State of the independent sponsor market today

What role do independent sponsors play in today’s lower middle market private equity ecosystem? David Weisburd speaks with Tom Duffy about how TIFF partners with independent sponsors, why deal-by-deal investing can improve alignment, and what differentiates high-quality sponsors in a rapidly growing market. Tom explains how sourcing, economics, and hands-on diligence shape long-term GP relationships and inform future fund commitments.

Highlights:

• TIFF’s dual business model: OCIO services and private market strategies
• Growth of the independent sponsor market and what’s driving it
• Why deal-by-deal investing can improve alignment and diligence
• Key attributes that define high-quality independent sponsors
• How flexibility and economics attract experienced PE professionals
• Fee structures and GP commitment in sponsor-led transactions
• Using early deals to underwrite long-term GP partnerships
• The importance of sourcing differentiation and resilience
• How sponsor relationships can evolve into fund investments

Guest Bio:

Tom Duffy is a Director on TIFF’s Private Market Investment Team, where he focuses on lower middle market private equity and early stage venture capital strategies. TIFF is an outsourced chief investment officer and private markets platform managing over $10 billion* in assets, with a long-standing focus on alternatives and private markets. Tom works closely with independent sponsors and emerging managers, underwriting both deals and long-term partnerships across the lower middle market.

*TIFF assets under management (AUM) is as of 9/30/25 and includes discretionary and non-discretionary client assets for which TIFF affiliates provide investment management or advisory services. The private markets portion of TIFF AUM is calculated based upon fund net asset value plus unfunded commitments. Calculation of TIFF AUM differs from the calculation of regulatory assets under management in TIFF’s Form ADV filings with the SEC and may differ from the AUM calculation methodologies used by other investment managers.

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LinkedIn: https://www.linkedin.com/in/tom-duffy-cfa-cfp/

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (3:03) Independent sponsor market growth and saturation concerns (7:25) Fee structures and long-term partnership benefits with TIFF (10:54) Diligencing managers and alignment of interests (15:57) Opportunities for non-pedigree sponsors and market state (21:41) Closing remarks