Your lifestyle as an independent sponsor?

searcher profile

December 02, 2024

by a searcher in Montreal, QC, Canada

Curious to know what your lifestyle looks like as an independent sponsor.

A few questions that come to mind:
- Do you work very closely with the management team of your PortCo(s)?
- If so, what's your main role?
- Are you still focusing on acquiring more businesses? (what's the max amount you'd be looking to acquire?)
- How connected are you with your LPs? (i..e, daily/weekly/monthly communication? Monthly reviews?, etc.)
- How many hours do you work on PortCos vs. Other work (focusing on sourcing new deals, dealing with financing partners, etc.)
- Are you able to work remotely, or are you mainly working at the company's HQ?
- Follow up to above: has this always been this way / do you foresee this changing?

Feel free to add anything else that you think is relevant. Really curious to just learn more about your lifestyle and what takes up most of your time every week. Will be very insightful.

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commentor profile
Reply by an investor
from University of Birmingham in London, UK
HoldCo with multiple PortCos. Happy to answer your questions

1) We do work closely with the management team, particularly with new acquisitions
2) I am personally responsible for big picture, strategic direction, managing the PortCo CEOs, etc. but other members of my team at the 'GP' level offer more day to day operational and financial support. We have focused on bringing in a lot of new processes, professionalising the businesses, KPIs, dashboards, financial models, project maanaging strategic initiatives, etc.
3) No LPs at present but may change in the future
4)Probably 50/50
5) Yes our HQ is on the other side of the country to that of the PortCos
6) As we scale we are bringing in more skilled people within the PorCos so expectation is that our support will slowly be withdraw and we will start to focus much more of our time on deal sourcing vs PortCo management

If you have any other questions happy to help.
commentor profile
Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
I have been on the board of a PortCo. The IS has few PortCos. He had CEO in each that he ran the day-to- day operation, but he was involved with each business in detail. Even though each business was different, he was on top of critical issues, risk factors, key personnel, financials, etc. We sold the business I was involved with for 28x MOIC in 8 years.
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