Follow On Acquisition Terms for Sponsor

investor profile

July 18, 2023

by an investor in New York, NY, USA

We are looking at a follow-on acquisition, which is materially larger than our original acquisition. We will need to raise incremental equity capital from our existing investors as an independent sponsor / self-funded deal.

I was curious what is typically "market" for sponsor economics for a follow-on deal? We'd anticipate creating incremental carry for the additional equity capital raised (same % as initial structure), but is it realistic to have a deal closing fee for an add-on?

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