I spoke to a PE firm writing $50M-100M+ checks.

Most sponsors can't pass their 3-step filter.

- A proven track record in that asset class.
- A clear execution plan and ability to execute.
- Skin in the game (10% cash in the deal).

These are deal-breakers.

If you don’t have all 3, they walk.

But if you pass, they’ll fund the whole deal.

- 75% debt
- 15% equity
- 0 co-investors

I found that last part very interesting.

They don't spread risk across a syndicate.
They take the whole deal, or they don't do it.

But here's what most sponsors don't see coming.

- There's a due diligence fee.
- Paid upfront. 0.001% of the offering size.
- It doesn't go to the firm; it goes to the DD team.

I asked why they charge a fee to deploy capital.

This is what they told me:

"If the sponsor can't front 0.001% of what they want to raise, how can they expect us to fund it? We are not their daddy."

Could your deal survive a filter this ruthless?

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