Capital raise · Deal Workstream

Search Fund to Independent Sponsor Conversion.

Restructuring a search fund's committed capital model into an independent sponsor's deal-by-deal capital model.

The moves

How Search Fund to Independent Sponsor Conversion actually gets done.

  1. Reset economics: traditional 25 percent carry tranches do not translate cleanly to deal-by-deal.

  2. Renegotiate investor rights so single-deal commitments do not carry fund-style governance.

  3. Document the conversion with new entity formation, not just an amendment.

  4. Refresh the cap table to reflect deal-specific co-investment, not pooled fund commitments.

The common mistake

Trying to convert mid-search. The original investors expect their committed-capital economics; the conversion has to be deliberate and consensual.

Jason's take
"Search and independent sponsor look similar from outside and are different inside. Convert with paper, not assumption."
Jason Powell · Search Fund to Independent Sponsor Conversion
Search Fund to Independent Sponsor Conversion across industries

25 industries with Search Fund to Independent Sponsor Conversion pages.

$15M to $120M EV

Healthcare Services

roll-up of physician practices and ancillary service lines

$8M to $80M EV

Home Services

regional roll-ups of HVAC, plumbing, and electrical operators

$10M to $150M EV

Precision Manufacturing

platform plus tuck-in machine shops or aerospace-qualified shops

$10M to $200M EV

Vertical SaaS

platform plus adjacent module acquisitions inside a single end-market

$8M to $90M EV

B2B Services

recurring revenue service platform with bolt-on operators

$12M to $140M EV

Logistics & Distribution

regional acquisitions of brokerages, 3PLs, and last-mile operators

$10M to $100M EV

Specialty Distribution

vertical buy-up of niche product distributors

$10M to $120M EV

Food & Beverage

CPG roll-up or co-packing platform with regional bolt-ons

$8M to $80M EV

Multi-Unit Restaurants

franchisee roll-up or regional concept acquisition

$8M to $90M EV

Auto Aftermarket

service-center or specialty-shop regional roll-ups

$15M to $200M EV

Aerospace & Defense

tier-two or tier-three supplier consolidation with certifications as moat

$10M to $130M EV

Industrial Services

regional consolidation of plant maintenance, specialty contracting, or rentals

$10M to $150M EV

Building Products

regional manufacturer or specialty distributor consolidation

$8M to $110M EV

Specialty Construction

trade-specific buy-ups (roofing, mechanical, electrical, fire protection)

$10M to $150M EV

Insurance Brokerage

regional retail agency roll-ups

$10M to $180M EV

Wealth Advisors & RIAs

RIA aggregation or wealth platform roll-up

$8M to $100M EV

Veterinary Services

general or specialty practice roll-up under an MSO

$10M to $130M EV

Dental Practice Management

DSO buy-up under an MSO

$8M to $90M EV

Education & Training

private school, training academy, or B2B training platform consolidation

$5M to $80M EV

Marketing Agencies

specialty agency or holdco platform with bolt-ons

$8M to $100M EV

IT Services & MSPs

MSP platform with regional or vertical-specific bolt-ons

$10M to $130M EV

Cybersecurity Services

MSSP or specialty consulting platform

$10M to $140M EV

Energy Services

regional oilfield service or renewable services consolidation

$12M to $150M EV

Waste & Recycling

regional hauler or transfer station consolidation

$15M to $200M EV

Specialty Chemicals

niche formulator or contract manufacturing buy-up

Work with Jason

Talk to Jason about Search Fund to Independent Sponsor Conversion.

Twenty minutes of practitioner-grade input from a securities attorney built for the independent sponsor model.