New State Launches Forge Select to Tap Independent Sponsor Boom

NEW ROCHELLE, NY – January 26, 2026 – New State Capital Partners, a private equity firm specializing in the lower middle market, today announced a significant strategic expansion with the launch of Forge Select. This new, dedicated platform is designed to provide non-control capital to independent sponsors, a rapidly growing segment of the private equity ecosystem. To lead the initiative, the firm has brought on private markets veteran Sanjay Gupta as a Senior Principal, with John McGonigle joining as a Vice President.

The move formalizes New State's long-standing activity in the independent sponsor arena and signals a deeper commitment to a market that is fundamentally reshaping deal-making in the lower middle market. Forge Select aims to provide flexible capital solutions that allow independent dealmakers to retain autonomy while gaining the institutional backing and resources of an established firm.

Capitalizing on a Shifting Private Equity Landscape

The launch of Forge Select arrives as the independent sponsor model is transitioning from a niche strategy to a mainstream force in private equity. Unlike traditional funds that raise blind pools of capital, independent sponsors are entrepreneurial individuals or small teams who source and negotiate acquisitions on a deal-by-deal basis before securing the necessary equity. This model has surged in popularity, driven by seasoned executives spinning out of larger firms to seek greater autonomy and by investors, such as family offices, who desire more direct oversight of their capital.

This burgeoning market, estimated to include over 1,200 active sponsors, presents a unique set of challenges and opportunities. While these dealmakers offer specialized expertise and access to proprietary deals, they often face hurdles in raising capital efficiently and establishing the credibility needed to close transactions. Forge Select is engineered to address this gap directly.

New State is no stranger to this world. The firm reports it has already cultivated relationships with more than 1,000 independent sponsors and has successfully closed six transactions alongside them. The creation of a dedicated strategy reflects a calculated decision to institutionalize this practice. "As an early participant in the independent sponsor market, we have built long-standing relationships with sponsors," said John Kim, Senior Principal at New State Capital Partners. "We continue to see exponential market growth and are excited to have a team dedicated to this segment."

By providing a reliable source of non-control capital, Forge Select allows New State to partner with these sponsors, gaining access to a diversified and often proprietary stream of investment opportunities in the lower middle market, a segment known for its potential for high returns but which can be difficult to penetrate at scale.

Strategic Hires to Spearhead the New Initiative

Underscoring the significance of this launch, New State has made two key hires with deep, relevant experience. Sanjay Gupta, who joins as Senior Principal to lead Forge Select, brings over two decades of private markets expertise. His background is notably comprehensive, spanning primary fund investments, co-investments, and secondaries. Before joining New State full-time, Gupta had already served as a senior advisor to the firm for more than seven years, ensuring a seamless integration into its culture and strategy.

His previous roles include serving as Chief Investment Officer at the digital private markets platform Moonfare and holding senior investment positions at major institutions like UBP, CDPQ, and Adveq (now Schroders Capital). This extensive experience provides him with a panoramic view of the capital-sourcing landscape and partnership structures, which will be invaluable in crafting bespoke solutions for independent sponsors.

"I'm excited to have joined New State full time to lead Forge Select," Gupta stated. "We believe independent sponsors are becoming an increasingly important part of the private equity landscape. Forge Select is an innovative strategy, purpose-built for how these sponsors operate today."

Joining Gupta is John McGonigle as Vice President. McGonigle brings nearly a decade of private equity experience, most recently from Gatewood Capital Partners. There, he spent seven years leading investments in emerging managers and helping founders build out their institutional platforms. His hands-on experience in nurturing nascent investment groups aligns perfectly with the needs of independent sponsors who are often in the process of scaling their operations from a deal-by-deal model to a more established presence.

The 'Non-Control' Advantage: A New Partnership Blueprint

The core of the Forge Select strategy lies in its "non-control" investment approach. This model represents a significant departure from traditional private equity buyouts, where the fund acquires a majority stake and assumes full control of the company. Instead, Forge Select will take minority positions, providing essential capital while leaving the independent sponsor and existing management in the driver's seat.

This structure is highly attractive to independent sponsors for several reasons. Chief among them is the ability to "preserve sponsor attribution." This means the independent sponsor retains the credit and track record for sourcing, executing, and managing the investment—a critical factor for building their reputation and securing future deals. It allows them to maintain their entrepreneurial identity without being overshadowed by their capital partner.

Beyond capital, the partnership offers access to New State's institutional infrastructure, including its operating resources and broad network of market relationships. This combination of capital, credibility, and strategic support empowers independent sponsors to compete more effectively for deals and create greater value post-acquisition.

From New State's perspective, the non-control model provides a scalable way to deploy capital across a wider array of companies, leveraging the sector-specific expertise of its sponsor partners without taking on the full operational burden of a control investment. It creates a symbiotic relationship where the sponsor gains the backing needed to succeed, and New State gains access to curated investment opportunities managed by motivated, expert partners.

With approximately $2 billion in assets under management and a history of more than 45 investments, New State has built a reputation as a nimble and collaborative partner. Forge Select extends this philosophy, applying the firm's disciplined, partnership-oriented approach to a dynamic and expanding corner of the market. The strategy will focus on businesses with strong recurring revenue potential and EBITDA of $8 million or more, ensuring it aligns with New State's core investment discipline while providing a powerful new growth engine for the firm and its partners.