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?

