Solo Sponsor: 5 Deals & 2 Exits
Steven McGrath went from closing deals at billion-dollar family offices to becoming a solo independent sponsor headquartered in a LEGO-strewn basement. He proudly calls his first platform "Apollo 13", a near-impossible mission where he delivered 1x+ MOIC despite 3 Black Swans. Now, after 5 deals and 2 exits, he reflects on his journey as a lean, entrepreneurial, and disciplined sponsor.
In 2016, when his family office employer suddenly exited private equity in the midst of a deal, Steve worked with the seller to re-sign the LOI and thus launched Level Capital Partners from his home office, surrounded by LEGO and uncertainty.
That first deal, Care Plus, became a war story he now calls his "Apollo 13." Over its holding period, the business faced 3 Black Swans: a whistleblower claim, COVID, and treacherous legislation. Despite these headwinds, Steve delivered a 1x+ MOIC, which he credits to a small recruiting arm which became the unexpected engine behind the successful exit.
Since then, Level Capital Partners has executed 4 more platforms. Steven has intentionally avoided adding a co-founder, citing misaligned economics and personal risk tolerance as key reasons. Instead, he operates lean. He processes payroll, manages early diligence, and even plays ad hoc IT support for his small team.
His playbook grows companies organically without relying on leverage or add-ons. In one platform, Affirmative, he turned a $2.7 million revenue business into a $6 million ARR machine using zero debt.
Steve states that being an independent sponsor is more than finance, it's entrepreneurship. His journey proves that you don't need a fund or a partner to win in private equity, you just need to get the first deal done and never stop building.
Check today's new episode of the Minds Capital Podcast.
Keep reading
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.
Quadruple EBITDA in 3.5 Years, Then Exit at 14x
Former theater director Cory Sandrock explains how independent sponsorship is just stagecraft in a different suit: cast great people, raise funds for each production, and deliver standout performances. Cory shares how he struck gold in home services, why he avoids herd behavior in crowded sectors, and how leaning in on terms like turning off fees or yielding economics attracts the right partners and builds long-term value.
