"Bumping" into 50% of deals
After 12 platforms and 4 exits I was surprised to hear that Rick Apple just “bumps into” half of their
Podcast
53 posts — Minds Capital Podcast: Your connection to the growing world of independent sponsors and deal-by-deal private equity.
Advisory board for accountability
An advisory board is a great accountability partner. Advisors don’t need a formal arrangement or hefty compensation. Weekly emails,
VC + LBO = IS deal
Zack Miller and his high school friend Johnny Lieberman combined their distinct backgrounds to launch Worklyn Partners, a dual platform
"Very bullish" on US equities
Why I am "very bullish" on US equities: • The new tax bill incentivizes capex spend by accelerating depreciation
Ep24: 24 Add-Ons in 24 Months
Episode 24: 24 Add-Ons in 24 Months Clever way to start: Luis Reyes hired an analyst to research industries and
When independent sponsors break up 💔
The flexibility of the deal-by-deal model also manifests in break-ups. 💔 Traditional partnerships tie up equity, control, roles, and obligations in
When to hire a capital placement agent
The 3 situations where independent sponsors should consider engaging a capital placement agent to help with the fundraise: #1: First
"Strategic generosity" to build trust
Examples of strategic generosity as a way to build long-term value & trust: • Yield on GP terms if capital partner
Pushed Out by Anchor Investor
How to minimize the risk of predatory capital providers stealing your deal: • Include non-circumvention provision in NDA. • Own the relationship
Faustian bargain in PE
Faustian Bargain in PE: when a fund sacrifices flexibility to pursue their favorite deals in exchange for committed capital. La
70% cost savings w/ remote work
Competitive edge: 70% cost savings by mastering remote work. An expert on hiring & managing an offshore workforce, Nick Huber&
Get in the arena
"You miss a 100% of the shots you don't take" is a quote by legend Wayne
The Best Way To Start As An IS
The best way to start as an independent sponsor is when your (PE or FO) employer doesn't want
Zone-Skipping EBITDA
Zone-skipping is a foundational principle in lower-middle market PE. Scaling EBITDA into the next zone unlocks higher valuation multiples by
Bankers Can Enhance Your Value Prop
Use the sell-side banker to enhance the value proposition of your bid. Instead of circumventing the banker or downplaying your
2nd Tier Cities As Competitive Advantage
Most people in Milwaukee, Wisconsin, are probably not contemplating a career as an independent sponsor, and, if they do, they
Minority Recaps Enabled By Flexibility
The vast majority (99%+) of independent sponsors deals are majority acquisitions, but in the off-chance that you're working
Opportunity Outside USA
I'm fascinated by the opportunity at hand for independent sponsors outside the US: There’s definitely some deal-by-deal
12 Keys for Above-Market Terms
12 factors that can help independent sponsors negotiate above-market terms with their equity investors: 1. A low valuation. Creates value
IS Model + Cyclical Industries = Good Match
Counter-intuitively, the independent sponsor model is particularly suited to cyclical industries, such as construction. My initial thinking was that an
How to Earn Trust With Sellers
Ideas of how to earn trust with sellers, investors, and other stakeholders: • Maximize the say-do ratio (do what you say,
Honing Deal Sourcing
Most independent sponsors view deal sourcing as the "necessary evil" which precedes real value creation. For them, deal
Acquiring Companies Where LMM PE Doesn't Exist
Former footballer Nikolay Dimitrov went from playing against Ronaldinho at FC Barcelona to negotiating with chain-smoking veterinarians in Eastern Europe.
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
