Wealth Advisors & RIAs Deals: Management Fee Structuring Done Right
When the deal is wealth advisors and RIAs and the question is Management Fee Structuring, the structure decisions in the first 30 days outlast the next five years. This is where Jason Powell works.
An independent sponsor closing wealth advisors and RIAs transactions in the $10M to $180M EV range has a defined set of moves at the Management Fee Structuring stage. Most of them are not in a generic M&A textbook.
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.
How Management Fee Structuring actually gets structured.
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.
In wealth advisors and RIAs, layer in negative consent process timed with regulators as part of the Management Fee Structuring workstream.
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
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.
Related deal pages.
LOI Negotiation for Wealth Advisors & RIAs
The 4 to 8 page agreement that frames the deal economics, exclusivity, and diligence period.
Independent Sponsor Economics for Wealth Advisors & RIAs
The package of deal-by-deal carry, management fees, and transaction fees that compensates the independent spo…
Equity Rollover for Wealth Advisors & RIAs
The portion of seller proceeds reinvested into the post-close entity, aligning seller with buyer.
Earnout Structures for Wealth Advisors & RIAs
Deferred purchase price contingent on post-close performance, used to bridge buyer-seller valuation gaps.
Management Fee Structuring for Healthcare Services
roll-up of physician practices and ancillary service lines
Management Fee Structuring for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
Bring the wealth advisors and RIAs deal. Get Management Fee Structuring done right.
Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.