Equity raises are (i) syndicated or (ii) anchor-led:
(i) Independent sponsors usually prefer to syndicate equity from 5-10 minority investors. Why? They can retain (board) control, lead decision-making, and land better GP economics. Syndicating is usually easiest on smaller deals (incl. self-funded search deals) and for seasoned sponsors (with vast and solid investor networks).
(ii) Partnering with a unitranche capital provider or anchor investor is a great solution if it can help get hairy or large deal across the finish line. You will potentially have to share control and might find your economics to be challenged, but who cares if that's what it takes to close the deal.
Minds Capital understands this dynamic. We first and foremost invest in people (sponsors) and then the deal (market/target/terms) is secondary. We only back sponsors who deserve our trust, and we trust them to steer the target towards continued success without a controlling influence from us or anyone else.
