You’re Not Negotiating Against the Seller
If you ever feel the need to assign someone to be the bad cop ahead of a meeting with a
2026
103 posts
The 4th Constraint in Deal-by-Deal PE
2 founding partners see their capacity cap at 5-6 platforms as independent sponsors. I always say there are 3
When to write a CIM for your deal?
Right away! 1. Building a CIM uncovers gaps in your understanding & DD. 2. Socializing a CIM pressure tests the
Rollups Still Need Underwriting Discipline
If you're working on a rollup, and especially if you've raised a vehicle to do so,
When Do You Need an Anchor Investor?
An anchor investor is especially important when: • Your deal is larger (>$20m equity raise). • The equity check is heavy
AI Is a Feature, Not the Thesis
Boring Business + AI = Strong returns ? This thesis might suffice for VC, growth equity folks, and California angels, but it is
When Independent Sponsors Grow Up
Independent sponsor firms’ maturity goes beyond # of deals & MOIC-to-date. It is reflected in the operations, diligence, reporting,
Operating Partner 1.0, 2.0, 3.0, 4.0
The evolution of Operating Partners in Private Equity: Operating Partner 1.0 (1990-2010): Retired CEO. But weren't
The Buyer Is Still Selling
Buying a company is a sales process. Slight paradox: you're the buyer, but you're still selling.
Rolling Up Tiny $400k EBITDA Targets
Independent sponsors claim they can buy companies anywhere in the US. Fine. Ziv Bendor has 9 holdings at Pinewell: 3
Share Mgmt Fee w/ Seller?
It can feel awkward to impose a ~$250-400k mgmt. fee on a newly acquired company, especially if (i) the
Fundless, Generalist, Still Doing Deals
Charles (Chad) Scripps has been running Black Lake Capital since 2013. They still sign ~500 NDAs per year, look at
From Policymaker to Independent Sponsor
As a political appointee working directly for the Governor, Lisa Piercey led & shaped healthcare policy in Tennessee. Now she
North Haven Capital's entire edge is Maine's 600k people
Drew Bagin and his partner Sam only buy businesses in Maine, New Hampshire, Vermont, and Massachusetts. Maine has 600k people.
More Upside, Same Downside: What 815 IS Deals Show
815 independent sponsor (“IS”) deals analyzed: IS deals have a similar risk profile to traditional PE deals, with greater upside.
Low Margins = Opportunity!
I often prefer low margins to high margins. Not because of the underlying business fundamentals. I understand high margins typically
Post-LOI: Milestones That Keep a Deal Moving
Post-LOI milestones signal momentum and confidence. The timeline that you've communicated to the seller is also your
Anti-Embarrassment
Anti-embarrassment clause: Included in Purchase Documents to protect a seller from the "embarrassment" of selling a company
Customer research = Gold
Customer research is the best way to both diligence your deal and excite your investors. Examples: • 1-on-1 interviews.
Why Rush to Sell a Good Business?
Andrew McDonald might be the most quotable guest we've had on. Guilty criminals who go free, bluebirds of
"Families are lost."
"Families are lost." After exiting their source of wealth (most typically a 9-digit business), the FO/UHNWI
Family Offices always want to "collaborate" on deal flow
"We would love to collaborate on deals with you," says every Family Office in the world. Of course
Four Owners, Four Jobs, No Split Focus
HKW's CEO, Ted H. Kramer, splits the firm's work into four jobs instead of two. HKW
Country club & Racecar
An independent sponsor was able to move a seller from "NO" to "Yes!" on an 8-
