# Sponsor

*Corporate Finance & M&A — Finicade finance glossary*

A sponsor is the private equity firm behind a buyout — the equity provider that structures the deal, appoints the board and drives the exit. The word distinguishes financial buyers from strategic ones: a sponsor buys to sell again in three to seven years, while a strategic buyer buys to keep and integrate. That difference in horizon shapes everything about how the business is then run.

**Also known as:** financial sponsor, PE sponsor

**Related terms:** [Private Equity](https://finicade.com/glossary/private-equity), [Leveraged Buyout (LBO)](https://finicade.com/glossary/lbo), [Management Buyout](https://finicade.com/glossary/management-buyout), [Dividend Recap](https://finicade.com/glossary/dividend-recap), [Roll-Up Strategy](https://finicade.com/glossary/roll-up-strategy)

Source: https://finicade.com/glossary/sponsor