Raising Capital. Searcher turned Independent Sponsor?

September 26, 2025

by a searcher from Western Washington University in Scottsdale, AZ, USA

Good morning. I've been searching for a business acquisition over the last few months, and have bumped into a few opportunities that are larger than my original deal box parameters. It now introduces a requirement to raise capital from investors - anywhere from###-###-#### 5M. What was previously a self-funded search with an SBA loan, is starting to look like an independent sponsor deal. The business is strong, excellent leadership, etc. But financing the deal is the biggest unknown at this size & scale. -Has anyone raised capital for a larger business acquisition? Better yet, has anyone been a GP on an independent sponsor deal? -How did you navigate the debt side of the deal? Experience or preferences with bankers on deals of this size? -Can you share any details on terms you offered to investors? -What did your fundraising process look like? -Mistakes or learning lessons from the process? What would you do differently today? -Does this materially change the game? Should we stick to Thank you!

Reply by a searcher
from Western Washington University in Nashville, TN, USA

^redacted‌ fellow WWU alum here! I helped raise debt on an independent sponsor type deal - our capital stack was a mix of SBIC funded debt, equity, seller rolled equity, and seller note. In considering your sources of capital there's lots of options to choose from: PE firms, family offices, SBICs, mezz/junior, LP investors, etc. Your EBITDA size, track record, and the economics you're looking for are big factors in determining which path might serve you best.

Reply by a professional-advisory
from University of Pennsylvania in Dallas, TX, USA

Thank you, Luke Guidance in the Independent Sponsor Model I am looking to partner with experienced executives who are interested in owning and running a business I partner with seasoned executives to help them establish platforms as independent sponsors and help them lead roll ups in industries that they know well. I've been an independent sponsor a couple of times in my career, and it was extremely rewarding. This allowed me to run a company with a meaningful ownership stake leveraging capital from third parties. If I can be helpful in your search, the acquisition process, or accessing capital, please contact me here or my email address redacted . My LinkedIn is https://www.linkedin.com/in/jim-tolbert-2338b01/

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