# Independent sponsor

An acquirer who finds the deal first and raises the equity after.

The [deal-by-deal](https://searchspheresource.com/glossary/deal-by-deal) path trades a guaranteed salary for flexibility and for better economics on the deals you actually close, because investors are judging a specific business rather than a [blind pool](https://searchspheresource.com/glossary/blind-pool). The cost is that you fund your own search and carry the risk that a deal you have spent months and real diligence money on fails to raise its equity in time. It suits someone with the runway to work unpaid and a thesis credible enough that capital shows up when a live deal does.

In numbers: A sponsor might charge 2% at closing on a $10M deal, so $200,000, and take a share of profits that pays nothing at all unless the business performs.

Source: https://searchspheresource.com/glossary/independent-sponsor
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

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