Capital Providers
for Independent Sponsors
In this guide, we’ve compiled a list of the top independent sponsor equity investors worth targeting. 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.
List of the Top Independent Sponsor Investors
- CapitalPad
- Ocean Avenue Capital Partners
- HighVista
- Boathouse Capital
- True West Capital Partners
- Petra Capital Partners
- Five Points Capital
- Greyrock Capital Group
- Star Mountain Capital
- Brightwood Capital
- Trivest Partners
- Monroe Capital
- Align Collaborate
Overview
Investors in this niche asset class are specialized capital providers who partner with fundless sponsors on deal-by-deal basis to acquire companies in (usually) the lower-middle market. This once-niche corner of private equity is having its moment, with an estimated 1,200–1,400 current independent sponsors.
One thing that hasn’t changed in this fast growing asset class is the critical need to raise equity capital. I’ve been on both sides of this equation. I’ve raised capital myself, have analyzed countless independent sponsor deals, and now allocate capital directly into sponsor-led transactions. This unique perspective gives me insight into what separates the best investors from the rest.
Independent sponsor capital providers fall into six categories:
- Debt-only providers (lenders)
- Specialty funds
- Family offices
- LP networks (like CapitalPad)
- SBICs (offering both debt and equity)
- High net worth individuals
The investors listed in this post focus on providing equity checks to sponsors acquiring lower-middle market companies. They are highly selective, usually sophisticated in nature, and each have specific factors they are looking for when investing. Some are looking for transactions focusing on a strict timeline of liquidity, while some family offices are happy to be a part of a multi-decade journey. We recommend reviewing the McGuireWoods survey for more detailed info.
Raising capital is difficult. Terribly difficult. It is my hope that this list makes your journey as a fundless sponsor at least a little bit easier than it would have been otherwise.
#1 – CapitalPad
CapitalPad is emerging as a leading investor for independent sponsor deals. CapitalPad is a direct investor and equity capital provider, but also a platform connects independent sponsors with funds, family offices, and accredited investors to help close additional equity gaps beyond their own capital base. Additionally, for outside investors, CapitalPad provides curated access to institutional-quality independent sponsor transactions.
Investment Focus & Criteria
- Allocation size: Up to $2,000,000 direct, with additional funds coming from partners
- Deal stage: Post-LOI only
- Minimum EBITDA: $1,000,000
- Industries: Industry agnostic
- Geographic focus: North America
- Deal Types: Works with both independent sponsors and self-funded searcher deals
Key Differentiators
- (For sponsors) Access multiple capital providers in one location – CapitalPad invests directly, and connects other investors in one dashboard
- No cost to sponsors – Invests directly, and does not charge for additional intros
- (For investors) Access to curated independent sponsor deal-flow – CapitalPad shares deal flow with other investors
- Post-close support – Optional marketing, website development, and growth services
- Pooled investment structure – Non-institutional investors are pooled into a single entry on cap table
- User-base – Direct investments, plus access to both HNWI investors and funds/family offices
CapitalPad attempts to offer independent sponsors a somewhat more streamlined path to raising equity capital. Posting a deal on CapitalPad presents a blinded teaser to a pool of lower-middle market M&A investors who are actively looking to allocate. They can sign an NDA for further details.
#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 Capital Partners 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 Capital Partners 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 Capital Partners 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, 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 targets the lower-middle market, 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 equity capital 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 in independent sponsor deals. 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: 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 Capital Partners 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 debt and equity capital; often deploys debt before traditional lenders and helps current owners retain more ownership
- Comfortable having a control or non-control ownership position
Petra Capital Partners 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 capital to lower-middle market companies.
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 Capital Partners 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 independent sponsor deals. It has been through many different cycles and situations. It provides one-stop junior capital to sponsors to finance buyouts.
