Independent Sponsor typically describes a firm who brings together funding for a specific investment, rather than in a comingled fund structure like a PE fund.
What We Offer
Partnership, collaboration, and transparency
- Recently raised new fund with plenty of patient capital
- Full promote structure, including competitive monitoring fees and carried interest
- Certainty of backstop by us with flexibility to bring in other LPs on a minority basis
- Our operating team provides support, strategic decisions, talent enhancement, technology enablement and foundational reporting and finance
- Speed and certainty – We know that a “quick no” is almost as valuable as a “certain yes”
Experience
- We’ve been there. We started as an Independent Sponsor with only one LP, executing three deals before raising our first distributed institutional Fund I
- See our case studies for examples of where we have backed Independent Sponsors
- We are senior M&A professionals with prior experience at firms such as Blackstone, Sun Capital, Gryphon Investors and Welsh Carson
Email us at info@newstatecp.com and indicate Independent Sponsor in the subject. We will respond within 24 hours.
FAQs
How does New State work with Independent Sponsors?
Where an Independent Sponsor has identified a target investment, New State will provide capital, deal support and operating resources. Importantly, we will negotiate an incentive structure for the Independent Sponsor. New State can increase certainty to the seller with its committed capital and be a value-added partner to the Independent Sponsor.
What is New State’s experience with backing Independent Sponsors?
- We have closed two platform acquisitions with Independent Sponsors: Martinez Steel and Arbor Works.
- We have been establishing an increasing presence in the Independent Sponsor community, including as a sponsor of the 2021 McGuire Woods Independent Sponsor Conference.
- Importantly, we started as an Independent Sponsor with only one LP, executing three deals before raising our first distributed institutional Fund I.
What does New State offer?
- Recently raised new fund with plenty of patient capital
- Full promote structure, including competitive monitoring fees and carried interest
- Certainty of backstop by us with flexibility to bring in other LPs on a minority basis
- Operating support
- Speed and certainty – We know that a “quick no” is almost as valuable as a “certain yes”.
Does New State pay referral fees?
Yes! It is very hard to find good businesses in which to invest. We work with brokers and finders as well as management teams and investment bankers. While each arrangement is bespoke, we typically negotiate the fee to be paid at closing for transactions that we did not otherwise see.
Explore Successful
Independent Sponsor Partnerships
Martinez Steel
Developed in partnership with Isleworth Capital Partners
- Headquartered in Ontario, CA, Martinez is one of the nation’s largest independent rebar subcontractors
- Martinez offers premium fabrication and placement capabilities, specializing in major public and private infrastructure projects on the west coast
- Services the largest and most prominent general contractors on increasingly large and complex projects
ArborWorks
Developed in partnership with Five Crowns Capital
- Headquartered in Oakhurst, CA, ArborWorks is a leading provider of vegetation management services to multiple investor-owned utilities in the western states
- ArborWorks’ service offering includes disaster recovery tree removal, routine compliance, enhanced vegetation management & fuel reduction, system maintenance, and pre-inspection services
- The company’s services are critical for limiting wildfires and restoring services following disasters
What our partners are saying
As independent sponsors, it is critical for us to find a capital partner who thinks collaboratively like an actual partner.
New State fully delivered on all aspects of the combined relationship between co-investors and the Sellers. We would be proud to work with them anytime.”
The team at New State have been great partners throughout our relationship.
They jumped in quickly and were able to provide a joint LOI with us despite a very compressed timeframe. Their ability to move quickly, work with a solution-oriented mindset around a complex situation and develop good relationships with the seller and management team were critical to getting our deal done. They brought strategic resources to facilitate diligence, gain access to key customers and accelerate the post-closing operating plan.”