Solo Sponsor Success: 5 Deals & 2 Exits | Steven McGrath
Steven McGrath's journey from family office exec to solo independent sponsor with 5 deals and 2 exits, building companies with zero debt and entrepreneurial grit.
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.
More recent episodes
How to Build an Investor Database of 4,000 HNWIs
Jay Fuquay of Trinity Investors shares how they built a 4,000-person HNWI database and what traits define top-performing independent sponsors.
How to Build an Indy Sponsor Team Before Chasing Deals
Edward Crawford of Coltala Holdings shares how he raised capital, built a real team, and applied KPI-driven systems before sourcing deals as an indie sponsor.
From Searcher to Independent Sponsor to $225m Fund
Alex de Pfyffer and Ross Porter of Heritage Holdings reveal how they grew from searchers to sponsors to fund managers, achieving 99% IRR across 6 platforms.