born in response to a gap in theindustry. They were born to fillthe needs of something that didn’texist before.
If you take a firm like SanctuaryWealth Partners, there was a needfor advisors who wanted to goindependent to have a shared support model and still get paid somenice transition money. And the factthat it’s run by two Merrill insidersjust means that the leaders reallyconnect, speak wirehouse and havedone extraordinarily well.
If you look at most models— Rockefeller, First Republic,Snowden Lane, LPL’s newStrategic Wealth Services, DynastyFinancial Partners, Hightower,Focus — they were all born to solvefor something. Some smart leaderidentified a hole and built a modelto fill it.
How would you characterize all
LOUIS It’s filling holes. At thesame time, each new businessmodel that comes out improves orinnovates upon what someone elsedid before. None of these modelsare necessarily groundbreaking or
100% original or unique.
For example, when Dynasty started out it didn’t invent theRIA model. Advisors could always start an RIA with Schwab,Fidelity or Pershing. It was just cumbersome and a lot of work.Dynasty’s innovation was helping advisors launch businessesbut in a very turnkey and supported fashion.
Hightower, Focus Financial Partners and others provide
capital to advisors looking to get a deal. And there are newer
entrants like Rockefeller that came in by taking something that
wasn’t really there and saying: “Let’s build an RIA platform or
a multi-family office. By leveraging an impeccable brand, we’ll
give advisors really competitive economics to join. And let’s
bet on the fact that advisors are looking for a lot more freedom
It’s worked in an RIA environment, but some of these advi-
sors aren’t looking to necessarily start their own businesses.
These newer firms have all come in by filling a hole and also by
improving upon something that was already there.
MINDY While they’re each filling their own version of a gap, it’sall done mindfully and thoughtfully. Most of the leaders who’veinnovated in this space took thetime to do a listening tour, meetwith advisors and get an understanding of what’s most importantto them, what they’re limited by orlacking where they are and whatthey’re looking for.
That really is in direct contrastto what it’s historically been like towork for a wirehouse. If you workfor a major firm, they give youthe platform. For most people, thatplatform is robust and more thangood enough.
They tend to limit you in termsof how you can conduct yourself;there are very narrow guardrails,if you will, in terms of the abilityto self-brand and self-publish andwhat you can say on social mediaor things like that. They’ve tendedto create technology based uponwhat’s going to be most profitablefor the firm and good for the firm.
Thus, there’s a breath of fresh airthat advisors often find when theybegin to do due diligence and consider leaving a world where it’s not allabout them … and going to a world where it’s all about them. Thesefirms tell them: “We’re building this for you. We work with you.”
What’s new for advisors focused on being
MINDY In today’s industry landscape, the great news forthose who are über entrepreneurial is that they can go outand build their own firms. For those that are entrepreneurialin thinking, who want more control and ownership over howthey serve the clients or how they creatively conduct themselves but don’t want to be a business owner, they can get thoseneeds met as well.
That’s the cool thing. There are many different iterations ofentrepreneurial spirit, and an advisor is more likely to find theone they want today.
Even with a $10 million team we moved recently fromone wirehouse to another, the advisor found a much moreentrepreneurial spirit with the move and could create a niche
In today’s industry
landscape, the great
news for those who are
is that they can go out
and build their own
firm. For those that
in thinking, who want
more control and
ownership over how
they serve the clients
or how they creatively
but don’t want to be a
business owner, they
can get those needs
met as well.