Five Questions for: Sponsor Growth Solutions Founder Heidi Wheatley

In The DI Wire’s latest installment of “Five Questions for…” the editorial team interviewed Heidi Wheatley – founder of Sponsor Growth Solutions. Wheatley brings over two decades of expertise in financial services, spanning the broker-dealer, registered investment adviser, and sponsor sectors, and was most recently with Keystone National Properties LLC as chief operating officer. Wheatley has facilitated the raising of hundreds of millions of dollars for various organizations, including Keystone, Preferred Capital Securities, and Horizon Investments.

Sponsor Growth Solutions, or SGS, aims to guide emerging companies through the complexities of entering the independent broker-dealer and registered investment adviser channels.

 The DI Wire: What led you to focus on supporting emerging and early-stage sponsors?
Heidi Wheatley: Emerging and early-stage sponsors bring fresh ideas and innovative strategies to the alternative investments space, but they often face significant barriers to entry. I saw an opportunity to bridge the gap for these sponsors, helping them enter the channel by providing the tools, relationships, and expertise they need to succeed.

At SGS, we advocate for new sponsors by acting as an extension of their team, guiding them through every step of the process. From connecting them with proven industry professionals to helping them navigate compliance, marketing, and distribution, we help them avoid unproven resources and costly missteps. This approach saves them time and money and allows sponsors to focus on their strengths – building compelling investment opportunities – while we handle the complexities of entering the retail channel.

DIW: What challenges do emerging sponsors face, and how should they navigate these challenges?

HW: Emerging sponsors face several challenges, including undercapitalization, a lack of established relationships with broker-dealers and RIAs, and limited resources to build a solid distribution infrastructure. Many also struggle with navigating compliance requirements and understanding the nuances of the retail channel.

At SGS, we provide solutions to these challenges, offering hands-on support to help sponsors establish credibility and scale efficiently. This includes identifying managing broker-dealer relationships, connecting them with industry attorneys and third-party due diligence firms, guiding them through product development and positioning, supporting budget and conference/marketing planning, and building their distribution team – whether outsourced or W2 hires. Given the reputable and proven national accounts and wholesaling consultants are generally full, we can bridge the gap by providing national accounts and wholesaling support while waiting for their “ideal” resource or conducting an employment search for a full-time employee.

It’s worth noting that it typically takes about a year from start to finish to raise a dollar and can cost up to $1 million to enter the retail channel, depending on how a sponsor chooses to structure distribution. If anyone promises to deliver a specific number of selling agreements or dollars within a set timeframe … run. It’s impossible to predict how quickly broker-dealers, RIAs, or financial advisers will adopt a product. Adoption depends on many factors, and at the end of the day, we operate on the timeline of due diligence officers and financial advisers, not the other way around.

DIW: Does the industry provide enough support for new sponsors? If not, what would help them have a fair chance?

HW: The industry has made strides, but there’s still a significant gap in the support available to new sponsors. Many resources are designed for established firms, leaving emerging sponsors priced out of critical opportunities like conferences, marketing, and distribution resources. SGS provides tailored services to address these gaps, offering cost-effective solutions and strategies that help new sponsors gain exposure, drive sales, and build credibility.

Creating sponsorship, technology platform pricing and marketing opportunities for new sponsors with smaller budgets would further level the playing field and give them a fair chance to succeed in the retail channel.

Sponsors considering entering the retail channel or who have recently entered the channel should leverage industry organizations like ADISA and third-party due diligence firms to gain an understanding of the channel and their competitors and start building relationships and brand awareness.

DIW: New sponsors often lack the resources or budget to build their in-house teams. What would you recommend they prioritize, and how can they benefit from bringing in consultants?

HW: For new sponsors with limited resources, the focus should be building relationships and ensuring compliance. Outsourcing key services like national accounts and wholesaling to experienced consultants is an intelligent way to lend credibility to their efforts and gain access to critical relationships with due diligence officers and financial advisers.

At SGS, we act as an extension of the sponsor’s team, providing the expertise, relationships, and infrastructure needed to help sponsors identify reputable industry resources that can help them secure selling agreements, and generate sales. This approach allows sponsors to focus on their strengths while accessing the resources they need to succeed without the financial burden of building an in-house team from scratch.

DIW: What advice do you have for emerging sponsors looking to enter this space?

HW: Pack your patience and be prepared to invest time and money into building your brand.

• Start with a strong foundation: Have a well-defined value proposition and ensure your offering stands out.
• Invest in relationships: This is a relationship-driven industry. Surround yourself with experienced partners who can open doors and provide credibility.
• Be patient but proactive. Gaining traction can take a year or more, so plan for a long runway and engage the right partners early.
• Stay flexible: Be open to feedback from industry attorneys and third-party due diligence firms and adapt to the requirements of broker-dealers, RIAs, and financial advisers.
• Leverage proven experts with industry relationships: By bringing in experienced consultants like SGS early, sponsors can avoid common pitfalls, save time and money, and focus on creating compelling investment opportunities.

For more Sponsor Growth Solutions, please visit their directory page.