Financial sponsors are investors in the private equity sector. Organized much like fund management companies, they raise funds from institutional investors (pension funds, insurers, mutual insurance companies, sovereign wealth funds, etc.) and then invest in the capital of companies, often as part of a leveraged buyout (LBO).
In addition to providing capital, financial sponsors frequently play a role in supporting the management of the companies in which they invest. Some of the areas where sponsors get involved include financial structuring, digital transformation, internationalization or external growth.
The bank has a dedicated commercial structure for this customer segment, also known as Financial Sponsors Coverage. This unit is made up of advisory bankers and account managers from various departments – Leveraged Finance (for LBO financing), Equity Capital Markets (for IPOs of companies owned by investment funds), and Mergers & Acquisitions (for advising management companies on the purchase or sale of equity interests in companies) – and coordinates the activities of the business lines that serve this clientele.