The firm targets slightly larger acquisitions than many 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 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, and connects to institutional and high-net-worth investors
- Local relationships in 20 cities help source, analyze, and manage high quality investments
Star Mountain Capital makes direct credit and equity investments in independent sponsor deals. It also runs a platform that allows institutional and high-net-worth investors to invest. This setup gives sponsors access to capital, business support, and market insights, all in one place.
Star Mountain Capital’s origination platform sets it apart. It leverages local relationships in 20 U.S. cities to source, analyze, and manage deals. 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 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 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. It provides a high degree of certainty in closing transactions. 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.
Summary
The equity capital landscape can be challenging for the independent sponsor model, but the group of dedicated capital providers is growing.
The above curated list of independent sponsor investors represents a cross-section of available capital partners, with differences in experience, flexibility, and industry speciality in sponsor-led deals.
Use this list as launchpad for building relationships with providers to help get deals over the finish line.
FAQ
Where can sponsors build relationships with dedicated investors?
The most effective ways to find investors include:
Direct outreach strategies:
- Leveraging platforms like Axial, CapitalPad, and other deal-sourcing networks
- Attending industry conferences such as the McGuireWoods Conference, iGlobal Forum events, and regional networking meetings
- Networking with investment banks and intermediaries who maintain relationships with capital providers
- Connecting through professional networks like LinkedIn and industry associations
Relationship-building approaches:
- Engaging with family offices early through their investment committees
- Building connections with other successful sponsors who can provide introductions
- Participating in industry forums and online communities
- Leveraging existing business relationships and asking for warm introductions
What are the investor requirements before allocating capital?
Most investors have specific criteria they evaluate before committing capital:
Financial requirements:
- Minimum EBITDA typically from $2 million plus
- Proven cash flow stability and growth potential
- Strong financial controls and reporting systems
- Clear path to 2-3x returns within 3-7 years
Deal structure requirements:
- Post-LOI stage (most won’t engage before a signed letter of intent)
- Defined exit strategy and timeline
- Appropriate purchase price relative to market multiples
- Management team rollover or retention plan
Sponsor qualifications:
- Relevant industry experience and operational expertise
- Track record of successful transactions or business management
- Skin in the game through personal capital investment
- Strong references and reputation in the market
What do investors typically require in independent sponsor deals?
Most independent sponsor investors apply disciplined criteria before committing capital. While requirements vary by investor, the following themes are common:
Financial Requirements
- Minimum company EBITDA of $750,000 to $3+ million
- Demonstrated cash flow stability with potential for growth
- Reliable financial controls and reporting systems
- A clear path to achieving 2–3x returns within 3–7 years
Deal Structure Requirements
- Deal must be at the post-LOI stage (most investors will not engage earlier)
- Defined exit strategy and timeline
- Purchase price in line with market multiples
- Management rollover or retention plan to ensure continuity
Sponsor Qualifications
- Relevant industry or operational expertise
- Track record of prior transactions or business leadership
- Meaningful personal capital investment (“skin in the game”)
- Strong reputation and references in the market
Investors may also apply their own additional filters depending on industry, deal size, and relationship with the sponsor.
What are the typical capital sources?
Capital sources for sponsor deals vary based on deal size and structure, but here are the main sources according to Axial and Ice Miller include:
- Platforms (like CapitalPad)
- Family offices
- SBIC funds
- Specialized private equity funds
- High net worth individuals
References
- 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
- Axial. (2023). Axial’s 2023 independent sponsor report: Summary analysis. Axial Forum. https://www.axial.net/forum/axials-2023-independent-sponsor-report-summary-analysis/
- McGuireWoods LLP. (2025). Independent sponsor services. McGuireWoods. https://www.mcguirewoods.com/services/industries/private-equity/independent-sponsor/
- Price Benowitz LLP. (n.d.). Independent sponsor transactions. Price Benowitz Transactional Group. https://pricebenowitz.com/transactional-group/independent-sponsor/
- Ice Miller LLP. (n.d.). Independent sponsors. Ice Miller. https://www.icemiller.com/independent-sponsors
- 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: September 23, 2025
