GPs) and Managing Partners are the same?

[@ginalowe9103]

One of my questions is do the LPs get monthly distributions typically?

[@ASimpleModel]

Most transactions are not structured for distributions or dividends. Investors realize capital gains at exit when the company is sold. It's possible, but generally cash flow goes towards debt service and growth.