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Sponsor Finance
Flexible financing solutions tailored for independent sponsors and private equity firms to fund acquisitions.
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Loan Amount
10,000,000
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Time to Fund
3 - 6 Months depending on deal complexity
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Term Length
Up to 10 years
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What is sponsor finance?
Sponsor finance provides capital solutions for independent sponsors and private equity firms looking to acquire businesses. This financing type can include senior debt, mezzanine capital, or equity co-investments, enabling sponsors to close deals without committing substantial personal capital. Whether structuring a leveraged buyout or supporting a portfolio company's growth, sponsor finance ensures access to the right funding.
How Does Sponsor Financing Work?
Sponsor financing enables independent sponsors and private equity firms to acquire businesses without using significant personal capital. By leveraging investor funds or lender financing, sponsors can structure deals that support business acquisitions while minimizing upfront investment. This financing strategy is particularly useful for experienced operators seeking to purchase and grow businesses without traditional capital constraints.
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Minimum Requirements
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Credit Score
Monthly Revenue
Time in Business
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Sponsor finance provides funding for private equity-backed business acquisitions, growth, and recapitalization. Typically, businesses with strong financials and strategic investment backing qualify.
Unlike traditional loans, sponsor finance leverages private equity firms’ expertise and assets, often resulting in more flexible terms and higher loan amounts.
Industries with strong recurring revenue models, such as healthcare, technology, and manufacturing, frequently use sponsor financing.
Sponsors provide financial backing and operational expertise, often influencing strategic decisions and growth initiatives.
Yes, sponsor finance is a common tool for leveraged buyouts (LBOs), allowing businesses to acquire competitors or expand without excessive equity dilution.
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