Independent Sponsor LP economics

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by a searcher from Boston College - Wallace E. Carroll School of Management
in Seattle, WA, USA

10mos ago

Independent Sponsor LP economics

What is currently market for investor economics in the independent sponsor space?

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reply by a searcher 10mos ago
from New York University in San Diego, CA, USA

First thing you need to realize is that there's no "market"- it very much depends on your experience, track record, and LP interest. That said, here's baseline: Acquisition fee: 1-2% Management Fee: 1-5% Annual EBITA of portfolio business Reimbursement of acquisition expenses post-close: dd, legal, etc. Co-Investment: Tpically 1-5% of raised equity Preferred Equity: 8% pref, GP catch-up to 10%, 80/20 split Remember, this is just an example and EVERYTHING is negotiable.

reply by an investor 10mos ago
from McGill University in San Diego, CA, USA

Eli Albrecht wrote a great 3 part series on this. You can start here: redacted