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
Podcast
78 posts — Minds Capital Podcast: Your connection to the growing world of independent sponsors and deal-by-deal private equity.
When Independent Sponsors Grow Up
Independent sponsor firms’ maturity goes beyond # of deals & MOIC-to-date. It is reflected in the operations, diligence, reporting,
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
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.
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
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
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
The Hybrid Independent Sponsor
Lou Grabowsky doesn't fit the usual independent sponsor mold. Conventional wisdom: you start with nothing, fund your own
Family Offices vs. High-Net-Worth: The Hold Period Divide
Logan Walters prefers indefinite hold periods. No forced exit clock, just a pragmatic eye kept open in case something spectacular
"Tropicalizing"
Christian Seale taught me a new word: tropicalizing. Taking a US concept and adapting it for Mexico. Officially adding it
Find the Bottleneck, Ignore the Rest
Jimmy Watson gave me a reading assignment I didn't know I needed. In our pre-call, he mentioned
GP recap to >50% control
A GP (searcher/sponsor) can recap their way to majority control (>50%) of a successful deal, even with $0
3 Bad Rs
The 3 Rs shunned by Private Equity: Retail, Resources, Real Estate However, valuations tend to reflect the lower popularity, and
Acquire HoldCo Infrastructure
Large-cap PE funds build massive centralized "ops" teams to support the portfolio. Independent sponsors can't
Don't build for your acquirer
Some PE acquirers specialize on knowing their exit: "We know who will acquire this company, so let's
Singular KPIs
Tires per hour 🛞 That was the crucial KPI for Chandos Mahon at his waste management company. He attributes half of
Beware addbacks & adjustments
Eugene Polevoy claims there are incentives all-around to get a deal done, which inevitably leads to aggressive addbacks &
Transitioning to the next generation (GP)
Transition Capital Partners is a mainstay in Dallas private equity. Jason Faucett and his team are the 4th generation of
"We are not operators."
"We are not operators." Most independent sponsors insist they're (more) operations-focused (than others). It'
Timing debt vs. equity
Socialize deals early with lenders, maybe even before the LOI. Gauge their appetite, get feedback to form a sources &
Hiring at GP-level for better talent
"You can attract better talent when hiring at the GP level." For independent sponsors with multiple platforms, consider
