Illiquidity Premiums vs. PE
On the topic of liquidity premiums: Yes, all else equal, the liquid asset will always be more valuable. This is
M&A
243 posts
The Perfect Independent Sponsor
What does the perfect independent sponsor look like? • A sizeable team, ideally 3-6 senior partners. • Multiple deals in the portfolio
Meet Investors 1-on-1
Do not consolidate multiple prospective investors into one presentation; pitch meetings should be 1-on-1s. What you think: • Efficient to consolidate.
Use QoE Provider to Renegotiate
Use your QoE provider to renegotiate. If the QoE comes in light, then your QoE provider should: (1) Connect with
Exit Fee for Independent Sponsors
Everyone knows the three standard pillars of independent sponsor economics (closing fee, management fee, carried interest). How about an exit
PE Fund vs. Independent Sponsor Model
Successful independent sponsors are eventually faced with the decision of institutionalizing their success by establishing a private equity fund -
Cold Outreach Step-By-Step
Doing cold outreach to business owners.
Eisenhower 2x2 Matrix
The Eisenhower 2x2 Matrix: important vs. urgent. Operators typically have their hands full with urgent items in day-to-day management. Independent
Try Harder To Differentiate
Being "hands-on", "operationally focused," and "founder-friendly" is table stakes. To differentiate, try harder.
QSBS: Pay Zero Capital Gains Tax
QSBS: pay zero capital gains tax. A heavy argument in favor of structuring your newly acquired entity as a C-Corp
Ep2: Special Situations
The second episode of 'Meeting of the Minds': Azhar Quader and Queens Court Capital built a track record
When Deal Drags On Pre-Closing
Best practices with a seller when your deal is dragging on without closing: (i) Over-communicate. Weekly email updates, frequent phone
Devil's Advocate In DD
When under LOI, everyone needs a devil’s advocate 😈 It’s easy to lose objectivity when you’re pitching your
Inaugural Episode
Today's inaugural episode of Meeting of the Minds features Mike Sutton of Guideboat Capital Partners. Mike's
Don't Buy Seller's "Lifestyle" Argument
"The seller has treated it like a lifestyle business" is a sponsor's code for suggesting it&
White House Coming After Carry
The White House stated today that a new tax bill will aim to eliminate the "carried interest loophole."
SBICs Are Highly Aligned
SBIC/mezz lenders are under-rated for their strong alignment with independent sponsors. Typically they’ll be your senior lender (70-90%
Annual Budget For Searching
Annual budget for searching: Rent: $0 (home office) CRM: <$2k (e.g., Sevanta, Pipedrive, Hubspot) Email augmentation: <$1k
Syndicate vs. Anchor
Equity raises are (i) syndicated or (ii) anchor-led: (i) Independent sponsors usually prefer to syndicate equity from 5-10 minority investors.
Why 30% IRR Is Needed
"Why do I need to show 30%+ IRR in my base case?" A high return is needed to
DOGE, an SBA(7)a killer?
SBA 7a loans weren’t meant to subsidize lower middle market private equity. They weren’t meant to serve as
Exponential Growth in Independent Sponsors
The independent sponsor space is growing exponentially. # of sponsors (📈) x $ size of deals (📈) #: Barriers of entry are low -->
Start with Capital or Deal?
"Should I start by finding capital or deals?" It's much easier to find capital than good
Lame Duck Deal
definition: lame duck private equity deal (noun) A "Lame Duck PE Deal" refers to a private equity investment
