Independent Sponsor typically describes a firm who brings together funding for a specific investment, rather than in a comingled fund structure like a PE fund.
What We Offer
Partnership, collaboration, and transparency
- Plenty of patient capital
- Full promote structure, including competitive monitoring fees and carried interest
- Certainty of backstop by us with flexibility to bring in other LPs on a minority basis
- Our operating team provides support, strategic decisions, talent enhancement, technology enablement and foundational reporting and finance
- Speed and certainty – We know that a “quick no” is almost as valuable as a “certain yes”
- We will invest non-control, depending on the track record of the independent sponsor
Experience
- We’ve been there. We started as an Independent Sponsor with only one LP, executing three deals before raising our first distributed institutional Fund I
- See our case studies for examples of where we have backed Independent Sponsors
- We are senior M&A professionals with prior experience at firms such as Blackstone, Sun Capital, Gryphon Investors and Welsh Carson
Email us at info@newstatecp.com and indicate Independent Sponsor in the subject. We will respond within 24 hours.
FAQs
How does New State work with Independent Sponsors?
Where an Independent Sponsor has identified a target investment, New State will provide capital, deal support and operating resources. Importantly, we will negotiate an incentive structure for the Independent Sponsor. New State can increase certainty to the seller with its committed capital and be a value-added partner to the Independent Sponsor.
What is New State’s experience with backing Independent Sponsors?
- We have closed five platform acquisitions with Independent Sponsors.
- We have been establishing an increasing presence in the Independent Sponsor community, including as a sponsor at the McGuire Woods Independent Sponsor Conference.
- Importantly, we started as an Independent Sponsor with only one LP, executing three deals before raising our first distributed institutional Fund I.
What does New State offer?
- Plenty of patient capital
- Full promote structure, including competitive monitoring fees and carried interest
- Certainty of backstop by us with flexibility to bring in other LPs on a minority basis
- Operating support
- Speed and certainty – We know that a “quick no” is almost as valuable as a “certain yes”.
- We will invest non-control, depending on the track record of the independent sponsor
Does New State pay referral fees?
Yes! It is very hard to find good businesses in which to invest. We work with brokers and finders as well as management teams and investment bankers. While each arrangement is bespoke, we typically negotiate the fee to be paid at closing for transactions that we did not otherwise see.
Explore Successful
Independent Sponsor Partnerships
HFI
Developed in partnership with Hudson Glade
- Harrell-Fish (“HFI”), headquartered in Bloomington, IN, is a leading provider of mechanical installation and maintenance services across the Midwestern United States
- The Company serves a diverse range of commercial clients across Healthcare, Education, Government, Pharmaceutical and other industrial end markets
- Harrell-Fish supports clients across their full project lifecycles, from upfront virtual design through material fabrication, installation and subsequent maintenance and support services
- New State worked with Amethyst Capital Group, a New York-based independent sponsor with extensive experience in commercial and industrial services. New State, Amethyst, and the management team will work closely alongside New State operating resources to drive value creation
HFI
Developed in partnership with Amethyst Capital Group
- Harrell-Fish (“HFI”), headquartered in Bloomington, IN, is a leading provider of mechanical installation and maintenance services across the Midwestern United States
- The Company serves a diverse range of commercial clients across Healthcare, Education, Government, Pharmaceutical and other industrial end markets
- Harrell-Fish supports clients across their full project lifecycles, from upfront virtual design through material fabrication, installation and subsequent maintenance and support services
- New State worked with Amethyst Capital Group, a New York-based independent sponsor with extensive experience in commercial and industrial services. New State, Amethyst, and the management team will work closely alongside New State operating resources to drive value creation
ComNet
Developed in partnership with Hudson Glade
- Headquartered in Bethel, CT, ComNet is a premier provider of low-voltage electrical infrastructure including cabling, AV, and security systems
- Core focus is design, engineering, and installation of structured cabling for facilities owned and operate by F500 companies in the insurance, financial services, technology, and e-commerce industries
- National presence, with three offices and 300+ technicians across all 50 states
- New State supported Hudson Glade in the transaction due to its pedigree and shared focus on building better businesses. Hudson Glade and New State are working collaboratively, including utilizing New State operating resources, to grow ComNet through professionalization, organic avenues, and strategic acquisitions.
The Expo Group
Developed in partnership with Panos Partners
- Headquartered in Irving, TX, The Expo Group is a leading architect of trade shows and live events throughout the United States and Canada
- The company serves a well-diversified and long-tenured customer base, including for-profit independent show organizers, trade associations, corporations, and higher education institutions
- Its core capabilities include upfront planning, design, setup, and execution of trade shows and live events across a diverse set of end markets
- New State worked closely with Panos Partners, leveraging their pre-existing relationship with The Expo Group’s management team, to structure a transaction that worked for all parties
Universal Plant Services
Developed in partnership with APEX Capital Partners
- Headquartered in Deer Park, TX, UPS is a leading provider of aftermarket maintenance, repair, and operations for industrial equipment
- UPS specializes in mission-critical services for rotating and reciprocating machinery used in downstream energy facilities, midstream pipeline stations, and other industrial sites
- The company’s core capabilities include nested maintenance, repairs, turnarounds and outages, and installation
- UPS was separated from an industrial conglomerate in a complex corporate carve out transaction
ArborWorks
Developed in partnership with Five Crowns Capital
- Headquartered in Oakhurst, CA, ArborWorks is a leading provider of vegetation management services to multiple investor-owned utilities in the western states
- ArborWorks’ service offering includes disaster recovery tree removal, routine compliance, enhanced vegetation management & fuel reduction, system maintenance, and pre-inspection services
- The company’s services are critical for limiting wildfires and restoring services following disasters
Martinez Steel
Developed in partnership with Isleworth Capital Partners
- Headquartered in Ontario, CA, Martinez is one of the nation’s largest independent rebar subcontractors
- Martinez offers premium fabrication and placement capabilities, specializing in major public and private infrastructure projects on the west coast
- Services the largest and most prominent general contractors on increasingly large and complex projects
What our partners are saying
As independent sponsors, it is critical for us to find a capital partner who thinks collaboratively like an actual partner.
New State fully delivered on all aspects of the combined relationship between co-investors and the Sellers. We would be proud to work with them anytime.”
The team at New State have been great partners throughout our relationship.
They jumped in quickly and were able to provide a joint LOI with us despite a very compressed timeframe. Their ability to move quickly, work with a solution-oriented mindset around a complex situation and develop good relationships with the seller and management team were critical to getting our deal done. They brought strategic resources to facilitate diligence, gain access to key customers and accelerate the post-closing operating plan.”
The UPS business has an exceptional MRO business profile. However, the divestiture transaction they sought was complex. The New State team quickly understood the opportunity at hand and moved with conviction to complete thorough due diligence, documentation and funding for the benefit of all the parties involved.
We’re delighted to be partnered with New State and the UPS management team to achieve the next stage of the company’s growth and evolution.”
Partnering with New State Capital Partners has been a positive experience.
From inception to close, the collaboration between our teams was marked by mutual respect, fairness, and a shared commitment to overcome challenges while navigating the complexities of the transaction. We are enthusiastic about our continued partnership as we work together to ensure the ongoing success and growth of this platform. We look forward to collaborating on future projects”