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Origination

Definition

Origination is the practice of finding and winning new deal mandates — either sell-side engagements for investment banks, or acquisition opportunities for private equity firms. In the lower middle market, origination is heavily relationship-driven, involving systematic coverage of referral sources, sponsors, and business owners.

Context

Origination is a foundational function explored throughout Deal Sourcery. In Ep. 23, Chris Reilly details VRA Partners' multi-channel origination model: COI referrals (primary), sponsor coverage (secondary), and direct outreach to business owners (tertiary). Chris leads a dedicated three-person origination team — a relatively sophisticated setup for a boutique bank. The role of the origination professional has evolved from "teaser gatherers" to execution-experienced practitioners who bring genuine market intelligence and thematic ideas.

In Ep. 20, Jake Colognesi provides the growth equity buyer's perspective on origination. At Mamba Growth, everyone sources — there is no dedicated BD team. Jake favors the hybrid model (source + execute) and argues that origination effectiveness starts with a tightly defined investment lens. He also highlights that LPs rank origination capability as a top diligence criterion.