Support for emerging sponsors launching alternative investment offerings – Sponsor Growth Solutions.

Key Criteria for Vetting Emerging Sponsors

While the potential rewards are compelling, evaluating emerging sponsors to mitigate risk is critical.
Here are the several criteria to consider:

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    Audited or Transparent Financials:

    An emerging sponsor may not have audited financials but their financial statements should demonstrate financial health and operational transparency.

    What to Look For: Clear documentation of revenues, expenses, and capital management practices. Financial stability is a must for any sponsor entering the retail channel.

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    Track Record of Raising Capital:

    Even if a sponsor is new, their leadership team may have prior experience in successfully raising and managing capital.

    What to Look For: A history of raising capital for similar projects or a leadership team with verifiable expertise in capital markets. 

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    Strong Distribution Partners:

    Emerging sponsors need robust relationships that national accounts professionals and wholesalers can provide to gain traction in the retail channel.

    What to Look For: Evidence of established distribution partnerships and a strategic plan for scaling their reach through broker-dealers, financial advisors, and RIAs. 

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    The Team They’ve Assembled:

    The sponsor’s team is one of the most critical indicators of their potential for success.

    What to Look For: A team with diverse expertise, including experience in asset management, acquisitions, compliance, and investor relations. Leadership with a mix of industry veterans and fresh talent is often a good sign. 

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    Third-Party Due Diligence Reports:

    Reputable sponsors invest in third-party due diligence reports to build trust with broker-dealers and advisors.

    What to Look For: Comprehensive reports from reputable due diligence firms that assess the sponsor’s health, product structure, operational practices, and overall credibility.

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    Clear Value Proposition:

    Emerging sponsors must articulate what differentiates them from larger players.

    What to Look For: A compelling value proposition highlighting unique market opportunities, innovative strategies, or differentiated offerings.

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Support for emerging sponsors launching alternative investment offerings – Sponsor Growth Solutions.

“Working with Sponsor Growth Solutions, Heidi, and her team has been such a positive experience. Their professionalism, creativity, and dedication make every project seamless and successful. They truly go above and beyond to deliver results and make collaboration effortless.”