New State Adds Non-Control Strategy as Independent Sponsor Market Scales

New State Capital Partners has launched Forge Select, a new non-control investment strategy focused on partnering with independent sponsors.

The new strategy builds on New State’s long-standing presence in the independent sponsor market and is designed to provide non-control capital while allowing sponsors to retain ownership and positioning, alongside access to the firm’s operating resources and market relationships. Forge Select reflects the continued institutionalization of the independent sponsor sector, as increasingly experienced investors pursue deal-by-deal investing while building scalable platforms.

David Blechman founded New State in 2013, and the firm has been active in the independent sponsor market since its early stages, having built relationships with more than 1,000 independent sponsors and completed six transactions alongside independent sponsors.

“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. “We continue to see exponential market growth and are excited to have a team dedicated to this segment.”

The new investment strategy is led by Sanjay Gupta, senior principal. “I’m excited to have joined New State full time to lead Forge Select, after having been a senior advisor to the firm for more than seven years,” said Mr. Gupta. “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.”

Mr. Gupta has more than 20 years of private markets investment experience across primaries, co-investments and secondaries. He joins New State from Moonfare, where he served as chief investment officer, and previously held senior investment roles at UBP, CDPQ and Adveq, now part of Schroders Capital.

In addition to Mr. Gupta, John McGonigle has joined New State as a vice president and the second investment professional on the Forge Select team, after spending seven years at New York City-based Gatewood Capital focused on investing in emerging managers.

New State invests up to $100 million in senior debt, junior debt and equity in companies with EBITDA between $8 million and $40 million. The firm focuses on companies operating in the business, financial, professional and industrial services sectors.

In March 2025, New State closed its fourth flagship vehicle, New State Capital Partners Fund IV LP, with an above-target $700 million in capital. The vehicle was oversubscribed and raised in less than six months. New State manages approximately $2 billion in assets and operates offices in New Rochelle, New York, and Newport Beach, California, with a team of more than 35 professionals.