What is the best way to make inroads to PE financing?

searcher profile

January 10, 2021

by a searcher from University of Virginia-Darden - Darden School of Business in Richmond, VA, USA

I bootstrapped a deal myself and have gotten outstanding returns in a year. And I feel that's a great skillset but I also feel limited in that I deeply unfamiliar with financing options that aren't SBA backed. What are the best resources to research and who are the best persons to speak with for someone who understands deals but doesn't have traditional PE experience?

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commentor profile
Reply by an investor
from University of Pennsylvania in Washington, DC, USA
Bruce - sounds like the area you might be pursuing is in the independent sponsor area. I'd research that world - there's also independent sponsor conferences and there's a venn diagram between independent sponsor and self-funded search deals Deals that might be too big for SBA but too small for a full PE buyout. Also if you use the search bar at top and type in "non SBA lenders" you'll find a number of great threads where people discuss non-SBA lending options - many of the SBA providers on this forum also have non-SBA options. Happy to chat if helpful. DM or redacted
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Reply by an investor
from The University of Michigan in Birmingham, MI, USA
Bruce - the non-SBA financing options are going to vary depending on many factors, including the size and type of transaction you are pursuing. That said, if you've had some success already sponsoring a deal that provides a good avenue for starting conversations with various financing options including traditional bank lenders and non-traditional sources such as private funds and public business development corporations ("BDC"s).
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