The Wire

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.

May 1, 2019

Will Bob Oros’ PE-backed strategy for HighTower work?

After using a variety of strategies to grow to nearly $50 billion in AUM over the last 11 years, HighTower Advisors is unfurling its roadmap to build up value for an eventual liquidity event.

“Private equity is not long-term capital and Thomas H. Lee Partners [the RIA’s majority shareholder] is no different,” says HighTower CEO Bob Oros. “But Lee has patient capital, and if we build the firm the right way we will have quite a few options when the time comes [to make a decision]. We want to build enterprise value that people will be attracted to.”

But how exactly does Oros, the former Fidelity and H.D. Vest executive who replaced Elliot Weissbluth as CEO in January, plan to do that?

May 1, 2019

Brand ambitions: RIAs bid to become household names

If you were glued to the couch during the first few weekends of the NCAA Men’s Division 1 Basketball Tournament, you may have noticed an interesting advertisement or two nestled between the usual mind-numbing spots imploring you to eat Reese’s and drink orange vanilla-flavored Coca-Cola.

In one, a doctor tries to prescribe his wary patient a bottle of his proprietary elixir. In another, a waiter tries to push a ‘sardine surprise’ at a ritzy restaurant, telling his bemused customers that the restaurant gets a hefty commission with every sardine dish sold.

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