List of the Top Capital Providers
for Independent Sponsors

In this guide, we share a list of the top independent sponsor investors deploying equity capital in lower middle market sponsor-led transactions, including everything from well-established legacy companies like Petra, to popular new-model investors like CapitalPad. Each firm has been vetted based on track record, deal execution speed, capital deployment capacity, investment value-add, reputation among sponsors, and my own personal experience.

The Leading Independent Sponsor Investors

Here is a list of the key investors and equity capital providers for independent sponsor transactions.

1. CapitalPad
2. Ocean Avenue Capital Partners
3. HighVista
4. Boathouse Capital
5. True West Capital Partners
6. Petra Capital Partners
7. Five Points Capital
8. Greyrock Capital Group
9. Star Mountain Capital
10. Brightwood Capital
11. Trivest Partners
12. Monroe Capital
13. Align Collaborate

Overview of Capital Parters

Investors in this asset class are specialized capital providers who partner with independent sponsors and fundless sponsors on a deal-by-deal basis to acquire companies in the lower middle market. What was once a relatively obscure corner outside the traditional private equity ecosystem has expanded rapidly, with an estimated 1,200–1,400 active independent sponsors operating today.

Independent sponsor capital providers fall into six categories:

1. Debt-only financing partners (lenders)
2. Specialty funds focused on minority equity or flexible capital
3. Family offices investing directly in private companies
4. LP network platforms that invest directly and aggregate co-investors (e.g., CapitalPad)
5. SBICs that can offer both debt and equity
6. High-net-worth individuals participating in minority co-investments

The institutional investors highlighted in this post focus specifically on providing minority equity checks for lower-middle-market acquisitions. They tend to be highly selective, often sophisticated, and each has its own criteria: deal size, sector focus, sponsor track record, value-creation strategy, and liquidity expectations. Some prioritize defined holding periods and predictable exits, while others, especially family offices, may welcome multi-decade, evergreen ownership.

How We Built This List

This list was put together to give independent sponsors a practical starting point when raising equity capital. I’ve been on both sides of this equation: raised capital myself, analyzed countless sponsor deals, and now allocate capital directly into these transactions. That perspective shapes how I vetted these firms.

Here’s what I looked for when selecting these investors:

• Active Independent Sponsor Focus – These firms actually work with independent sponsors, not just traditional PE funds. They get the unique structure and challenges of sponsor-led deals.
• Clear Investment Parameters – Each firm publishes documented criteria: EBITDA minimums, check sizes, industry focus, geographic preferences. No guessing games about whether you’re in their ballpark.
• Proven Transaction History – I looked for evidence of closed deals, case studies, or portfolio disclosures. These firms have shown they can actually get transactions done.
• Lower-Middle Market Coverage – Most of these investors target the $10M–$250M enterprise value range where the bulk of independent sponsor activity happens.
• North American Presence – All firms are active in North America. Some go international, but they all do meaningful work here.
• Flexible Capital Structures – These providers offer equity, debt, or hybrid solutions built around sponsor needs, not cookie-cutter structures.
• Track Record and Reputation – I went with financing partners that act just as that, a partner. Firms that have established reputations and consistent deal activity. Raising capital is hard enough without wondering if your capital partner can close.
• No Paid Placements – This isn’t a sponsored list. No firm paid for inclusion, and the order doesn’t reflect any ranking or preference. These are simply firms worth knowing about.

The goal was to highlight reliable, sponsor-friendly capital providers that represent the range of options available in today’s market. Raising capital is terribly difficult. Hopefully this makes your journey at least a little easier than it would have been otherwise.

Raising capital as a fundless sponsor is hard, brutally hard at times, but the right partners can make all the difference. My goal with this guide is to help you navigate that landscape more effectively and shorten the time it takes to find aligned equity providers.

#1 – CapitalPad

CapitalPad Investment Focus & Criteria

• Allocation size: Up to $2,500,000 direct, with additional capital from co-investor partners
• Deal stage: Post-LOI only
• Minimum EBITDA: $1,000,000 (as low as $750k for self-funded search deals)
• Industries: Industry-agnostic, generalist, with strong interest in lower middle market, non-cyclical sectors
• Geographic focus: North America
• Deal cadence: Targets 8–12 allocations per year
• Equity profile: Minority equity only, non-control

CapitalPad has emerged as one of the leading capital providers for independent sponsor and self-funded searcher deals. CapitalPad is a direct minority equity investor, but it also features a deal-by-deal private equity platform for accredited investors seeking to allocate into independent sponsor deals. CapitalPad does not charge sponsors to use the platform, aiming to simplify capital raising for sponsors while providing deal-flow for investors.

