The independent sponsor space is growing exponentially.
# of sponsors (📈) x $ size of deals (📈)
#: Barriers of entry are low --> one deal and you're in the game. Mid-level bankers and PE principals have figured this out, bringing niche expertise and deal experience to the deal-by-deal PE ecosystem.
$: Increased acceptance for the deal-by-deal PE model by bankers, brokers, and sellers = execution of bigger and bigger deals. The sponsors who did $2-3m EBITDA deals five years ago are doing $10-15m EBITDA deals now. Makes you wonder what they'll be doing in 5-10 years.
