Ron Cordes tells about his Next Big Thing after selling AssetMark
The Genworth exec headed to Africa to dig wells after cashing out of AssetMark but realized he could do more with impact funds
Elmer Rich III
Let us add two observations, one based on research we’ve seen and one our personal experience with M+A work we do for both sellers of practices and buyers:
- The outcome research on charitable work shows good results for charitable projects are increasingly problematic. “Saving the world” is much more difficult than popular notions would suggest, of course.
Firms as sophisticated and well funded as the Gates Foundation are finding that unintended consequences and “blow back” are often more common than good results for charity “investments.” It’s a lot more complicated than getting and spending money — of course.
- Using a practice to fund retirement is common, however, it can also drain the value from the practice for any purchaser. The twin goals of funding a lifestyle and building salable equity in a practice are fundamentally incompatible.
Unfortunately, like all our clients, immediate needs and current consumption, in this case of the accumulated equity and value in a practice, win over longer-term and higher rewards. One needs to take a sober view of cognitive and business abilities past 60 for the owners. Brain abilities and capabilities clearly decline in many professionals and business people. So what is best for the clients rather than just the owners is important.
Not a pleasant or comfortable reality but those are the medical facts.
Related Moves
Under new owner, AssetMark names new CEO, but Michael Kim is keeping his CEO job, too -- as post-TAMP era draws near, and company gears up for 'aggressive growth'
The Concord, Calif., TAMP is adding the second CEO to jack up leadership bandwidth to grow organically and inorganically -- and evolve into a more generalized outsourcer.
September 11, 2024 at 4:12 AM
SMArtX is loading up on Envestnet talent as re-peopling rolls on -- post Morningstar disruption -- with two hires from the Berwyn, Pa., TAMP
The West Palm Beach, Fla., TAMP is getting Courtney Robertiello and Jacqueline Burke, and their staggering 29 years of experience for 'growth and innovation,' the company says.
July 4, 2024 at 2:09 AM
Morningstar's sale of TAMP's $12-billion book-of-business to AssetMark ends two-year run that fell short on growth; whether RIAs stick or flee will determine fate of deal
Morningstar nets a cash windfall, a better distribution deal, and it reduces conflicts with its clients, but SMArtX is the likely loser, which will no longer administer Morningstar's TAMP assets.