Noteworthy Features:

CapitalPad is unique as it has three separate features:

1. CapitalPad invests directly through it’s LP base
2. It introduces independent sponsors to other capital providers, at no cost
3. It provides accredited investors, funds, and family offices with curated deal flow, allowing them to invest in more independent sponsor deals.

How It Works:

Independent sponsors and searchers can submit post-LOI opportunities to the platform. CapitalPad reviews each deal through its internal underwriting process, and if approved, presents a blinded teaser to its network of M&A investors who are actively looking to allocate capital. Interested investors can sign an NDA for full access to the deal room and decide whether to participate alongside CapitalPad in a minority, deal-by-deal private equity structure.

#2 – Ocean Avenue Capital Partners

• Focused on underserved, inefficient markets based on the size or complexity of the transactions
• Transactions include buyouts, thematic platform builds, recapitalizations, growth, or special situations like carve-outs or turnarounds
• Interested in deals discounted due to transaction complexity, limited competition, or under-resourced management

Private equity firm Ocean Avenue looks for hidden gems. It invests in markets that are inefficient because of the size or complexity of the transactions. They believe many high-quality businesses remain undervalued due to limited competition or mismanagement. They partner with independent sponsors to identify and execute on these deals.

The firm thrives on market inefficiencies inherent in small-cap and/or complex situations. These underserved markets offer the most numerous opportunities and the best risk-adjusted returns.

Ocean Avenue boasts over 50 years of collective experience. It has invested capital in more than 100 direct investments. Their sweet spot is founder-owned businesses with EBITDA of $3-$15 million operating in fragmented markets. Especially those with defensible positions and opportunities for operational improvement.

Their strategy includes a wide range of transactions. These include buyouts, thematic platform builds, recapitalizations, and growth initiatives. They also invest in special situations, like carve-outs or turnarounds.

Ocean Avenue Focus & Criteria

• Focus: On inefficient markets, as defined by either the size or the complexity of the transactions.
• Check sizes into deals: $10m – $25m (with reserve capital for growth)
• Deal stage: Post-LOI only
• Minimum EBITDA: $3m
• Industries: Small-cap and/or complex situations. Buyouts, thematic platform builds, turnarounds, carve-outs
• Geographic focus: United States or Canada

Noteworthy Features: They are more willing to invest in complex and non-traditional deals that are outside of the traditional independent sponsor industries. They’re not afraid of the unusual. Also, they do not require board seats to participate in deals.

#3 – HighVista

• Emphasizes achieving alpha and amplified returns in inefficient markets
• Focused on the lower-middle market companies, which provides an attractive risk/reward
• Partners with specialized managers and independent sponsors to construct outperforming portfolios

HighVista claims to differentiate itself through its “relentless pursuit of alpha”. It aims to achieve this through identifying inefficiencies and building long-term, value-driven partnerships. The firm focuses where the inherent market inefficiencies create compelling risk/reward profiles.

HighVista partners with sponsors to construct portfolios that can outperform the broader market. They partner with independent sponsors and managers with expertise in many different markets. HighVista focuses on identifying hidden opportunities. It then supports them through every phase of the investment lifecycle.

Their approach emphasizes robust analysis and bespoke deal structuring. This enables sponsors to capture the full potential of each investment. Their detailed, data-driven methodology helps maximize value creation with every opportunity.

Investment Focus & Criteria

• Focus: “On the least efficient segment of the private equity ecosystem”
• Industries: Targeting special opportunities
• Geographic focus: North America

4. Boathouse Capital

• Lean team allows nimble, flexible investments for a variety of transactions
• Strategic guidance and expertise in M&A execution, sales acceleration, human capital management
• Focused on accelerating growth and unlocking scale through organic growth and acquisitions

Boathouse Capital provides customized solutions to unlock value creation. The firm empowers every member of its lean team to be decision makers. They can respond to sponsor needs and market opportunities with speed and flexibility.

This signature nimbleness makes them valuable partners. Timing and adaptability often dictate success.

Boathouse Capital supports independent sponsors across multiple transaction scenarios. The firm provides structured capital for acquisitions, sales acceleration, recapitalizations, and full or partial liquidity events.

It also provides strategic guidance and expertise in M&A, sales acceleration, and human capital management. This support helps independent sponsors drive post-acquisition growth and create exit value.

