Large-cap PE funds build massive centralized "ops" teams to support the portfolio. Independent sponsors can't afford this.
So, instead of building the back office, how about acquiring it?
Acquiring a Platform-as-a-Service (PaaS) company would be your strategic backbone: supporting portcos & business owners and persuading prospective LPs about the value-add capabilities. It's a clever way to build profitable infrastructure.
I've come across 2-3 independent sponsors who prefer to buy and permanently hold professional services firms over hiring an HR Director and CFO for each portco.
Thanks to Leah Berend, CPA, today's guest on the Minds Capital Podcast. New episode each Wednesday.
