Capital raise · Wealth Advisors & RIAs

Capital Partner LPA for Wealth Advisors & RIAs Independent Sponsors

Securities and M&A counsel for independent sponsors drafting wealth advisors and RIAs transactions, from LOI to close to the capital markets that open up afterward.

EV range $10M to $180M EV EBITDA $3M to $25M Audience Independent Sponsor
The deal context

Wealth Advisors & RIAs deals in the lower middle market run a specific playbook. Capital Partner LPA is where the structure either holds or starts to leak.

The typical wealth advisors and RIAs platform sits at $10M to $180M EV with EBITDA in the $3M to $25M range. The thesis runs on RIA aggregation or wealth platform roll-up. Client consent process is the longest pole. Start it the day after the LOI signs.

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 wealth advisors and RIAs, layer in negative consent process timed with regulators 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.

Refinancing, recaps, growth rounds, and the right strategic conversation eighteen months early are all downstream of relationships that take years to build and minutes to use.

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

Capital Partner LPA for Wealth Advisors & RIAs, 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.