Minds Capital Podcast Solo Sponsor: 5 Deals & 2 Exits
Jun 4, 2025
Steven McGrath, founder of Level Capital Partners and a solo independent sponsor, shares his inspiring journey from managing high-stakes deals at family offices to launching his own ventures in a LEGO-filled basement. He recounts tackling tough deals like Care Plus amidst unforeseen challenges such as regulatory scrutiny. The discussion also covers innovative strategies for target acquisition, navigating fintech investments, and the impressive growth he's achieved in the risk management sector. McGrath emphasizes resilience, adaptability, and the power of strong investor relations.
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Starting as an Independent Sponsor
- Steve McGrath started as an independent sponsor by quitting his private equity job when his employer abandoned a deal he liked.
- He raised capital independently, preserving the deal and launching his new firm, Level Capital Partners.
Adversity Elevates Sponsors
- Deals rarely go as planned; adversity is inevitable in entrepreneurial private equity.
- Emerging well from tough deals can actually enhance a sponsor's reputation with investors.
Secure Deal Before Quitting Job
- If intending to pursue independent sponsorship, find a deal before quitting your job.
- Build trust and relationships with potential companies in advance to ease your transition.