Independent Sponsors and SPV Deals: Why Investors Are Backing Deal-by-Deal Structures

April 12, 2026 | Corporate Blog

Key Takeaways:

Private equity firms/SBICs, family offices, and wealthy individuals are increasingly backing direct deals outside commingled fund structures.
Independent sponsors that invest deal by deal have surged over the past decade, and a massive generational wealth transfer is growing the capital pipeline.
Investors value SPV deals for asset-specific visibility, flexibility, and enhanced governance, and these direct deals cluster in middle market and lower middle market private equity.

An insightful Wall Street Journal article examines the surge in independent sponsor deals and other private equity direct deals:

Who Is Investing in Direct Deals Outside Commingled Funds?

An independent sponsor raises equity for each acquisition on a deal-by-deal basis instead of drawing on a committed fund.

A growing number of private equity (PE) firms/ Small Business Investment Companies (SBICs), family offices, and wealthy individuals are backing direct deals outside of commingled fund structures.
The number of independent sponsors that invest deal by deal has surged over the past decade (especially as more investment professionals set up their own shops).
A massive generational wealth transfer provides a growing pipeline of capital for these deals.
“It’s led to the perfect storm for direct [deals] … appeal on all sides of the investor spectrum.”

What Investors Gain From SPV Deals: Visibility, Flexibility, and Governance

SPV deals let investors underwrite one specific company rather than commit to a blind pool of future investments.

The caliber and experience of firms turning to special purpose vehicle (SPV) deals in private equity have broadened.
Investors in independent sponsor and SPV deals love the asset-specific visibility, flexibility, and enhanced governance.
“You are bringing in investors who have bought into this specific thesis of a specific asset. Therefore, you can be a lot more creative with the duration of the deal and how you manage it.”
Direct deals, including independent sponsor deals, tend to be concentrated among middle-market and lower middle-market companies.

John J. Koeppel's commentary on "Going Direct: Private-Equity Dealmakers Step Outside Commingled Pools," The Wall Street Journal

John is a private equity attorney and partner at Lippes Mathias LLP, where he leads the firm's Private Equity and Independent Sponsor practice teams.

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Related Team

John J. Koeppel
Partner | Executive Committee | Team Leader - Private Equity | Team Leader - Independent Sponsor