Most independent sponsors (GPs) roll their entire closing fee (1-2% of EV) into the deal, and often they'll inject cash on top too.
Occasionally, especially for bigger deals, they’ll structure an SPV for friends & family, presented as “skin in the game,” though it doesn’t weigh as heavily as their own hard-earned money.
It’s a good look to break it out and be transparent. The more skin in the game, the better.
It’s frowned upon when sponsors cash the closing fee.
