Management Fee Structuring.
The annual fee paid by the deal entity to the independent sponsor for ongoing oversight, board service, and platform support.
How Management Fee Structuring actually gets done.
Set the fee at 2 percent of invested capital, stepping to 1.5 percent after year three.
Carve out portfolio-company services so add-on diligence is reimbursable.
Allow accrual if cash flow does not support payment, with later cash catch-up.
Make the fee subordinate to debt service, not to LP preferred return.
Pricing the fee on enterprise value instead of invested capital. EV-based fees punish you on the first add-on.
"The management fee pays for the firm. Underprice it and you will run a hobby, not a platform."Jason Powell · Management Fee Structuring
25 industries with Management Fee Structuring pages.
Healthcare Services
roll-up of physician practices and ancillary service lines
Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
Precision Manufacturing
platform plus tuck-in machine shops or aerospace-qualified shops
Vertical SaaS
platform plus adjacent module acquisitions inside a single end-market
B2B Services
recurring revenue service platform with bolt-on operators
Logistics & Distribution
regional acquisitions of brokerages, 3PLs, and last-mile operators
Specialty Distribution
vertical buy-up of niche product distributors
Food & Beverage
CPG roll-up or co-packing platform with regional bolt-ons
Multi-Unit Restaurants
franchisee roll-up or regional concept acquisition
Auto Aftermarket
service-center or specialty-shop regional roll-ups
Aerospace & Defense
tier-two or tier-three supplier consolidation with certifications as moat
Industrial Services
regional consolidation of plant maintenance, specialty contracting, or rentals
Building Products
regional manufacturer or specialty distributor consolidation
Specialty Construction
trade-specific buy-ups (roofing, mechanical, electrical, fire protection)
Insurance Brokerage
regional retail agency roll-ups
Wealth Advisors & RIAs
RIA aggregation or wealth platform roll-up
Veterinary Services
general or specialty practice roll-up under an MSO
Dental Practice Management
DSO buy-up under an MSO
Education & Training
private school, training academy, or B2B training platform consolidation
Marketing Agencies
specialty agency or holdco platform with bolt-ons
IT Services & MSPs
MSP platform with regional or vertical-specific bolt-ons
Cybersecurity Services
MSSP or specialty consulting platform
Energy Services
regional oilfield service or renewable services consolidation
Waste & Recycling
regional hauler or transfer station consolidation
Specialty Chemicals
niche formulator or contract manufacturing buy-up
Talk to Jason about Management Fee Structuring.
Twenty minutes of practitioner-grade input from a securities attorney built for the independent sponsor model.