Find out what a Private Equity Sponsor is

A sponsor is someone who provides the capital and know-how to finance a product or activity, with the prospect of a future return on investment.

The sponsor can take many forms, including a bank or other financial entity, or a wealthy individual or group.
Sponsors often provide the initial capital required to develop a project, while others provide products and services such as public relations, real estate and technical assistance.

Many private equity sponsors invest in unlisted or start-up companies, becoming directly involved in the management of the business and providing additional funding over time.

Sponsors expect a significant return through their investment or through a cash return on the company's liquidation.