Quarterly News | October 2020
First European Independent Sponsor Study
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Since the inception of Co-Investment Partners, we have been focusing on European small-cap direct investments alongside experienced local deal partners, so called “independent sponsors”. Over time, we have built relationships with over 120 independent sponsor groups across the continent and we currently work closely with over 65 of them.
We have considered over 120 transactions together with independent sponsors and took a positive investment decision on six. We therefore decided to shed some light on this discreet, but growing universe of highly motivated private equity investment teams and professionals with an edge.
The result is probably the first European Independent Sponsor Study to which we dedicate our October 2020 Newsletter. Find out more about… |
Independent sponsors’ motivation to operate without a traditional private equity fund What deals they are focusing on The strengths and challenges of the business model The economics of independent sponsor transactions How Covid-19 impacts this segment of the private equity market
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INDEPENDENT SPONSORS: NO FUND, NO PROBLEM… |
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In Europe, independent sponsors are still a relatively unknown species of private equity market participants. Also called deal-by-deal sponsors or fundless sponsors, their operating model of executing private equity transactions deal-by-deal, without having a fund, is better established in the US.
However, with investors seeking to invest more directly in private companies and the traditional fund model under scrutiny, the independent sponsor model is gaining traction and acceptance amongst European investors who seek a more flexible, targeted, hands-on and cost efficient way to build a private equity portfolio.
At Co-Investment Partners, we partner with independent sponsors to source and execute direct private equity transactions for our investors. In this report we seek to share some of our insight and experience and create more awareness for this exciting and emerging private equity segment… |
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