What is the best way to fund a roll-up strategy in a SaaS niche market without a stake/company (LOIs signed and ready to go)?

Speaking more of from a fundraising perspective versus sourcing the deals to a regular PE firm. Would an Angel investor/VC be more willing to fund such a venture?

 

How exactly would this ever be the case in reality (LOIs signed but no capital lined up)? I mean I guess it could happen in theory with a fundless sponsor, but those guys typically still have relationships with capital providers, with whom they have presumably been in touch before signing some LOIs.

Angels and VCs are not a good source of capital for this (probably) - way too hands on and too big of a stake within a company. Best bet is probably HNW and family offices.

 
CHItizen:
How exactly would this ever be the case in reality (LOIs signed but no capital lined up)? I mean I guess it could happen in theory with a fundless sponsor, but those guys typically still have relationships with capital providers, with whom they have presumably been in touch before signing some LOIs.

Angels and VCs are not a good source of capital for this (probably) - way too hands on and too big of a stake within a company. Best bet is probably HNW and family offices.

Thank you for the response. We have partnerships with other capital partners but they do not co-invest. We are looking to fund and execute the roll-up strategy ourselves versus executing target deals for other PE firms.

 
m8:
Fund of Funds that have Co-Investing capabilities could be interested in this, as these groups tend to back fundless sponsors.

What do you mean by "without a stake/company"?

We are merchant bankers and have had capital partners in the past fund individual deals. However, for this opportunity, we want to raise the capital to benefit from the upside.

 

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