How to Keep Company Control as an Independent Sponsor

How independent sponsors gain company control without a controlling equity stake. This video will explore an acquisition structure used by independent sponsors to gain control of the board (a manager-managed LLC aka board-managed LLC).
Introduction to Independent Sponsors:
www.asimplemodel.com/insights...
Becoming an Independent Sponsor:
www.asimplemodel.com/insights...
Independent Sponsor Economics:
www.asimplemodel.com/insights...
Private Equity Fund vs Independent Sponsor:
www.asimplemodel.com/insights...

[@usnavybluesteel]

Fabulous. Simple.

[@ASimpleModel]

Thanks!

[@paulb2022]

Thanks Peter. Clear and concise as always

[@ASimpleModel]

Thanks Paul! A common structure (you likely already knew), but I receive a lot of emails on this subject from people exploring the independent sponsor route and / or search fund route. Eventually enough email responses become a post :)

[@MGP_2024]

You should Collab with the - Investor Center channel. You both are amazing!!

[@ASimpleModel]

Thank you!

[@michaeltabet9223]

Sick content ❤

[@ASimpleModel]

thanks!

[@ellenoir5678]

So if I wanted to do a hedge fund incubator..I would have two entities set up one mgmnt company and one holding company but have the mgmnt company be the managing member of the holding company??

[@stevea982]

Great video! I heard recently that Carlyle's on-cycle recruiting had a 9-statement modeling test. Haven't seen anyone make content around that one yet!

[@ASimpleModel]

Nine statements! I count four if you include the stockholders' equity statement (in addition to the IS, BS and Cash Flow Statement)... maybe a consolidation exercise with multiple income statements and balance sheets?

[@stevea982]

@@ASimpleModel Yes! Stockholders' equity was included. The 9 statements were as follows: 1.) BS; 2.) Statement of changes of stockholders equity; 3.) IS; 4.) Comprehensive income; 5.) CFS; 6.) Supplemental disclosure of Cashflow info; 7.) Noncash; 8.) Financial instruments; 9.) PPA. Would be amazing if someone did a template for this one and could practice doing from scratch!

[@ASimpleModel]

@@stevea982 ha, for sure, actually dealing with something like this currently - entity that holds securities and assets unrelated to core business (perhaps incorrectly, but I generally think of some of those as schedules vs statements) - beastly interview process!