Independent Sponsor Capital Partner LPA in Precision Manufacturing
Securities and M&A counsel for independent sponsors drafting precision manufacturing transactions, from LOI to close to the capital markets that open up afterward.
Capital Partner LPA on precision manufacturing deals is one of those workstreams that looks routine on a checklist and decides outcomes in practice.
The typical precision manufacturing platform sits at $10M to $150M EV with EBITDA in the $2.5M to $25M range. The thesis runs on platform plus tuck-in machine shops or aerospace-qualified shops. Most precision manufacturing sellers will not sign an LOI without a known capital partner already named.
How Capital Partner LPA actually gets structured.
Anchor on a 20 percent carry above an 8 percent preferred return, 50/50 catch-up.
Build a one-vote, one-LP majority for any waterfall change.
Define key-person and removal-for-cause provisions narrowly.
Make distributions quarterly, with an annual true-up against the waterfall.
In precision manufacturing, layer in AS9100 succession plan as a closing condition as part of the Capital Partner LPA workstream.
Reusing a fund LPA template for a deal-by-deal structure. The economics, governance, and waterfall need to be different.
"The LPA outlives the deal. Draft it like the next ten deals will be governed by the same paper."Jason Powell · Capital Partner LPA
The deal is one thing. The capital that opens up after close is another.
The capital that opens up post-close, from refinancing to growth equity to strategic exit, runs through a small set of Wall Street relationships. That network is built in.
Related deal pages.
LOI Negotiation for Precision Manufacturing
The 4 to 8 page agreement that frames the deal economics, exclusivity, and diligence period.
Independent Sponsor Economics for Precision Manufacturing
The package of deal-by-deal carry, management fees, and transaction fees that compensates the independent spo…
Management Fee Structuring for Precision Manufacturing
The annual fee paid by the deal entity to the independent sponsor for ongoing oversight, board service, and p…
Equity Rollover for Precision Manufacturing
The portion of seller proceeds reinvested into the post-close entity, aligning seller with buyer.
Capital Partner LPA for Healthcare Services
roll-up of physician practices and ancillary service lines
Capital Partner LPA for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
Bring the precision manufacturing deal. Get Capital Partner LPA done right.
Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.