Inside the Independent Spon... | Lippes Mathias LLP

Inside the Independent Sponsor Boom: Deal Strategy, Track Records, and What Comes Next

March 29, 2026 | Corporate Blog

Great insights into the tremendous growth of new independent sponsors

“Each deal is ... more important for their track record-building."
“It can be of existential importance. As a new sponsor, you might only have a few shots to prove yourself as a new team ... They're looking for those deals where they have an edge and can deliver an outsized return."
“Their opportunity cost has become lower given all of these challenges that have been happening for the last couple of years."
“There's greater visibility of the sector and demonstrated success stories. These private equity professionals are thinking about alternatives and have a greater awareness of the independent sponsor market as an attractive alternative."
“An independent sponsor has to be more creative about deal sourcing. They need to find a deal that is more proprietary, more bilateral."
“A lot of sponsors, particularly those that come from larger firms, tell us [they] want to go back to the good old days of private equity [when] they were working with a [portfolio] company, adding value as a board member, helping them with roll-ups."
“Now, they spend a lot of time involved in fundraising, managing teams, and doing things that are less [related to] the pure deal-making that they enjoy the most."

John Koeppel's commentary on "The Lesser-Known of PE Where Sponsors Seek 3x-Plus Returns," Private Equity International

Disclaimer: The information in this post is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from our firm or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.

Related Team

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