Sponsor

Entities that provide support during transactions within the financial services industry. Sponsors can invest in private companies, raise funds, underwrite mutual funds or exchange-traded funds, and may also guide companies through initial public offerings (IPO). A sponsor is usually considered the lead underwriter or organizer in a funding round deal. For instance, venture capital firms are sponsors that invest in private companies through early funding rounds.

In real estate, sponsors are an individual or company that sources, acquires and manages property on behalf of a partnership. 

Typically, sponsors invest anywhere from 5-20% of the total required equity capital and raise the remaining funds. In a limited liability company or a limited partnership, the sponsor usually acts as the General Partner or manager.