Compass Group’s John Huhn on How To Land Deals as an Independent Sponsor
Episode description
The independent sponsor model of investing is becoming more popular with investors and businesses looking for a more flexible partnership than what the private equity model allows.
But for those interested in getting started as an independent sponsor, getting to the point where you have the capital to invest and businesses that are willing to partner with you can seem daunting.
“The fact is, this is a tough world to go out and get your first few deals done, and it takes time,” says John Huhn, Managing Partner at Compass Group Equity Partners, St. Louis-based independent sponsor focused on middle- and lower-market transactions in niche manufacturing and consumer services.
But with help from people like John, would-be independent sponsors can get a leg up in the field.
On this episode of Deal-by-Deal, John talks to hosts Rebecca Brophy and Jon Finger about how he got involved in independent sponsorship and where he thinks the investing model is going.
Tune in to hear about how to get started as an independent sponsor, what kind of financial and legal terms you should keep in mind when making deals, and how to find the partners and capital providers: the “right people, with the right appetite, the right check size, and the right time.”
You’ll also hear about the different ways an independent sponsor can partner with a business, and how to harness the power of the independent sponsor community to learn and grow in your field.
Meet Your Hosts
Name: Rebecca Brophy
Title: Partner at McGuireWoods
Specialty: Rebecca focuses her practice on corporate transactions, including mergers and acquisitions, equity and debt offerings, venture capital financings and strategic collaborations.
Connect: LinkedIn
Name: Jon Finger
Title: Partner at McGuireWoods
Specialty: Jon Finger's practice focuses on private equity and corporate transactional matters, including mergers and acquisitions, securities offerings and corporate governance initiatives.
Connect: LinkedIn
Featured Guest
Name: John Huhn
Title: Managing Partner, Compass Group Equity Partners
Specialty: John has 25 years of experience in private equity, entrepreneurism and strategic consulting that he brings to his work as an independent sponsor.
Connect: LinkedIn
Acquired Knowledge
Top takeaways from this Deal-by-Deal episode
★ Get clear on your preferred role in an investment partnership. Some independent sponsors are okay with a more hands-off approach once they’ve set their financial and legal terms with the business, while others are really intent on being a part of that business’ executive team, making sure strategic initiatives are implemented and providing oversight. There’s a...