List of Independent Sponsor Investors and Capital Providers

Independent sponsors, often referred to as fundless sponsors, raise equity capital on a deal-by-deal basis rather than from a committed fund. Finding reliable investors who participate in these transactions, such as family offices, private equity firms, and specialized capital providers, is often a challenge.

This article highlights 10 established independent sponsor investors with a documented history of backing transactions in the lower middle market. Each firm was selected based on publicly available investment criteria and evidence of completed deals. The goal is to provide a vetted reference resource, not a ranking, for independent sponsors seeking qualified equity partners.

How We Chose These Firms

This list was built to serve as a practical reference for independent sponsors seeking capital partners. To ensure accuracy and transparency, we applied the following criteria when selecting firms:

Independent Sponsor Focus – Each firm actively works with independent or fundless sponsors, not just traditional private equity funds.
Clear Investment Parameters – We included firms that publish documented investment criteria (EBITDA, revenue, deal size, and industry focus) on their websites or through credible industry sources.
Transaction Track Record – Selection was based on evidence of closed independent sponsor transactions, case studies, or portfolio disclosures.
Lower-Middle Market Coverage – Priority went to firms targeting deals in the $10 million–$250 million enterprise value range, where most independent sponsor activity occurs.
North American Relevance – All firms actively invest in North America, with some extending their mandate internationally.
Capital Structure Flexibility – We highlighted firms offering equity, debt, or hybrid structures tailored to independent sponsor needs.
Established Reputation – Preference was given to firms with a proven presence and consistent deal activity in this space.
Editorial Integrity – This is not a sponsored list, and no firm paid for inclusion. The order of appearance does not reflect ranking or preference.

By following these guidelines, we aimed to highlight reliable, sponsor-friendly firms that represent the breadth of capital options available in today’s independent sponsor market.

List of Company Profiles

1. CapitalPad: The Streamlined Equity Provider

Investment Criteria:

$5 million–$50 million in enterprise value
Minimum EBITDA of $1 million
Direct investments from $750,000–$1.5 million (more from network)
Post-LOI deals
Industry-agnostic with preference for durable businesses with strong historical profitability
North American geographic focus

CapitalPad is recognized as one of the leading equity investors for independent sponsor transactions, with a strong track record of supporting fundless sponsors across diverse industries. CapitalPad is a direct investor, and then reduces the fundraising friction with its curated network of family offices, and funds, and high net worth accredited investors. CapitalPad’s rapid decision-making process allows some deals to be funded in as little as 14 days. It offers sponsors guidance through best practices and access to an experienced investor network.

Post-close, CapitalPad offers independent sponsors hands-on support for scaling operations, if desired, including strategic guidance, service provider vetting, and marketing acceleration.

2. Merit Capital: Junior Capital Certainty Provider

Investment Criteria:

Lower-middle market U.S.-based companies
Provides junior capital, subordinated debt, and equity hybrid financing
Single-source solution for capital stack needs beyond senior financing
Revenue of at least $20 million
EBITDA of at least $4 million
Manufacturing and service businesses across a variety of industries

Merit Capital specializes in junior capital solutions for independent sponsor-led deals, offering subordinated debt and equity hybrid structures that bridge the gap between senior financing and pure equity. It provides certainty to close as a single source of junior capital (both the necessary equity and subordinated debt) for independent sponsors considering multiple financing sources.

The firm’s partnership model allows independent sponsors to lead transactions while Merit contributes specialized structuring expertise across multiple asset classes, reducing the complexity of assembling junior capital from various providers. This approach helps sponsors maintain control while securing the subordinated financing needed to complete acquisitions with attractive return potential.

3. Petra Capital Partners: Growth Capital Pioneers

Investment Criteria:

U.S-based healthcare and B2B business services
$10 million in revenue
$1 million in EBITDA
$10 million–$75 million in enterprise value
Makes $10 million–$25 million investments
Mezzanine debt, preferred equity, and common equity
Comfortable with both control and non-control ownership positions

Petra Capital Partners has pioneered the growth capital model since 1996. It offers debt and equity capital to lower-middle market companies. It often deploys debt earlier in a company’s lifecycle than traditional lenders. This helps sponsors present attractive terms to small business owners aiming to retain significant equity.

Petra works with diverse deal structures. It partners with sponsors seeking growth financing and looking to execute more complex deals.

4. Star Mountain Capital: The Investor With Local Connections

Investment Criteria:

At least $15 million in revenue
EBITDA up to around $50 million
Makes direct investments of $15 million–$150 million (usually structured as debt with equity upside via warrants or small equity co-investments)

Star Mountain Capital provides direct credit and equity investments. They also connect independent sponsors to institutional and high-net-worth investors. The firm boasts a national origination platform with local investment professionals in more than 20 U.S. cities. This network allows it to source and manage deals others might miss.

Star Mountain is a valuable partner for sponsors seeking funding, strategic support, and local market insights. It offers flexible capital solutions, matching independent sponsors with the most appropriate capital structure for their deals.

