What to Know About Independent Sponsor Capital Raising for 2026

How active has the independent sponsor market been so far in 2026? In “Independent Sponsor Capital Raising 2026,” a recent Expert Webcast panel discussion, Robert Connolly shared that his practice has seen a material increase in the number of independent sponsor transactions over the past few years, with a very robust pipeline in place.

As one of the leading law firms in the US independent sponsors, LP has a real-time window into the ecosystem. As the model has matured and become more professionalized, independent sponsors are now becoming the predominant buyers of lower middle market companies, particularly family and founder-owned businesses. Independent sponsors are uniquely positioned to win those deals, as they are not beholden to a fund mandate, can be creative on structure and flexible on hold periods, and leverage domain expertise and strategic relationships to drive value.

The panel, which included Sylvie Gadant of Citrin Cooperman, Patrick Stroth of Liberty Company Insurance Brokers, Joe Solari of ZRG Partners; and Bruce Lipian of Stone Creek Capital, touched on several topics of interest to both experienced and emerging independent sponsors, including:

• Current best practices for independent sponsors to source, diligence, and sign letters of intent (LOI) for business acquisitions on a deal-by-deal basis
• Raising equity and debt financing, and partnering with institutional investors and family offices looking for quality deals
• How to structure deals to mitigate risk
• The importance of beginning to build relationships early in the process
• The role of representations and warranties insurance
• Industries that are currently most attractive to deals, and how to move forward as a generalist
• The importance of using counsel and other advisors who have experience with the specific characteristics of independent sponsor deals

Levenfeld Pearlstein specializes in providing comprehensive legal services to both emerging and established independent sponsors, as well as the capital providers who back them. Our multi-disciplinary team covers every aspect of the independent sponsor lifecycle: from LOI, to structuring, acquisition, financing, governance, tax planning, exit, and more.

Questions about an upcoming deal? Reach out to Robert Connolly or another member of LP’s Independent Sponsor team.