A PROVEN RESOURCE TO INDEPENDENT SPONSORS
Peninsula Capital Partners was among the first, if not the very first, mezzanine investment firm founded with the strategic focus of investing in situations in which a traditional buyout firm is not leading (a.k.a., “sponsoring “) the transaction. Accordingly, a major component of our investment program has always been catering to the unique requirements of independent sponsors. In fact, approximately half of our over 100 platform investments have been in partnership with independent sponsors, both as a control and non-control investor, which we believe makes us one of the most active investors in such transactions in the private capital industry.
Our great success with independent sponsors owes to the fact that we are uniquely qualified to evaluate, structure and close such deals. As a firm principally dedicated to investing in non-traditional buyouts and other leveraged transactions, we have the institutional expertise and flexibility to understand and structure a customized capital solution for independent sponsor deals. Our extensive experience with independent sponsor transactions has allowed us to develop a deep understanding of the issues that are most important to them, and how to productively collaborate to identify and execute the most efficient and effective approach to close a deal.
Unlike many other private capital firms, we are not wedded to a certain investment formula or ownership structure. We do not necessarily require a control position as is common among private equity investors; rather, only a fair return and reasonable legal rights commensurate with the role we are being asked to fill in the transaction. We believe our investment flexibility and ability to customize our investment and equity participation to the unique features of each transaction sets us apart in the transactional finance industry.
Having closed so many deals with independent sponsors over such an extended period of time provides us a rare perspective. We have become very familiar with both the economic and business objectives of independent sponsors, and have gained an appreciation for the variety of approaches independent sponsors have with respect to their role in a target company post-closing. Whereas some independent sponsors are keenly interested in being involved in the company’s operations, others are more strategic minded, preferring more passive board roles. Our extensive experience with such deals has provided us the opportunity to develop a variety of partnership approaches to address the unique objectives, capabilities and competencies of independent sponsors, and the requirements of the transaction.
In summary, Peninsula Capital Partners was one of the first firms to actively seek out independent sponsor transactions and has been one of the most active investors in such deals for years. We have extensive experience and competence in this very specialized area of transactional finance — experience and competence we continue to share with the industry on a daily basis. We are constantly seeking to expand our network of independent sponsor partners and would greatly appreciate the opportunity to consult with any independent sponsor on their next transaction.
We invite people interested in learning more about our experience with independent sponsor transactions to visit the Portfolios section on this website which summarizes dozens of successfully closed independent sponsor deals, and to visit the Transaction Case Studies section which presents a more in-depth description of two completed independent sponsor transactions as well as other types of transactions.