Smart Questions to ask Sponsors on Potential Deals
Curious to hear what those of you on the LP/co-GP side like to ask when you're trying to get comfortable with a new deal a sponsor brings you. Trying to build my question repository to get smarter on both sponsors and deals. I'll start with a few softballs:
Who is the seller and what is their motivation for selling?
Could you walk us through your thought process on the CapEx plan?
Are you showing this deal to other groups, and if so what was their feedback?
I think one of the primary questions should be what's the investment thesis, i.e. is this a build and grow story, consolidation, turnaround, etc.
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