Pushed Out by Anchor Investor
Neal recounts the moment his anchor investor retraded him at the five-yard line of a $7m EBITDA acquisition. The terms were gutted, leaving only a 2% closing fee. No management fee, no carry, no long-term involvement. The shock was real. But instead of burning the bridge, entering litigation, or walking away empty-handed, Neal took the deal. It gave him a track record, credibility, and sufficient capital to keep searching.
To avoid being blindsided again, Neal now builds leverage by running parallel investor processes. He secures signed term sheets before disclosing capital partners to sellers. He demands IC approval before advancing diligence. He calls other sponsors for references and expects the same from capital providers. Trust is essential, but so is structure.
Forged Capital screens 5,000 deals annually. 90% are discarded immediately, 50 IOIs are submitted per year, and 5 LOIs lead to 1-2 closings. They target "B assets," companies with gaps they can fix. Operational value creation, not leverage, drives returns.
Neal Doshi is part of the Independent Sponsor Alliance, a peer group. Quarterly Zoom meetings have helped him vet capital partners, pressure-test theses, and swap notes on industry trends. It reflects the deeper benefit of the independent sponsor model: flexibility, collaboration, and autonomy.
Check today’s new episode of the Minds Capital Podcast.
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24 Add-Ons in 24 Months
Luis Reyes, an exited SaaS founder, is building a fire safety market leader in Spain through full-time focus on operations and rapid M&A with 24+ acquisitions in just 24 months. Assembling a mosaic of micro-targets, the platform now generates €8m in EBITDA, with industry-leading efficiency stemming from Luis' consulting background and AI-first mindset. Fun fact (or maybe not so fun...): Luis grew up in rural Mexico and got his first pair of shoes at age 5.
20x MOIC After Decade-Long Hold
David Acharya has been an independent sponsor since the great financial recession. His most notable deal, a 9.5-year investment in experiential marketing firm Impact XM, delivered an extraordinary 20x MOIC. Along the way he navigated a smooth separation from former partners, and today he chairs the Independent Sponsor Alliance, a 55-member peer network shaping best practices in the industry.
Carving Out an 8x MOIC in 3 Years
Doug Song reflects on 25 years of experience as an independent sponsor, having co-founded Prodos Capital in 2003. He explains how Prodos views co-sponsoring as a strategic path to scale, enabling experienced sponsors to take on more deals while supporting emerging talent. Doug also discusses the growing role of capital placement agents and family offices, and emphasizes why getting the first deal right is the single most important step in building a lasting independent sponsor career.
