When we launched the first Citrin Cooperman Independent Sponsor Report last year, our goal was to shed a light on the largely unchartered landscape of the independent sponsor world, the “Wild West” of private equity, as one of last year’s esteemed contributors, Bruce Lipian, aptly described it.
Last year’s Report was the first of its kind, reaching a large number of independent sponsors (245 to be exact) on a wide variety of topics – firm evolution, deal flow, capital raising, economics and liquidity events, among others. This year, we wanted to capitalize on the success of last year’s Report and to dig deeper.
We continue to explore the themes covered last year, but we have also expanded our analysis of economic terms, in response to feedback from many of you.
In a sector where one broken deal can be financially devastating and one successful liquidity event can set you up for life, the stakes have never been higher. And so this year, based upon responses from over 200 independent sponsors, we have identified “typical” terms and calculations while also finding considerable variation in economic structures. By sharing these data points, both the typical and atypical, it is our hope that independent sponsors and their capital providers will have a greater understanding as to what the market will bear.
We hope that you enjoy the Report, and we look forward to discussing our findings with you.
Sylvie Gadant, Partner - Citrin Cooperman