Capital raise · Multi-Unit Restaurants

Capital Partner LPA for Multi-Unit Restaurants Independent Sponsors

When the deal is multi-unit restaurants and the question is Capital Partner LPA, the structure decisions in the first 30 days outlast the next five years. This is where Jason Powell works.

EV range $8M to $80M EV EBITDA $2M to $14M Audience Independent Sponsor
The deal context

An independent sponsor closing multi-unit restaurants transactions in the $8M to $80M EV range has a defined set of moves at the Capital Partner LPA stage. Most of them are not in a generic M&A textbook.

The typical multi-unit restaurants platform sits at $8M to $80M EV with EBITDA in the $2M to $14M range. The thesis runs on franchisee roll-up or regional concept acquisition. The franchisor consent letter is the deal. Get it lined up before you spend money on diligence.

The moves

How Capital Partner LPA actually gets structured.

  1. Anchor on a 20 percent carry above an 8 percent preferred return, 50/50 catch-up.

  2. Build a one-vote, one-LP majority for any waterfall change.

  3. Define key-person and removal-for-cause provisions narrowly.

  4. Make distributions quarterly, with an annual true-up against the waterfall.

  5. In multi-unit restaurants, layer in franchisor LOI letter requested before market as part of the Capital Partner LPA workstream.

The common mistake

Reusing a fund LPA template for a deal-by-deal structure. The economics, governance, and waterfall need to be different.

Jason's take
"The LPA outlives the deal. Draft it like the next ten deals will be governed by the same paper."
Jason Powell · Capital Partner LPA
Capital after close

The deal is one thing. The capital that opens up after close is another.

The capital that opens up post-close, from refinancing to growth equity to strategic exit, runs through a small set of Wall Street relationships. That network is built in.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
ENGAGE THE PRACTICE

Capital Partner LPA for Multi-Unit Restaurants, on independent sponsor terms.

Independent sponsor counsel that already speaks fluent deal-by-deal economics, structures clean LPAs, and travels with capital markets relationships for what comes after close.