Boathouse Capital Focus & Criteria

• Focus: Good companies with stable historical financial performance and modest ongoing capital requirements
• Offers: Growth Capital, Acquisitions, Recapitalizations, Control Buyouts
• Check sizes into deals: $5 – $50m
• Industries: Software, SaaS, Tech-Enabled Services, Healthcare, IT

Boathouse Capital Noteworthy Features: Flexible capital (offers both debt and equity), offers strategic help beyond just capital (sales, M&A), and a lean team so getting to a decision is easier than with many funds.

5. True West Capital Partners

• Began centered on the West Coast, then expanded across the U.S.
• Deal-specific structured capital: agile, flexible, and fast
• No collateral or personal guarantees required

True West began on the West Coast but has across the United States. It provides bespoke financing solutions that meet the evolving needs of independent sponsors.

Agility, flexibility, and speed of execution characterize the firm’s structured capital approach. These qualities matter to independent sponsors with time-sensitive acquisition opportunities. Transaction velocity can be a competitive advantage.

The firm’s model emphasizes simplicity and effectiveness. It offers financing solutions that do not require collateral or personal guarantees. This approach reduces barriers for sponsors and enhances the efficiency of transactions.

True West focuses on the quality of the opportunity and the sponsor’s expertise rather than personal financial backstops. This relieves a point of pressure many other private equity investors can inflict. It frees sponsors to focus on strategic growth and operational improvements.

True West Investment Focus & Criteria

• Focus: Established and profitable middle-market companies
• Check sizes into deals: $5m – $25m
• Minimum EBITDA: $3m ($10m revenue)
• Industries: Business Services, Consumer, Food, Healthcare, Manufacturing, Transportation Logistics
• Geographic focus: United States

True West Noteworthy Features: Heavy focus on relationships built on “candor and trust”, and the ability to move quickly. Focused on the long-view versus the short-term.

6. Petra Capital Partners

• A pioneer of the growth capital model since 1996
• Provides both debt and equity; often deploys debt before traditional lenders and helps current owners retain more ownership
• Comfortable having a control or non-control ownership position

Petra has a deep understanding of capital markets and a long track record of success. It brings decades of experience to their partnerships with independent sponsors. The firm provides debt and equity.

The firm has a reputation for being willing to deploy debt capital early in a company’s lifecycle. Sometimes before traditional lenders would consider entering a deal.

This capital flexibility gives sponsors who partner with them a competitive advantage. They can approach business owners concerned about maintaining significant equity with attractive deals.

Petra works with diverse deal structures. They can be a valuable partner for sponsors looking to execute complex deals. The firm says it’s comfortable having a control or non-control ownership position. It works with management teams and co-investors to craft financing solutions that meet the needs of all stakeholders.

Petra Capital Partners offers a robust solution for sponsors seeking growth financing. The firm’s commitment to innovative capital deployment sets them apart.

7. Five Points Capital

• Strives for consistency and financing certainty
• Can react quickly to provide incremental capital or support when needed
• Focused on long-term partnerships over one-off deals

Five Points Capital seeks out long-term partnerships with high-performing independent sponsors. The firm helps to build value, ensure financing certainty, and provide incremental capital to support growth.

This approach creates continuity for sponsors. They can develop a track record with Five Points across multiple transactions.

The firm strives to create stability through flexible and responsive capital solutions. This includes providing incremental capital when needed. They can give sponsors the resources they need to seize emerging opportunities.

The fund’s approach centers on building long-term relationships with established partners. This lets them provide follow-on funding without a lengthy approval process.

8. Greyrock Capital Group

• Strong track record with independent sponsors since 2002
• Larger target acquisitions (check size $8-$40+ million)
• Focused on maintaining sustainable corporate culture over the life of each investment

Greyrock Capital Group has two decades of experience investing in attractive opportunities. It has been through many different cycles and situations. It provides one-stop junior capital to sponsors to finance buyouts.

The firm targets companies with a larger enterprise value than many other independent sponsor capital providers. Its target check sizes range from $8 to $40+ million. This lets sponsors to compete for acquisition targets that might otherwise be beyond their reach.

The firm is selective. But it provides stable, patient capital for sponsors with whom it partners.

Greyrock labels itself a “culture carrier.” It emphasizes its private investment funds focus on sustainable corporate practices as well as financial returns. The firm seeks investments that align with its broader vision of long-term value and responsible management.

