Definition - What does Fundless Sponsor mean?
Divestopedia explains Fundless Sponsor
Another type of fundless sponsor is a search fund. A search fund is a group or individual that has raised a small amount of capital from investors to "search" for an acquisition target. The search fund will identify and negotiate a transaction with a target, and then investors will be invited to participate in the the transaction and make up the balance of the capital required to close. Search funds, like fundless sponsors, represent a low probability option for companies looking for a clean and quick transaction.
Join thousands of others with our weekly newsletter