Hi
The term "financial sponsor" is loosely thrown around in M&A / Private Equity Corporate practice. While I have understood that a financial sponsor does NOT refer to the lender/borrower in the Banking/Finance PA or have I got that wrong?), Can some one please clarify if a financial sponsor ALWAYS refers to the buyer (the guy who has money, including from leverage) in a PE/M&A transaction (such as PE general partners/limited partners/institutional investors?) or to both buyer & sellers? Or is it only relevant in a PE context and not for M&As ?
Thanks.
The term "financial sponsor" is loosely thrown around in M&A / Private Equity Corporate practice. While I have understood that a financial sponsor does NOT refer to the lender/borrower in the Banking/Finance PA or have I got that wrong?), Can some one please clarify if a financial sponsor ALWAYS refers to the buyer (the guy who has money, including from leverage) in a PE/M&A transaction (such as PE general partners/limited partners/institutional investors?) or to both buyer & sellers? Or is it only relevant in a PE context and not for M&As ?
Thanks.
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