9. Star Mountain Capital

• Specialized asset management firm focused on the U.S. lower-middle market
• Makes direct credit and equity investments
• Local relationships in 20 cities help source, analyze, and manage high quality investments

Star Mountain Capital makes direct credit and equity investments. Star Mountain Capital’s origination platform sets it apart. It leverages local relationships in 20 U.S. cities to source, analyze, and manage portfolio companies. This allows Star Mountain to conduct lower-middle-market deals in an efficient, institutional manner. Localized insight translates into more informed decision-making in markets larger firms might overlook.

Local market knowledge paired with institutional processes makes Star Mountain Capital valuable partners. They’re ideal for sponsors seeking both capital and value-added resources.

10. Brightwood Capital

• Relationship-based proprietary origination focusing on family-owned SMBs
• Focused in New York and Chicago
• Vertical concentration in business services, franchising, healthcare services, transportation & logistics, and technology & telecommunications

Brightwood Capital employs a proprietary origination strategy. It’s relationship-based, focusing on family-owned small and medium-sized businesses. These are the same targets for many sponsors, making Brightwood a valuable partner. The firm understands the strategic and operational needs of family-owned SMBs. They know how to unlock sustainable value.

The firm has a strong presence in New York and Chicago. This positions them well to serve these key markets and the regional ecosystems that surround them.

Brightwood Capital concentrates on five verticals:

• business services
• franchising
• healthcare services
• transportation & logistics
• technology & telecommunications

This specialization gives them deep sector expertise for portfolio companies in these verticals. That helps them assess risks and opportunities and tailor capital solutions to the needs of these industries.

11. Trivest Partners

• BluWave Top Private Equity Fund Innovator Award winner for four consecutive years
• Proprietary “Path to 3x” value creation program
• Supports growth of founder-led and family-owned businesses while preserving culture

Trivest Partners earned the BluWave Top PE Innovator Award in each of the past four years. This recognizes them among the top 2% of private equity firms.

The firm emphasizes supporting the growth of founder-led and family-owned businesses. It aims to add value to organizations without disrupting their culture or compromising their ideals. This value proposition can benefit sponsors in their pitches to sellers.

Trivest uses a proprietary “Path to 3x” value creation program that targets tripling the business within 3-5 years. It does this through a proven growth strategy the firm tailors to fit each business’ needs. This program reflects Trivest’s commitment to driving operational improvements and strategic repositioning.

12. Monroe Capital

• One-stop debt and equity financing solutions for independent sponsors (acquisitions and recapitalizations)
• Offers sponsors an efficient path for raising capital and a high degree of certainty
• Capital structures with preferable economics (closing fees, annual management fees, and promote structures)

Monroe Capital offers one-stop financing solutions. They cater to independent sponsors seeking debt and equity capital for acquisitions and recapitalizations.

The firm offers flexible, cost-efficient capital structures to independent sponsors. This is an attractive proposition for sponsors operating in fast-moving markets.

Monroe Capital positions itself as a supportive strategic partner. It focuses on providing preferable economics. These include lower closing fees, favorable annual management fees, or optimized promote structures. They help independent sponsors maximize their returns and focus on long-term value creation.

13. Align Collaborate

• Focused exclusively on the specialized equity needs
• Emphasizes collaboration with ambitious sponsors
• Access to growth resources that can help enhance a deal’s economics

Finally is Align Collaborate. The firm focuses on the specialized equity needs of sponsor deals.

As its name suggests, Align Collaborate centers on collaboration. It helps sponsors through partnerships based on open communication and strategic alignment.

Align Collaborate formed through a partnership between an active lower-middle market private equity firm and experienced independent sponsor investors. They bring over 20 years of combined experience to their partnerships.

The firm works to match the right capital structure to each transaction. They offer tailored capital solutions catering to the unique challenges and opportunities in the lower-middle market. Align also boasts a broad network and growth resources. It leverages these to enhance each deal’s economics and long-term value creation.

Investment Focus & Criteria

• Focus: Focuses only on equity capital for independent sponsors
• Check sizes into deals: $5m – $30m
• Deal stage: Post-LOI only
• Minimum EBITDA: $2m
• Required post-close ownership: 25% – 100%
• Industries: Business Services, Industrial Services, Software, Tech-Enabled Services, Specialty Manufacturing, Value-Added Distribution
• Geographic focus: North America

Statistics from independent sponsor capital raises

Here are the results of Axial’s Independent Sponsor Report, providing insights on where sponsor capital is raised.

