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Eric Wills (@investlinq)
3 months ago
17 Views

For the growing number of people interested in allocating funds to or participating in private equity, it has been historically difficult to do - especially in the lower middle market. High net worth individuals and family offices find it difficult to identify the right investment opportunities that meet specific investment criteria, retail investors find access limited to compelling opportunities and, on the other side of the ledger, independent/fundless sponsors or search funds find it difficult to raise the needed equity and debt capital to quickly close a deal. The default mode of operation (i.e., raising a dedicated fund) carries with it a myriad of inefficiencies, not least of which is persistent fees on idle capital, but also has become a formidable barrier for many would-be sponsors given the increasing difficulty to raise a fund. InvestLinQ, founded in 2023, seeks to simplify the matchmaking process between independent sponsors and capital or resource providers on a deal-by-deal basis.

Investors:

Many investors have been keenly looking for screened private equity deal opportunities. Investors interested in these co-investment opportunities also welcome custom solutions to fulfill their investment objectives, whether it be targeting specific types of sponsors, situations, industries and so on. This is where a private equity investing platform like InvestLinQ can prove invaluable. This platform helps identify transactions and other aspects that cater, in a bespoke way, to each investor. This platform can help investors regain control and align incentives while minimizing fees on committed but undeployed capital.

Lenders:

Direct lending, especially to sponsor-backed acquisitions, has exploded in popularity. While most of the options for non-traditional financing for middle-market and larger transactions has greatly expanded, the lower middle-market has not benefited quite as much given the structural complexity with sourcing smaller transactions. The InvestLinQ platform can greatly aid the connectivity between these two groups by forming a central repository for each. Additionally, InvestLinQ can help the initial screening of opportunities to ensure better alignment between the lending criteria and the specific transaction.

Operators:

Private equity-backed companies need experienced executives who bring value and experience to the table. A bench of these experts allows companies to function seamlessly. Historically, this group of professionals has existed in a loose network seeking opportunities in an ad hoc way. The InvestLinQ platform takes a more systematized approach to pairing operators with specific opportunities that fit their competencies and objectives. The lower middle-market is a broad and difficult landscape to navigate. InvestLinQ aims to simplify the ecosystem and bring together the various pieces of the puzzle needed to do great but small deals.

About InvestLinQ:

InvestLinQ is a private equity investing platform that links debt and equity capital providers with pre-screened, sponsor-led investment opportunities. Giving investors streamlined and direct access to opportunities on a deal-by-deal basis and giving independent sponsors access to capital, expert operators and advisors.

Find all the details at https://investlinq.com/

Original Source: https://bit.ly/3HAZqUC

#independentsponsors