The Wire

August 26, 2019

Advisors Are Bolting – and Not Always for More Cash. How RIAs Can Keep Staff Happy.

Advisors are going places – literally.

According to a Cerulli Associates study, more than 5,500 RIAs (independent and hybrid) switched firms last year, representing 10% of all RIAs. Yet  across all channels, these advisors had demonstrated loyalty, with an average tenure of 11.3 years at their current firm, before moving on with $380 billion in assets combined.

July 30, 2019

The Story Behind the Data: Are Associate Advisors Getting Stiffed?

Profit margins, revenues and assets under management are up at RIAs, to the benefit of everyone except associate financial advisors.

The operating profit margin for the typical RIA was 20.9% in 2018, up more than one percentage point from the previous year. Median assets and revenues are expected to grow 13.5% and 9.1%, respectively, in 2019, according to a TD Ameritrade Institutional FA Insight study released today. 

June 30, 2019

Dynasty Financial was like the roll-up with no financial engineering; now Shirl Penney is hacking capital left and right for an M&A machine and a poaching parlor

Dynasty Financial Partners is delving deeper into financial engineering -- rolling out an M&A department on a fairly grand scale and a '"Freedom Note" that some joke is quite the opposite for the advisor.

The St. Petersburg, Fla. firm of 70 employees, which has 47 big RIAs and their $35 billion of assets, is ready to pull out all stops for growth. It's putting a new emphasis on putting capital into RIA hands by either to allow them to buy back their own freedom from wirehouses or to aid the RIAs in buying other RIAs.

June 10, 2019

RIA hunger for capital sparks lending boom

As interest in M&A intensifies, more lending options are opening up for RIAs looking for capital to do deals.

The deal flow over the last six months is the highest in the history of the industry, exceeding the previous record by more than 20%, according to DeVoe and Co. And last month’s groundbreaking sale of United Capital to Goldman Sachs for $750 million highlighted the accelerating interest in independent advisory firms.

Expect more RIAs to seek more capital for growth, says industry consultant John Furey, principal of Advisor Growth Strategies. “RIAs need more capital to structure next generation equity, succession plans and M&A,” Furey says.

May 29, 2019

Tibergien Talks M&As, Wells Fargo’s RIA Move and Surprising Industry Trends

ThinkAdvisor had the chance to catch up with BNY Mellon|Pershing Advisor Solutions CEO Mark Tibergien at the firm’s recent RIA Symposium in Chicago. We got his thoughts on M&A trends,  the breakaway movement, RIA affiliations and what RIAs can expect going forward.

Here are excerpts from the hour-long conversation with the RIA thought leader, who writes a monthly column for Investment Advisor magazine.

May 11, 2019

Innovate or else: Advisers must leave the comfort zone before it's too late

A lack of innovation is threatening the growth that the financial advice industry has become accustomed to in recent decades, according to some top advisers.

Technology is commoditizing advice services. Without innovation "you may not be here in a couple of years," said one firm leader during a recent roundtable with the Alliance for Registered Investment Advisors, a think tank founded by advisers, hosted by InvestmentNews in New York.

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