The typical fundless or independent sponsor combines the rigor, sophistication and approach of a traditional private equity firm, but maintains the flexibility and autonomy of operating without the mandates to deploy committed LP capital.

The most successful fundless sponsors focus on institutional quality deal sourcing, transaction execution, portfolio company monitoring and often invest invest personal funds along-side other investors.

Most commonly, independent sponsors have backgrounds as operating executives who have built and grown companies from the inside or have finance and strategy backgrounds stemming from experience in private equity, investment banking or consulting.  

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As the independent sponsor model evolves and institutional capital partners become more selective, it is increasingly important for the sponsor to "add value" either by taking on an operational role in the acquired company or through an active board member/advisory role.