Insights Blog - ISS

A Day in the Life of an Independent Sponsor

Written by Melissa Smith | Jun 28, 2023 5:04:00 AM

There is a growing group of professionals that are quietly revolutionizing the world of private equity, and these are the Independent Sponsors. Independent Sponsors’ role straddles the line between entrepreneurs and financiers, sourcing their deals, structuring their acquisitions, and managing their portfolios all without the traditional support of a fund. But what does a day in their life look like?

Morning: Investment Sourcing and Deal Analysis

Each morning begins with a hot cup of coffee and a thorough scan of the latest industry news. Staying up-to-date with trends and developments is not just important - it's crucial. It helps me identify potential acquisitions and assess the impact of market changes on my existing portfolio.

After the news, I delve into my network. I reach out to business brokers, investment bankers, attorneys, accountants, and other intermediaries, discussing potential deals and exploring new investment avenues. Relationships are my most valuable asset - they help me unearth the hidden gems.

Then comes the time for deal analysis. I dive deep into the company's financials, understanding the competitive landscape, examining the management team, and evaluating the industry's growth potential. I scrutinize every detail, looking at both risks and rewards, and draft the initial blueprint of how to generate value post-acquisition.

Afternoon: Deal Structuring and Portfolio Management

As the afternoon rolls in, I shift my focus to deal structuring. I develop a comprehensive plan that includes not only the financial structure of the deal but also the operational improvements and growth strategies that we could implement post-acquisition.

Negotiations form a core part of my afternoon. Whether it's discussing terms with the owners of a target company or persuading potential financing partners like family offices or wealthy individuals, every conversation is an opportunity to sell my vision and showcase the value I intend to create.

Later, I transition to managing my portfolio. I liaise with the management teams of portfolio companies, strategize on growth plans, operational efficiencies, and ensure that we're on track to meet our financial targets.

Evening: Networking and Self-Improvement

My evenings often lead me to networking events or industry conferences. These are more than just social gatherings - they're opportunities to meet potential deal sources, connect with financing partners, and learn from my fellow Independent Sponsors.

Towards the end of the day, I always set aside time for self-improvement. This might involve immersing myself in a book on business strategy, taking an online course on financial modelling, or simply reflecting on the day and strategizing for the future.

In Conclusion

In my role as an Independent Sponsor, each day is marked by variety and dynamism. It's a perfect blend of strategy, finance, networking, and entrepreneurship. There are challenges, yes, but the rewards are worth every hurdle. Every day I learn, I grow, and I navigate this unique path with the vision and tenacity it demands.

Being an Independent Sponsor is far from ordinary. It's exciting, challenging, and immensely rewarding. And in this world of ever-changing business landscapes, I am more than just a player - I am a shaper, a mover, a pioneer.