Relationship-Driven Approaches

5. Trivest Partners: A Recognized Leader in Founder-Led/Family-Owned Businesses

Investment Criteria:

Strong founder-led and family-owned businesses in the U.S. and Canada
At least $20 million in revenue
$4 million–$15 million in EBITDA
$25 million–$250 million transactions
Also invests in larger deals (revenue above $50 million and EBITDA above $15 million)

Trivest Partners is a four-time BluWave Top Private Equity Innovator Award winner, placing it among the top 2% of PE firms. Its proprietary “Path to 3x” program aims to triple business value in 3–5 years through tailored growth strategies.

Trivest specializes in supporting founder-led and family-owned businesses while preserving their culture,. This can help independent sponsors courting values-driven sellers. The firm has a long track record of offering independent sponsors reliable, responsive support and flexibility with competitive economics.

6. Greyrock Capital Group: The Culture Carrier

Investment Criteria:

$2 million–$30 million in EBITDA
Usual check size between $8 million–$40 million (sometimes more)
Channel prominence, leading market share, sustainable competitive advantages, and stable recurring demand and revenue streams
Specialty materials & chemicals, aerospace, manufacturing, distribution, medical devices, healthcare services, business services, food & beverage, and education industries

Greyrock Capital Group has partnered with independent sponsors since 2002. If offers one-stop junior capital for buyouts.

The firm prioritizes sustainable corporate practices and maintaining company culture in addition to strong financial returns. Its selective, patient capital and commitment to responsible management make Greyrock an ideal partner for sponsors seeking long-term value and alignment with sellers who care about their legacy.

7. Five Points Capital: The Long-Term Partnership Builder

Investment Criteria:

$3 million of EBITDA or more
High free cash flow conversion, experienced management, defensible competitive advantages, and a proven proposition
Buyouts, recapitalizations, and acquisitions
Makes $5 million–$30 million investments

Five Points Capital favors long-term partnerships with independent sponsors over one-off transactions. They offer partners financing certainty and the flexibility to provide incremental capital quickly. This enables sponsors to act on growth opportunities without delays. The firm’s relationship-driven approach supports continuity across multiple deals, helping sponsors establish a track record.

Five Points offers stable, responsive capital solutions tailored to the evolving needs of ambitious independent sponsors.

Operational Excellence and Flexibility

8. Boathouse Capital: The Nimble Decision Maker

Investment Criteria:

For EBITDA multiple companies:
- $10 million in revenue
- $2 million in EBITDA
- EBITDA margins of at least 10%
For revenue multiple companies:
- ARR above $5 million
- LTV/CAC of at least 3:1
- a 12–18 month path to positive cash flow
Makes investments of $5 million–$50 million
Growth capital, strategic acquisitions, minority recapitalizations, and control buyouts
Software & SaaS, technology-enabled services, and healthcare IT / services industries

Boathouse Capital offers flexible equity solutions and fast decision-making. Its nimbleness helps its respond to independent sponsor needs and market opportunities quickly.

Boathouse also brings strategic expertise in M&A execution, sales acceleration, and human capital. Its combination of speed, adaptability, and operational support helps sponsors unlock scale and drive post-acquisition growth through a variety of deal types.

9. HighVista: The Multi-Strategy Specialist

Investment Criteria:

Lower middle market focus with over $3 billion invested since 1995
Partners with specialized managers and independent sponsors
Primary fund investments, co-investments, and secondary investments
Available through commingled funds and separately managed accounts
North American focus with flexible geographic approach

HighVista’s team has over 150 years of combined investment experience and focuses strategically on the lower middle market. The firm offers multiple entry points for independent sponsors through their diversified approach.

Led by former direct private equity professionals, HighVista provides flexible capital allocation focused on building “best ideas” portfolios. Their ability to partner across primary funds, co-investments, and secondaries gives independent sponsors multiple pathways to access their capital and expertise.

10. Encore One: The Agile Co-Investment Partner

Investment Criteria:

Co-investments alongside independent sponsors in sponsor-led deals
$4 million–$7.5 million EBITDA “sweet spot”
Check sizes of $2.5 million–$10 million per investment
U.S. headquartered middle-market companies
Financial services, healthcare services, industrial services, specialized manufacturing, and value-added distribution
Seeks strong competitive positions with predictable cash flow and growth opportunities

Encore One brings family office flexibility to independent sponsor partnerships through its private holding company structure. Without hard exit deadlines, the firm can adapt to deal timing and sponsor needs with exceptional agility while maintaining institutional-quality underwriting standards.

The firm’s relationship-driven approach combined with its ability to move quickly makes it valuable for sponsors navigating competitive processes or requiring flexible capital timing. Encore One’s focus on high-quality sponsors and management teams creates alignment that supports long-term value creation across multiple deal cycles.

Conclusion

Independent sponsor transactions continue to attract a growing base of institutional investors, family offices, and flexible capital providers. The firms highlighted in this list represent established partners with proven experience in the lower middle market and a clear track record of supporting sponsor-led acquisitions.

For sponsors, selecting the right equity partner is not only about capital, but also alignment on governance, hold period, and value creation strategy. By focusing on firms with demonstrated commitment to independent sponsor deals, sponsors can increase execution certainty and build long-term relationships that extend across multiple transactions.