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After his noncompete expired, the founder and CEO of Private Wealth Systems is welcoming old UHNW managers whose language he speaks
April 25, 2018 — 6:27 PM UTC by Oisin Breen
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
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Portfolio Management System
Top Executive: Eric Poirier
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