Mintz Levin sells its $1.2 billion RIA, and Focus Financial nabs the assets through a partner firm
In an all-Boston deal, The Colony Group becomes a $2.5 billion behemoth only months after hooking up with the big New York consolidator
Accountants and lawyers started wealth management businesses during the wealth management bull market (my term). They were successful because they could actually cross sell their clients wealth management services which charged a annual fee vs a one time fee.. It was also a good business model because the clients trusted their accountants and attorneys and “anyone could make good investment decisions”....
Interesting that as we have entered the wealth management bear market (my opinion) that wealth managers see the need to merge with accounting firms and law firms and visa versa.
Wonder what clients think about these changes?
Clients are either confused by or oblivious to these corporate actions. As long as their relationship manager or team is unchanged and there’s a presumption of greater resources (i.e. services), they will grant their consent and stay the course.
This passive tolerance will be tested, however, should the parent (in this instance, Focus Financial, wish to exit). Size may confer some operating leverage for any individual firm or roll-up strategy, but clients prefer the client experience of a boutique.
This “tension” between the firm-level business economics and the client experience is at the heart of the challenges facing the industry.
Shirl Penney hands over 'front end of the house' to Andrew Marsh as Dynasty reboots -- post-$100-million raise, post-IPO withdrawal and post-Schwab partnering
The Dynasty CEO is handing over sales, custody relations, breakaways and M&A sales to the un-retired Canadian -- and wildly promoting from within.
September 21, 2023 at 1:53 AM
Biz Briefs: Vanguard's tax-loss harvest yields a caveat• Vermont green with envy ... of red states? • CFP Board spends $12 million on bungee metaphor • BlackRock isn't neutral on Credit Suisse • Women are the Goliath of 'David' in UK finance
Tax-loss harvest gains may have some home assembly required, says Jeff DeMaso • Adrian Johnstone is now in the driving seat at Practifi • CFP Board spending just topped $150 million • and Vermont shares some Texas thinking on ESG investing.
March 25, 2023 at 1:32 AM
With RIA valuations ticking down and successions ticking up, Focus Financial deep sixes 'drunken sailor' pause, forgoes buyback plan and adds a CEO
CEO Rudy Adolf sees a 'softening' in multiples after a couple of frothy years when CI Financial dominated headlines and big RIA deals
August 13, 2022 at 12:39 AM
Looking past Covid-19 pandemic, Louisiana RIA buys $1-million building after hitting $1 billion in AUM and hiring the town's mayor
Summit Financial Wealth Advisors was sold to Focus Financial in 2014, growing its assets by $400 million since then but keeping staffing about the same