Independent Sponsor LP economics

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August 05, 2025

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

What is currently market for investor economics in the independent sponsor space?
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Reply by a searcher
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.
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Reply by an investor
from McGill University in San Diego, CA, USA
Eli Albrecht wrote a great 3 part series on this. You can start here: https://elialbrecht.substack.com/p/m-and-a-monday-a-short-guide-to-debt?utm_source=post-email-title&publication_id=###-###-#### &post_id=###-###-#### &utm_campaign=email-post-title&isFreemail=true&r=9h00s&triedRedirect=true&utm_medium=email
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