Investment Strategy
Two Complementary Approaches
We deploy capital through two distinct but complementary strategies, each designed to capture different aspects of the wealth management opportunity set.
Traditional Roll-Up Exposure
Selective participation in platform consolidation opportunities where our capital and sector expertise add value beyond financial investment.
What This Means
Acquiring control or significant minority positions in RIAs or hybrid platforms, driving integration and growth, and exiting at platform multiples.
Key Considerations
- Competitive auction dynamics
- Integration complexity and cultural fit
- Extended diligence and regulatory filings
- Higher capital commitment per opportunity
Book Credit & Revenue Interest
Committed credit facilities to quality platforms, secured on advisory fee cash flows from named books. Growth capital without dilution.
What This Means
We extend credit lines that platforms draw against for specific recruiting or succession opportunities. Our economics come from a contracted share of fees on capital we help deploy.
Why Firms Choose This
- Keep full control and equity upside
- No personal guarantees required
- Only share economics on funded growth
- Speed and certainty of execution
The Logic
Why This Structure Works
The book credit approach solves a real problem for hybrid platforms. These firms have strong businesses—recurring fee revenue, sticky client relationships, capable infrastructure—but face a capital gap when it comes to growth.
Traditional bank debt typically requires personal guarantees and doesn't accommodate the intangible nature of advisory relationships. Private equity introduces dilution and potential strategic misalignment. Our structure offers a third path.
By securing capital on advisory fee cash flows at the firm level, we can fund recruiting and succession without the friction of traditional alternatives. The platform maintains control, uses existing custody and billing infrastructure, and shares economics only on growth that our capital enables.
For us, this creates a portfolio of contracted revenue interests diversified across platforms, advisors, and client households. The underlying cash flows have attractive characteristics—sticky, recurring, and supported by strong retention rates.
Comparison
Different Tools, Same Sector
| Dimension | Traditional Roll-Up | Book Credit |
|---|---|---|
| Time to Close | Months | Weeks |
| Entry Competition | High | Lower |
| Integration Effort | Significant | Minimal |
| Regulatory Complexity | Higher | Often lighter |
| Platform Diversification | Concentrated | Naturally spread |
| Value Driver | Exit multiple | Monthly yield |
Both strategies target the same sector and can be complementary. The book credit approach often provides a pipeline of relationships that may evolve into platform opportunities over time.
This overview describes our general strategic approach. Specific terms, structures, and returns vary by engagement and are subject to due diligence, documentation, and applicable regulatory requirements.