Former operating executives are increasingly teaming up with private equity firms to identify smaller niche opportunities. : Independent sponsors are emerging as uniquely positioned participants in the low to middle market, according to industry experts. The term independent sponsor typically refers to an individual with industry experience who partners with a traditional PE or other capital provider to invest. They raise capital on a deal-by-deal basis. Not only are they helping dry powder find a home, independent sponsors also diffuse the risk of having to find equity for transactions by establishing relationships with capital providers.