MarketCounsel Summit convenes in Las Vegas with Goldman Sachs there to say: We are already really a $1-trillion custodian

The MarketCounsel Summit, now in its 14th iteration, had a very different vibe from previous years, marked by less pomp and circumstance.

Into that vacuum stepped Goldman Sachs. 

Jeremy Eisenstein, co-head of Goldman's RIA custody sales and head of strategic relationship management, was featured on a growth panel.

He insisted that Goldman is already a $1 trillion custodian. See: Goldman Sachs both clarifies and adds complexity to its RIA custody launch with press release reporting its' best-of-both-worlds' platform onboarded a '$1-billion' Merrill Lynch team

“Goldman has worked with RIAs for years now on our product side, and we know them very well. We also know custody deeply, as we currently custody over $1 trillion of private wealth through Ayco, PFM [formerly United Capital] and our ultra-high-net-worth business through our own private wealth advisors. 

"However, our relationships with RIAs had been disintermediated as they could only access Goldman Sachs through another institution. 

"With our RIA custody business, we have broken down that barrier and opened up the gateway to all that Goldman can deliver for RIAs.”  See: Pershing wins $27-billion Steward Partners RIA custody account after Goldman Sachs boots launch and pressure built for an alternative to 'jilted' Raymond James

Eisenstein envisions Goldman Sachs re-energizing the breakaway broker movement by offering a brand to wirehouse advisors that reassures them that their high-net-worth clients are in good hands.

Thinking transcendently 

Technology was in full throat in Las Vegas and the first three sessions on the first day were all about scaling with software.

Joel Bruckenstein, producer of T3 events,  grilled his panelists -- Oleg Tishkevich, CEO of Invent, Craig Iskowitz, CEO of Ezra Group and Kartik Srinivasan, managing director for Schwab -- about the latest technology challenges for advisors.  

Tishkevich, known to speak in coinable phrases, delivered the event's crowning quotation (out of earshot of his wife's parents): 

“Integration is a generic term – it has lost its meaning from over-use, as that word is also used during a merger and acquisition, there is also integration when teams combine, and there is even integration when people get married – and no one has solved the API for the in-laws yet.” See: Oleg Tishkevich makes two familiar, key ex-TD Ameritrade hires as INVENT hits 20,000 users and shifts into high gear to serve RIAs

According to Tishkevich, technology integration needs to think more transcendently.

“When you pick a solution, you are now beholden to that application’s requirements and you have given up control.” 

A better way, he argues, is to bring the apps advisors use into one experience and have them work together, much the way that apps on the iPhone are easily downloaded and work together within Apple’s operating system.

Marketing visions

Another key theme throughout the conference was organic growth, including a seminal panel discussion led by Shannon Rosic, director of WealthStack content and solutions for Informa.

She sat down with Candice Carlton, head of advisor growth marketing for FiComm Partner; Tony Stich, chief revenue Officer for Entrustody and Matt Middleton, CEO of Advisor Circle and producer of the Future Proof conference. See: Future Proof bursts onto the RIA event scene by taking over four big hotels and a half-mile of beachfront without the taint of 'pay-to-play' speaker slots

This panel had so many insights that it was impossible to capture them all, but it mostly focused on a question Rosic posed in her opening comments. “Marketing is digital, but relationships are human, so how do you manage that?” she asked 

"Delicately" seemed to be the consensus. 

“Your vision is your marketing message – why do you do what you do?" Carlton asked.

 "What is the change you want to create? And who is it for? If you answer those questions, your marketing strategy defines itself – and if you don’t know the answers, ask your five best clients and they will tell you.”

Deal flows

Dave DeVoe, CEO of Devoe & Co., said RIA M&A valuations are status quo, though one serial buyer admits deals got more “creative” in the fine print. The earnouts assuage sellers determined to unload their firms but not be penalized for today's beaten-down stock market. 

“Valuations have not changed and multiples have not gone down, despite the current environment and market pullback,” he said. 

Deal flow has slowed down, however. Devoe pointed to a dramatic change in Q4 deals compared to a year ago, as well as the fact that deal terms are changing. 

“We are being creative to provide a longer earn-out period so markets have time to recover, and advisors can realize full value,” said serial buyer Norm Cook, executive vice president of Sequoia Financial Group.

Life stories

Held earlier this week at the Four Seasons resort in Las Vegas, the conference had a more casual, folksy air.  

The organizers released the agenda 48 hours before the opening kickoff party. The event is known for nabbing celebrities like Mark Cuban, Earvin “Magic” Johnson and Tony Robbins.

Yet the event had heart, thanks to the masterful panel moderation of Diana Britton, managing editor of wealthmanagment.com, who humanely asked questions.

John Hyland, managing director of Private Advisor Group, spoke about his battles with cancer, beating leukemia three times, and now just recently overcoming throat cancer. See: How the industry is rallying to help John Hyland as his cancer returns and why the New Jersey advisor seems impervious to fear

Gavin Spitzner, president of Wealth Consulting Partners, is battling leukemia and spoke inspiringly about his journey of being diagnosed with cancer and fighting back with chemotherapy.

Both Hyland and Spitzner talked about how their priorities changed overnight, and that “wealth without health is worthless.” 

Advisors Mark Nichols, with Arbor Digital and Jonathan DeYoe with EP Wealth, both shared their experiences with crisis, trauma and mental health. 

Each enunciated that asking for help needs to be okay and that the  “man up” culture in finance needs to change.

Big three absent

Conspicuous in their absence was the engulfing presence of the Big Three-- or four -- RIA custodians, particularly Schwab and Fidelity. Typically, they take over the event with signage and invitation-only parties. 

Their presence often extends to setting up branded “living rooms” in the foyers of the conference properties.

Along those lines, there was no traditional custodian/executive panel this year made up of higher-ups from
Schwab, TD Ameritrade, Fidelity and Pershing. Ben Harrison, Pershing's RIA co-head attended.

Premium placement for exhibitors was just outside the main ballroom, with a few notable newcomers, including, Jeremy Grantham’s GMO asset management firm fresh off the launch of Nebo. 

Nebo (for Needs-Based Optimization) bridges the gap between financial planning and asset management. 

Nebo is built on the idea that clients' chief investment risk is not short-term market volatility, but rather not having the financial resources needed when needed.  

Nebo pitches a next-level automation of coordination between plan and asset allocation.

To learn more about what went on at the 14th MarketCounsel Summit, check out the many tweets on the #MSUM22 hashtag on Twitter.

Timothy D. Welsh, CFP® is President, CEO and founder of Nexus Strategy, LLC, a leading consulting firm to the wealth management industry and can be reached at tim@nexus-strategy.com or on Twitter @NexusStrategy. Yes, Tim has consulted many firms mentioned in this article over his decades in the consulting business.

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