Capital raise · Wealth Advisors & RIAs

Wealth Advisors & RIAs Co-Investment Rights: An Independent Sponsor's Counsel

Independent sponsor counsel for wealth advisors and RIAs, focused on Co-Investment Rights and the deal mechanics that protect sponsor economics and LP alignment.

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

Co-Investment Rights on wealth advisors and RIAs deals is one of those workstreams that looks routine on a checklist and decides outcomes in practice.

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 Co-Investment Rights actually gets structured.

  1. Define co-invest rights pro-rata to the LP's deal commitment.

  2. Build a 30-day decision window so the deal does not stall.

  3. Limit co-invest fees and carry, if any, to reflect the relationship value.

  4. Document the right in the LPA, not in a side letter.

  5. In wealth advisors and RIAs, layer in negative consent process timed with regulators as part of the Co-Investment Rights workstream.

The common mistake

Granting unlimited co-invest. The next LP finds out and your firm economics suffer.

Jason's take
"Co-investment is a privilege you give to the LPs you want to keep. Define it accordingly."
Jason Powell · Co-Investment Rights
Capital after close

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

After close, the call list for refinancing, recapitalization, and growth equity gets short and known. Jason carries that list.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
TALK TO JASON

An LOI on the desk, a wealth advisors and RIAs target, and a Co-Investment Rights question worth a real conversation.

Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.