Best Structure for Investing in Independent Sponsor Deals?

I’m a foreign investor and I’ve set up a foreign entity that owns a U.S. C Corp as a blocker corporation for my investments. Now, I’m considering the best way to structure future investments in independent sponsor deals and weighing two options:

1. Direct Investment via the C Corp – The C Corp would invest directly in deals. This keeps things simple and reduces administrative costs, but it may limit my flexibility. If I ever need liquidity or want to exit a deal, I might be restricted by transfer restrictions requiring consent from other investors or the sponsor.

2. Setting Up an LLC Below the C Corp for Each Deal – The C Corp would own a separate LLC for each investment. While this adds administrative effort and cost, it could provide more flexibility. If I wanted to exit, I could potentially sell the LLC along with my interest in the deal rather than needing approval to transfer my stake.

Given that my typical investment range is $10K–$25K, with occasional $50K investments, I’m trying to balance flexibility with efficiency.

For those with experience in structuring investments:

- What are the key considerations when choosing between these two structures?

- How do you weigh administrative costs vs. exit flexibility

- Have you encountered challenges with selling interests in direct investments?

Would appreciate any insights—thanks in advance!