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Joined November 2018
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Deal by deal private equity (aka Independent Sponsor) is NOT for the faint of heart. Here’s a breakdown on what it looks w/real data from our active process for a ~$20MM deal.
BUCKLE UP for: getting told “NO” ~100 times and watching your network EVAPORATE…oh and while that’s happening, you’re accruing diligence fees ($10k -> $50k -> $100k++) and just praying you can keep it all together.
🧵👇
That gets us to today.
Of the 22, a good chunk are SBICs / junior capital folks that primary play in the debt. So checks that are 60% debt / 40% equity, at best. Very few 50-50 equity/debt guys out there.
So even if 1 comes through, we’ve still got an equity gap.
(/26)
And that’s a wrap…for now.
We’ve sent 300+ emails.
Had 40+ hours of meetings.
And we’ve got ~$2mm of equity soft-circled.
Still waiting on a term sheet from an anchor.
Welcome to Independent Sponsor fundraising.
Oh... and as I'm writing this, we've gotten 3 more passes. Not even 2pm yet.
🧢tip @OneManLBO + @FunlessSponsor for inspiration.
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