Sparring Partners Capital LLC (“Sparring Partners”) is registered with the Securities and Exchange Commission (“SEC”) as a broker-dealer. Brokerage services and fees differ, and it is important for you to understand the differences. This Client Relationship Summary provides details about our brokerage services, fees, and other important information.
Free and simple tools are available for investors to research firms and financial professionals at Investor.gov/CRS. Here, you can also find educational materials about broker-dealers, investment advisers, and investing.
What Investment Services and Advice Can You Provide Me?
Sparring Partners specializes in private placement investments, including limited partnership interest in private equity funds and securities in private companies.
- We do not monitor the performance of your investment.
- You may choose investments from our selection of products, or we may recommend investments for you to consider, but the ultimate investment decision for your investment strategy and purchase or sale of investments will be yours.
- We offer a limited selection of private placement products. Other firms could offer a wider range of choices, some of which might have lower costs.
- Investments offered through us usually have a minimum
purchase amount, which varies and is defined by the private equity fund or private company (the “Issuer”).
For additional information, please visit www.sparringpartners.com.
Conversation Starters. Ask your financial professional these questions to learn more:
- Given my financial situation, should I choose a brokerage service? Why or why not?
- How will you choose investments to recommend to me?
- What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?
What Fees Will I Pay?
- Help me understand how these fees and costs might affect my investments. If I invest $100,000, how much will go to fees and costs, and how much will be invested for me?
Sparring Partners receives a transaction-based fee upon the closing of a transaction. The fee is typically determined as a percentage of the investment amount, subject to a minimum fee, but will vary based on the product. While the issuer typically pays this fee, it forms part of the total cost of the transaction to you.
You may be required to pay additional fees to the investment advisor of private equity funds. These fees will be outlined in the private placement memorandum or other investment material.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
For additional information, please contact Sparring Partners directly.
What Are Your Legal Obligations to Me When Providing Recommendations? How Else Does Your Firm Make Money and What Conflicts of Interest Do You Have?
When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations we provide you.
- How might your conflicts of interest affect me, and how will you address them?
Here are some examples to help you understand what this means.
- We are paid a transaction fee by the Issuer upon the closing of a transaction. These fees vary by Issuer.
- Our selection of investments is limited to Issuers that have retained Sparring
Partners. In some cases, the Issuer may pay a retainer fee to Sparring Partners in addition to a transaction fee.
- We may, but are not required to, purchase (now or in the future) securities being offered, and may dispose of any such securities at any time (subject to any applicable transfer restrictions). We expect that any such purchases will be made on the same terms as other investors in the offering.
- We may in the future own or acquire interests (including stock or warrants, or a share of carried interest in a fund), or make other investments (as a limited partner or otherwise) in funds or other companies for which we act, in portfolio companies of funds, or in investors whom we solicit to make investments. We may dispose of such interests or investments at any time (subject to any applicable transfer restrictions).
- We also may invest in companies that have interests different from or adverse to those investments we offer.
- We may have provided or in the future provide investment banking services, advisory services or other services to private equity funds, private companies, and investors whom we solicit. We may have ongoing relationships (including investment banking and advisory services) with private equity funds, private companies, such investors and sponsors of funds and their portfolio companies. In addition, we may own or acquire interests or securities that are senior to, or have interests different from or adverse to, the securities that we offer.
For additional information, please contact Sparring Partners directly. Detailed conflicts of interest are disclosed to the Issuer and investor for each transaction that we facilitate.
How Do Your Financial Professionals Make Money?
Our financial professionals are compensated in cash from the fee revenues received by Sparring Partners.
Do You or Your Financial Professionals Have Legal or Disciplinary History?
- As a financial professional, do you have any disciplinary history? For what type of conduct?
For additional information about Sparring Partners or to request a copy of this relationship summary please visit www.sparringpartners.com. You may also call 212-490-2800 to request up to date information or a copy of this relationship summary.
- Who is my primary contact person? Is he or she a representative of an investment adviser or broker-dealer? Who can I talk to if I have concerns about how this person is treating me?
Warren H. Spar is the owner, principal, and CEO of Sparring Partners. Warren holds the following securities licenses: Series 7, 63, 24, and SIE. Warren has been a licensed person since 1993 and has been with Sparring Partners since 2005.