A higher bidder ripped WealthTouch from Craig Pearson's grasp but his startup could rip the clients, free of charge, right back -- and leave Addepar gasping
After his noncompete expired, the founder and CEO of Private Wealth Systems is welcoming old UHNW managers whose language he speaks
Just as satisfying as winning advisors are the firms that are losing to PWS in head-to-head bids -- or by default -- to his Charlotte, N.C.-based firm.
But it all makes sense when framed in hog-farming terms, says Pearson.
“It's not a beautiful looking pie chart [like Addepar] ... it is all coded from the ground-up to solve the challenges. It's not lipstick on a pig, it's about transforming the pig.”
Pearson says it's all in the way you look at it.
“[Addepar's] assets under reporting [just under $1 trillion] is completely meaningless in this industry. It's a beautiful marketing term and its very impressive but what does it actually mean? What if you have a single holding from Facebook worth $50 billion? Is that impressive?” Mark Zuckerberg's family office, Iconiq, uses Addepar software. See: How the Facebook IPO is creating the mother of all RIAs, Iconiq, and what an in-your-face it is for Wall Street.
For Pearson, there's a personal motivation behind his UHNW business: As a teenager he got fiirsthand knowledge of falling from the grace of super-affluence.
“I was working two jobs and I needed to give my father all the money I saved so he could pay rent,” says Pearson, recalling the painful period in his life after his father lost the family fortune.
“He grew up in Greenwich, Connecticut in a very nice house, went to the right schools, and now he lives in a one-room trailer in Lincoln, Fla.” See: Why the 56-year-old scion of Wall Street barons is 'broke' but unforgiving toward the financial advisors who might have kept him rich.
Pearson continues: “What happens in your teenage years scars you, so for me, PWS is my own personal therapy and my own cure. I've seen what happens when you don't have this [oversight] system ... Wealth is fragile.” See: Why love has everything to do with the next frontier in financial planning and our relationship to money.
Willing to wait
Joe Lonsdale is prepping Lonsdale Investment Technologies for launch 13 years after founding Addepar -- with the new business model too cannibalistic for comfort, some say
The Austin, Texas, serial entrepreneur is still executive chair of, and a big stakeholder in, Addepar but may need a fresh start to manifest his hyped vision of creating high bandwidth financial flow between retail investors and vast private markets.
February 23, 2022 – 12:09 AM
Surfing a $15-billion-a-week asset growth meteor, Addepar CEO Eric Poirier hires an owner as president to achieve 'escape velocity' and keep operations from flaming out
Addepar is fast nearing $3 trillion, it says, after a 50% RIA asset spike in 2020. Now an Addepar owner through Valor Equity Partners is stepping in to safeguard or supercharge his investment depending on the point of view.
April 9, 2021 – 11:03 PM
Addepar hires Advent genius then launches 'Advent Converter' to court the RIAs still on Axys and APX ; PortfolioCenter 'easy button' comes next
The tactic by the Mountain View, Calif. firm and Advent co-founder and code avatar Steve Strand comes a decade after Orion, Black Diamond and Tamarac began feasting on the legacy corpses, but Addepar insists meat remains on the bone.
March 3, 2020 – 5:05 PM
Pete Giza and Damon Deru go for Holy Grail of portfolio rebalancing with software that shuffles stocks, bonds... and asset classes; Believe it?
The RedBlack and TradeWarrior executives see old systems as 'archaic' yet know that the Black Diamonds, Morningstars, Orions and Tamaracs see rebalancing as a loss leader
June 11, 2019 – 9:49 PM
Portfolio Management System
Top Executive: Eric Poirier