Transaction Advisory, Investment Management

December 16, 2019

Succession Planning for Investment Management Firms

Succession planning has been an area of increasing focus in the RIA industry, particularly given what many are calling a looming succession crisis. The demographics suggest that increased attention to succession planning is well warranted: a full 62% of RIAs are still led by their founders, and only about a quarter of them have non-founding shareholders. Yet when RIA principals were asked to rank their firm’s top priorities in 2019, developing a succession plan was ranked last. Fortunately, there are many viable options for RIA principals looking to exit the business.

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Not All AUM Is Created Equal
Not All AUM Is Created Equal

Why Product Mix Matters in Investment Manager Valuation

Investment manager valuation depends on more than headline AUM. Fee rates, revenue durability, product-level growth, margins, and operating leverage all influence the quality of an asset base and the cash flows it can generate.
RIA Valuation Insights Blog Investment Management
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Changing Drivers
Changing Drivers

Thoughts on Compensation, Ownership, and Internal Succession

Successful RIA succession requires leadership, compensation, and ownership to evolve together over time. A gradual transition can align incentives, improve continuity, and give both senior and next-generation leaders meaningful participation in the firm’s future value.
RIA Valuation Insights Blog Investment Management
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The Sponsor Clock: What the Recapitalization Cycle Means for RIA Sellers Holding Rolled Equity
The Sponsor Clock: What the Recapitalization Cycle Means for RIA Sellers Holding Rolled Equity
Private equity sponsor timelines are bringing a new wave of recapitalizations to RIA platforms, with important implications for principals holding rolled equity. Understanding liquidity rights, valuation mechanics, and the timing of capital events can be critical to both transaction and wealth transfer planning.
RIA Valuation Insights Blog Investment Management
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