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About CapHub
What makes CapHub different from placement agents?
CapHub’s founders have spent their careers in the middle market, including as Independent Sponsors and private-equity and private-credit professionals who backed Independent Sponsors.
They have experienced the challenges Independent Sponsors face, and they built CapHub to address these pain points. As a result, CapHub provides holistic and comprehensive solutions for Independent Sponsors, not only helping raise capital but also providing access to other expertise many Independent Sponsors may have difficulty accessing.
In our capital-raising activities, we focus exclusively on capital raising for Independent Sponsors; we’re not a sell-side advisor, and we don’t raise committed funds like many placement agents.
Our founders and team have deep knowledge about the institutions who back Independent Sponsors and have spent decades cultivating relationships with them.
We know the characteristics that make an Independent Sponsor transaction attractive to institutional investors, and we use this know-how to get your deal in front of the right investors and over the finish line.
Who does CapHub work with?
CapHub works with Independent Sponsors who raise capital on a deal-by-deal basis.
We build long-term relationships and provide a full lifecycle of support from pre-LOI market reads to post-closing value-creation expertise across multiple transactions.
What is CapHub and why was it founded?
CapHub is a tech-enabled services firm founded to help Independent Sponsors in all aspects of their business.
CapHub’s founders spent their careers in the middle market, including as Independent Sponsors and private-equity and private-credit professional who backed Independent Sponsors.
They have experienced the challenges Independent Sponsors face, and they built CapHub to address these pain points.
Capital Raising
How long does the capital raising process typically take?
Every transaction is unique, depending on quality of the target’s information, the timeline demanded by the transaction, and other factors.
Some transactions can go from LOI to closing in 45 days, while others may take several months.
In every transaction, our goal is to approach the right capital providers as quickly as possible with compelling materials, then push to receive feedback as soon as practical to give you insight into the market and allow you to keep the seller informed.
Getting initial reads from the market can happen in days or may take several weeks.
What does the capital raising process look like once we engage?
We start a capital-raising process by making sure we understand what makes the transaction compelling to institutional investors.
Doing so starts with understanding what many institutional investors consider their first filters: the credibility of the Independent Sponsor, the nature of how they won the transaction, and the substance around their value-creation plan.
After that, we together develop the compelling materials to distribute to institutional investors, including a teaser, NDA/joinder, detailed memorandum on your investment thesis, financial model, and other relevant materials.
We then curate a list of institutional investors to target, and manage the deal distribution process, including driving execution of NDAs, addressing early-stage questions, and fielding calls with investors.
After receiving indications of interest, we drive competitive tension and negotiate term sheets, with the goal of optimizing capital structure and helping you choose the preferred capital providers and structure.
Along the way, we’ll coordinate calls with you and your team, management, and third-party due-diligence providers, where applicable.
During the legal-documentation process, we provide our perspective, giving our birds'-eye view of the market and help drive the transaction to closing.
When does CapHub typically get involved in a transaction?
We prefer to get involved as early as possible (and certainly pre-LOI), where we can provide you a read on the financing environment for a specific situation before you spend too much time and resources pursuing a transaction.
However, the formal capital-raising process generally doesn’t start until after you’ve secured an LOI as most institutional investors won’t dedicate much time to a transaction until they know the Independent Sponsor has won the deal.
With our early involvement, we can hit the ground running right away on the capital-raising process.
How does CapHub help Independent Sponsors raise capital?
We think of CapHub as your outsourced distribution arm, handling all aspects of the capital-raising process.
In doing so, we free you up to focus on due diligence, firm up your value-creation plan, and find your next acquisition.
We have curated a database of over 2,000 institutional investors who back Independent Sponsors, spanning family offices, aggregators and co-investors, private equity firms, junior capital investors, private credit lenders, banks, SBICs, and BDCs.
We target the right subset for your transaction, and we utilize our relationships to get focus from investors.
Throughout a capital-raising process, we use our experience in this market to help position your narrative in a compelling manner, drive a competitive process, and optimize terms and timing for you.
Fees & Engagement
How does CapHub think about Independent Sponsor economics,
including closing fees, carry, and management fees?
CapHub’s experience—including its founders’ experience over the past two decades—means that we are in a unique position to understand what “market” terms are for an Independent Sponsor transaction. While every deal is different, CapHub focuses on driving competitive tension throughout the process to secure the best terms for our clients.
Will CapHub work alongside another placement agent on the same deal?
We find it most effective to manage an entire capital-raising process and, therefore, generally do not work alongside other placement agents on a given transaction.
How does CapHub charge for capital raising services?
We charge a success fee, with nothing upfront; if the deal does not close, we do not collect a fee.
In a successful transaction, our fee is capitalized into the deal and paid at closing; it doesn’t come directly out of your pocket.
Our capital-raising fee can vary based on the nature of the transaction and is generally 2% to 3% of the capital needs.
Intellectual Capital
What is the difference between an operating partner and a river guide?
We consider an operating partner to be a seasoned industry executive who plays an active, often full-time role in due diligence and driving value-creation after close.
We consider a river guide to be seasoned industry executive who, on a part-time basis, helps with focused due diligence, provides greater credibility with the seller and capital providers, and may serve as a board member post-closing.
How does CapHub source operating partners and river guides?
CapHub has built a network of senior industry executives we have worked directly with who can act as operating partners and river guides.
We have a database of over 100,000 experts who are sector specific, and source new resources. In addition, CapHub has curated a group of channel partners that can access relevant industry executives across various industries.
Do I pay CapHub when you connect me to accountants, lawyers, or other
service providers?
No, you don’t pay CapHub directly.
If CapHub found you an operating partner or river guide from our network of executives and if the deal closes, we will be paid a fee at closing out of the overall transaction.
If one of our channel partners provides the service, neither you nor the transaction pays us; the channel partner does.
In any case, if the deal doesn’t close there’s no fee.
What does CapHub mean by "intellectual capital"?
By Intellectual Capital, we mean everything beyond the capital raise—all the various forms of expertise and experience that can help you with targeted due diligence, increase your credibility with the seller and capital providers, and plan for and drive value-creation post-closing.
Intellectual Capital includes operating partners, river guides, consultants, accountants, lawyers, and fractional executives who work specifically with Independent Sponsors.
In the near future, we will also launch an expert network as an additional channel for giving you industry-specific insight.
Working With CapHub
Does CapHub work with family offices?
Yes, CapHub knows and has relationships with numerous family-office investors.
In our capital-raising processes, we include relevant family-office investors alongside other categories of institutional investors.
Who is on the CapHub team?
CapHub's team has overseen thousands of investments across private equity, private credit, and Independent Sponsorship over the past 30 years — as company founders, deal team leaders, investment committee members, and senior executives.
Our transaction team consists of experienced deal professionals, including former private equity investors, private credit investors, investment bankers, and Independent Sponsors.
Our Intellectual Capital team is headed by an industry executive who has been a C-level executive in industry and an operating partner for a private-equity firm and an Independent Sponsor.