• 83% raise from family offices
• 79% raise from high net worth individuals
• 73% from SBIC funds
• 65% from personal wealth
• 52% from PE funds

Different groups may require different investment structures to fit a specific profile or mandate. For example, family offices may be open longer hold periods or more direct influence. Institutional capital may expect tighter reporting and controls, while HNWI’s can be far more flexible. We recommend reading the complete McGuireWoods Independent Sponsor Survey for a detailed breakdown of the data.

Summary of the Independent Sponsor Model

Without a pool of dedicated committed capital or binding investor commitments, the independent sponsor model can be difficult, but the group of minority-support capital providers is growing.

This list of investors in the independent sponsor market represent a cross-section of available partners, with differences in experience, flexibility, preference of portfolio companies, and industry speciality in sponsor-led deals. Most have a committed fund, and thus operate out of a binding mandate.

FAQ

Where do sponsors actually find these investors?

Building relationships with capital providers happens through a mix of direct outreach and good old-fashioned networking.

On the direct outreach side, platforms like CapitalPad and Axial give you access to deal-sourcing networks where investors are actively looking. Independent sponsor conferences like the McGuireWoods Conference and iGlobal Forum events are worth attending, not just for the panels, but for the hallway conversations. Investment banks and intermediaries can also make introductions to capital providers in their networks.

The relationship-building side matters just as much. Family offices often prefer working with sponsors they’ve gotten to know over time, so engaging early through their investment committees pays off. Other successful sponsors can provide warm introductions if you’ve built real relationships with them. LinkedIn and industry associations help you connect with generalist investors. Industry forums and online communities are useful too, though the quality varies.

The pattern I’ve seen work best: start with platforms and conferences to get initial meetings, then turn those into actual relationships before you need the capital.

What do investors actually look for before writing a check?

Most investors have baseline requirements, though specifics vary by firm.

On the financial side, expect minimum EBITDA requirements typically starting around $2 million. They want to see proven cash flow stability with room for growth, strong financial controls and reporting systems, and a realistic path to 2-3x returns within 3-7 years.

Deal structure matters too. Most investors won’t engage before you have a signed letter of intent. They want to see you’re post-LOI with a real deal. You’ll need a defined exit strategy and timeline, a purchase price that makes sense relative to market multiples, and a management team rollover or retention plan.

For sponsor qualifications, investors look for relevant industry experience and operational expertise. They want to see a track record of successful transactions or business management, meaningful skin in the game through personal capital investment, and strong references and reputation in the market.

How do independent sponsor deals differ from search fund investments?

Funds in this space operate differently than search fund investors. Independent sponsor transactions require significantly larger company size and more disciplined criteria before investors commit capital.

The financial bar is higher. Minimum company EBITDA ranges from $750,000 to $3+ million, depending on the investor. They expect demonstrated cash flow stability with growth potential, reliable financial controls and reporting systems, and a clear path to achieving 2-3x returns within 3-7 years.

Most deals must be at the post-LOI stage before investors will engage. You need a defined exit strategy and timeline, purchase price in line with market multiples, and a management rollover or retention plan to ensure continuity.

On the sponsor side, investors want relevant industry or operational expertise, a track record of prior transactions or business leadership, meaningful personal capital investment (actual skin in the game), and strong reputation and references in the market.

Beyond these baseline requirements, investors apply their own filters based on industry focus, deal size preferences, and their existing relationship with the sponsor.

References

1. Scurria, A. (2024, March 15). Private-equity managers persevere in pitching first-time funds. The Wall Street Journal. https://www.wsj.com/articles/private-equity-managers-persevere-in-pitching-first-time-funds-0d7cb75f
2. Axial. (2023). Axial’s 2023 independent sponsor report: Summary analysis. Axial Forum. https://www.axial.net/forum/axials-2023-independent-sponsor-report-summary-analysis/
3. McGuireWoods LLP. (2025). Independent sponsor services. McGuireWoods. https://www.mcguirewoods.com/services/industries/private-equity/independent-sponsor/
4. Price Benowitz LLP. (n.d.). Independent sponsor transactions. Price Benowitz Transactional Group. https://pricebenowitz.com/transactional-group/independent-sponsor/
5. Ice Miller LLP. (n.d.). Independent sponsors. Ice Miller. https://www.icemiller.com/independent-sponsors
6. Smash VC. (n.d.). Independent sponsors: The complete guide. Smash VC. https://smash.vc/independent-sponsors/

Disclaimer: The information provided in this guide is for educational purposes only and should not be construed as investment advice. Investments involve significant risk, and potential investors should conduct thorough due diligence and consult with qualified professionals before making any investment decisions. Past performance does not guarantee future results.

Last Updated: November 24, 2025