01 · FROM THE FOUNDER
Welcome to The Independence Brief
Independence is the reason most of you started your firms. You wanted to serve clients your way, build something that reflects your values, and own the outcome. Protecting that independence as your firm grows, and as you plan for what comes next, is why we started Spruce Rock Capital.
Spruce Rock provides debt capital and minority equity to RIA and wealth management firms with $500M–$5B in AUM. We work with founders and leadership teams who want capital to fund acquisitions, finance succession, buy out partners, or invest in growth without giving up control of the firm they built.
That choice matters more than ever. RIA M&A had its strongest first half on record in 2026, with 167 announced transactions, and roughly 90% of sellers went to a private equity firm or a PE-backed buyer. Consolidation is one path forward. It shouldn't be the only one.
We created The Independence Brief to give owners and their advisors a clear, data-driven view of what's happening in the market: deal activity, valuation trends, capital structures, and the strategies that are working for firms that choose to stay independent. Each month we'll share what we're seeing firsthand and what it means for your firm.
Thank you for reading. If a topic would be useful to you, reply and let us know.
Chris JewettFounder & CEO, Spruce Rock Capital
02 · TRANSACTION OF THE MONTH
$300M
AUM acquired
at ~10x EBITDA
SRC provided financing for an RIA to acquire $300 million in assets under management (AUM). The transaction was completed at an approximate valuation of 10x EBITDA, with the seller remaining involved for three years to support the transition of clients and the business. The acquisition helped propel the buyer to $1 billion in AUM and represented the buyer's first acquisition. SRC will continue to support the borrower’s growth through strategic acquisitions.
03 · CAPITAL MARKETS INSIGHTS
RIA M&A hit 205 deals and $400.7 billion in AUM in the first half of 2026
The registered investment advisory (RIA) industry has gained popularity in the investment community with Private Equity Firms, Institutional Investors, and Family Offices recently executing acquisitions, whether majority or minority stakes for several reasons:
- 1High growth industry
- 2Exceptional profitability for well run businesses
- 3Recurring Revenue
- 4Opportunity for current income
- 5Limited to no debt on these businesses
Spruce Rock Capital is currently raising capital to address the opportunities in this industry, please reach out if you would like to learn more.
04 · GROWTH & VALUATION
Why some firms sell for more
Two firms can be the same size, serve the same clients, and work in the same market, yet sell for very different prices. The difference is how they grow.
Firms that grow more than 10% a year on their own, not counting market gains, sell for noticeably more than firms growing under 3%. For a firm earning $3M a year, that gap can be worth $3M–$4.5M at sale.
$3M–$4.5MPotential sale-value gap for a firm earning $3M a year
Buyers pay more for growth they can count on. Referrals are hard to predict, and paid leads stop when the payments stop. Technology changes that: it turns growth into a repeatable process with numbers behind it, such as where clients come from, what each one costs to win, and how many convert. That record belongs to your firm, and it makes your firm easier to value, sell, or finance while you stay independent.
Tools that help track and build growth:
CRM: Salesforce Financial Services Cloud, Wealthbox, or Redtail, to track every prospect from first contact to new client.
Marketing automation: FMG or Snappy Kraken, to run steady campaigns and show which ones bring in clients.
Scheduling: Calendly, to make booking a first meeting simple and to track how many prospects take that step.
Tools are listed as examples, not endorsements.
Source: Ian Karnell, "The Valuation Gap in RIA M&A," WealthManagement.com, Aug. 6, 2026.
05 · WEBINAR · TUESDAY, OCTOBER 20 · 1:00 PM ET · 30 MIN
Capital-ready,
integration-ready
Seven questions every advisor should be able to answer before buying a practice.
Most advisors treat capital readiness and technology readiness as two separate projects. If you plan to acquire, they go hand in hand: the practice numbers a lender asks for first — client growth, attrition, assets won and lost — are what you need to integrate a practice and to know whether it worked.
A plain conversation between a capital advisor and a technology consultant, aimed at firms planning their next acquisition. Practical answers, in language you can take straight to your team.
Aaron HaslerManaging Partner, Spruce Rock Capital
Verity LarsenVersoft Consulting
07 · RECOMMENDED RESOURCES
Resource
Buyer Prep Checklist
Email Chris →
Email Aaron →
