The independent sponsor market continues to attract stronger talent and deeper pools of capital - but according to Payton Schramm, Director at Genesis Park, that growth is also raising the bar for differentiation and underwriting discipline. Ahead of the Independent Sponsors Summit: Dallas, we spoke with Payton about:

• Why the “great wealth transfer” is expanding the middle market opportunity set

• What capital providers expect to see in sponsor materials today

• Why structure and alignment matter from day one

• What separates sponsors who can truly build businesses from those who only transact

Q: What are the biggest opportunities and challenges the independent sponsor market faces today?

The biggest opportunity is the growing supply of middle-market businesses driven by the “great wealth transfer,” which continues to expand the addressable universe for independent sponsors. At the same time, the model is attracting stronger talent and deeper pools of capital than ever before, improving access and execution. The challenge is that these same dynamics have created a more competitive and increasingly crowded market, making differentiation and disciplined underwriting more important than ever.

Q: What does a deal need to look like today for you to seriously engage

First impressions matter. Well-organized, thoughtful materials immediately signal credibility and discipline. Even strong deals can lose momentum if they are poorly presented, so a clear investment thesis, defined risks, and a credible value creation plan are critical from the outset.

Q: What criteria do you look for in an independent sponsor — beyond the deal itself? What makes you want to back a particular sponsor?

We focus on a sponsor’s track record, relevant experience, and ability to drive value post-close, along with meaningful personal alignment. Ultimately, we are looking to partner with sponsors who can operate and build businesses, not just transact.

Q: How has your thinking evolved about the environment for independent sponsor deals, as the sector has grown so rapidly?

The overall quality and professionalism of independent sponsors has improved significantly as the market has matured. However, that evolution has also brought increased competition among both sponsors and capital providers, reinforcing the importance of selectivity and underwriting discipline.

Q: Tell us about your first ever deal vs your latest deal — what worked and what didn't?

Across both, the importance of getting the structure right from the outset has been consistent, particularly around leverage and alignment. The broader lesson is that even strong founder-led businesses often require upgraded leadership to reach the next phase of growth, and putting the right CEO in place is a critical driver of success.

Q: What topic(s) are you most excited to cover in your session at the Independent Sponsors Summit: Dallas and why?

I am most interested in discussing how sponsors can position opportunities more effectively early in the process to maintain momentum. Greater clarity around what capital providers are looking for can meaningfully improve fundraising efficiency and execution outcomes.

Q: At the Independent Sponsors Summit: Dallas, what types of opportunities or sponsors are you specifically looking to meet?

We take an open-minded approach and are interested in meeting a broad range of sponsors and opportunities. Experience has shown that initial impressions are not always indicative of underlying quality, and some of the most compelling opportunities emerge through deeper diligence, particularly when brought forward by thoughtful sponsors with well-developed perspectives.

Payton will be speaking live at the Independent Sponsors Summit: Dallas on June 11, 2026 alongside 150+ independent sponsors, capital providers, and active lower middle market dealmakers. Visit the website here and register here.