How to Build Relationships That Compound | David Acharya | Matthew Piwko

How do independent sponsors build successful private equity businesses without committed capital? And how can relationship management, CRM systems, automation and AI create a competitive advantage? In this episode of The Relationship First Sponsor, host Matthew sits down with David Acharya, founder of Acharya Capital Partners, to discuss his journey through investment banking, private equity and the independent sponsor model. David shares practical lessons from building and growing businesses, navigating the challenges of independent sponsorship, and generating investment opportunities through long-term relationships. He also explains how he built a Salesforce-based CRM to manage deal sourcing, investor relationships and institutional knowledge, and how automation and emerging AI technologies could make these processes more efficient. The conversation also explores the importance of conservative capital structures, effective leadership, organizational culture, networking and the patience required to build a successful investment business. In this episode, we cover: The independent sponsor model and how it differs from traditional private equity funds The financial and personal realities of starting an independent sponsor firm Deal sourcing, investor relationships and relationship-driven business development Building a CRM system that supports deal flow and preserves relationship history Using automation and AI to reduce administrative work The role of conferences and professional networks in finding investment opportunities Lessons from a successful investment, including capital discipline and management decisions Leadership, company culture and knowing when to make difficult personnel decisions David Acharya is the founder of Acharya Capital Partners, a New York-based private equity firm operating under the independent sponsor model. The firm focuses on small buyouts in technology, media and telecommunications (TMT), business marketing services, and light manufacturing, with a buy-and-build approach to value creation. If you work in private equity, M&A, investment banking, business development or AI-enabled business operations, this conversation offers practical insights into building relationships, improving processes and making better investment decisions. Subscribe to The Relationship First Sponsor for more conversations with investors, dealmakers and business leaders. CHAPTERS 00:00 — Introduction: The realities of independent sponsorship 00:35 — Meet David Acharya and Acharya Capital Partners 01:24 — From investment banking to private equity 04:38 — Why David moved into private equity 07:59 — Discovering the independent sponsor model 09:54 — Building Acharya Capital Partners 14:04 — Navigating COVID and managing portfolio companies 17:03 — A major investment turnaround and exit 20:38 — The challenges of the independent sponsor model 23:00 — Financial runway and preparing for entrepreneurship 25:03 — The realities behind the independent sponsor business 27:22 — How sellers and intermediaries view independent sponsors 29:37 — Capital raising, investor alignment and the evolving model 31:01 — Why the independent sponsor model is gaining acceptance 32:41 — Compensation, carried interest and investment alignment 34:04 — Relationship management as a competitive advantage 35:49 — From technical skills to relationship building 36:51 — Learning to source deals through conferences 37:14 — Building and maintaining a relevant professional network 39:27 — Why private equity firms need a CRM 40:57 — Designing a Salesforce CRM for independent sponsors 42:37 — Managing city visits, contacts and relationship history 43:52 — The problem with spreadsheet-based deal management 44:59 — Building a CRM around real investment workflows 46:49 — Connecting AI and automation to CRM systems 47:52 — Reducing CRM maintenance through automation 48:35 — How AI could change private equity workflows 50:00 — Using technology to focus on deals, not administration 51:17 — Professional organizations and the value of networking 53:06 — Why in-person conferences still matter 55:27 — Building relationships that lead to investment opportunities 57:09 — How a chance conversation led to a major investment 58:39 — The importance of relationships in finding deals 59:01 — Why conferences can help grow an investment business 01:00:59 — Lessons from a major investment success 01:04:57 — Conservative debt and resilient capital structures 01:06:45 — Hiring, leadership and company culture 01:08:16 — Managing people and making difficult decisions 01:10:00 — Book recommendation: Lloyd Blankfein and financial history 01:10:32 — Learning new technologies and using AI 01:11:53 — A familiar tool from traditional finance: the HP 12C 01:12:26 — A common leadership mistake and knowing when to move on 01:13:20 — Closing remarks #PrivateEquity #ArtificialIntelligence #IndependentSponsors #DealSourcing #BusinessStrategy