FAQ's

FAQ

Who is SkyView Partners?

SkyView Partners focuses exclusively on the financing and banking needs of independent and registered financial advisors. We provide financial advisors with guidance and capital for succession, merger, acquisition, and existing advisory loan refinancing.

SkyView Partners is comprised of financial advisory veterans and advisory loan lending specialists, who quantify the value of your RIA practice for submission to our network of RIA lenders. Our team encompasses the following:

  • Divisional Directors are our external sales representatives responsible for setting you on the right path to achieve your financing needs with SkyView.
  • Investment Banking Team is responsible for sourcing viable buyers, negotiating terms, building transaction structure and working with our Credit Team to ensure buyer, seller and RIA lender are all amenable to the transaction.
  • Relationship Managers work with loan applicants to ensure that your investment advisory loan application continues to progress seamlessly throughout the underwriting process
  • Our Credit Team is responsible for the quantitative (cash flow coverage, loan to value, etc.) and qualitative (revenue attribution, client concentration and demographics etc.) assessment of your practice.

What types of investment advisor loans does SkyView Partners offer?

SkyView Partners focuses on funding each investment advisor loan with a conventional (non-SBA), structure for succession, merger, acquisition, and preexisting seller note(s) or SBA loan refinancing. In the event that an applicant does not qualify for a conventional RIA loan, our Credit Team can pivot to a Small Business Administration (SBA) RIA loan structure.

Who are SkyView Partners’ network of RIA lenders?

SkyView Partners has a carefully selected an established network of national, regional, and community banks that have adopted a credit policy to enable them to fund investment advisor loans. SkyView vets and prepares each RIA loan applicant to determine which RIA lenders are best suited to finance your RIA acquisition strategy.

How does it work?

SkyView Partners underwrites your RIA loan request, submits a thorough credit memorandum on your behalf to our network of lenders via our digitized Lender Marketplace, each investment advisor loan applicant are paired with an RIA lender after signing a term sheet our team works for each RIA loan applicant and RIA lender to ensure that the transaction proceeds to close.

Rates, Fees & Terms

What are the rates on an advisor loan?

Investment advisory loan rates commonly vary between 5.5% and 6.75% fixed when the borrower is securing the RIA loan with a first lien position on the investment advisory practice without tangible collateral (commercial real estate, etc.).

Are there any other fees, such as origination for RIA loans?

Yes, investment advisory loans have an origination fee around 2%. The origination fee can be fully financed; as a result, there are no out-of-pocket costs to the advisor. SkyView’s investment advisor loans have no other hidden application or other fees.

What are the terms of an investment advisory loan?

RIA loans can be structured to fully amortize over the loan term, meaning the principal is completely paid off over the term of the loan. Alternatively, we commonly employ a 7-year term with a 10-year amortization. The loan must be paid off in 7 years; however, the advisor is making payments as if the investment advisor loan had a 10-year term. The advisor can prepay additional principal to fully repay over the 7-year term, or pay the minimum payment due, and have a residual balance remaining at the end of the RIA loan term that can be paid in full or refinanced.

Assuming our borrowers make timely payments over the loan term, banks appreciate seasoned borrower requests to finance the residual due at term for the remaining 3 years. Oftentimes, the borrower enjoys a more competitive rate for the residual due to their bank’s increased confidence in their ability to repay a loan.

How is SkyView Partners compensated on RIA loans?

SkyView retains the origination fee. We are only compensated when the advisor loan is funded by one of our banks. Our origination fee can be fully financed into loan proceeds.

Our fee does not fluctuate based on the interest rate charged or bank utilized; as a result, our goal is aligned with the borrower: retaining the best bank partner for their long-term M&A growth strategy.

The Process

How long does it take to fund an RIA loan?

SkyView Partners can underwrite your loan request, solicit offers from our network of banks, and fund within approximately as little as 21 days; however, most investment advisor loans fund forty-five to sixty days after submitting all RIA loan documentation.

What causes the investment advisor loan funding process to go slower?

Most advisor loans do not close in three weeks, primarily because the advisor has not completed all of the steps (commonly, the collection of requisite documents such as tax returns) required to begin underwriting.

What is the loan process?

STEP ONE:

Fill out the Pre-Approval Form (approx. 5 min) at www.SkyView.com.

If approved, we will email you instructions to create a login for our online application portal.

STEP TWO:

Create an account for SkyView’s AdvisorAccessTM Online Application Portal and fill out loan application (15 min).

STEP THREE:

Fill out the Loan Questionnaire (20 min) and sign Credit Authorization Form (5 min).

SkyView obtains credit information to help verify credit worthiness.

STEP FOUR:

Fill out the Personal Financial Statement (20 min).

STEP FIVE:

Submit documentation (5 min).

Required documents will be listed for uploading to our secure online portal. Our conventional loan structure typically requires 27 – 30 documents to close as opposed to 150 to close an SBA loan.

Where do I send my documents?

After you have been Pre-Approved, you will receive a link to upload all documents directly to our secure server.

The Advisory Loan Market

Why is it difficult to get an investment advisor loan?

Historically, banks have been very reluctant to lend to financial advisory practices because most have nominal tangible assets and fluctuating cash flows from commission-based compensation. As recurring fees have become more common, we have been able to educate select banks who are willing to fund RIA loans, despite negative tangible asset valuations.

Valuation & Deal Structure

SkyView relies on industry experts to help value and structure your advisory merger or acquisition.

RIA Valuation Experts: Third party RIA valuations are required by all of our lenders. Several firms offer RIA valuations for varying prices and levels of service. For a list of approved RIA valuations, contact our Credit Team at Underwriting@SkyView.com.

In general, what is an RIA practice worth?

Oftentimes, RIA practices with a larger portion of their revenue generated from recurring advisory fees attract valuations of 2.5x – 3.5x trailing revenue. Fees generated from non-recurring sources (A shares, closed end REITS, etc.) typically receive valuations of 0.75x – 1.25x. Ultimately, RIA value is determined by buyer and seller.