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In The Press
Deals & Recruiting Roundup: Kestra, Raymond James, Beacon Pointe, XYPN And More

ECHELON Partners Releases Its 3Q24 RIA Report. M&A By Stone Point, Pathstone, Beacon Pointe, Naviter, Carson And AlphaCore. Recruitments By Raymond James, Journey And Avantax. XYPN Adds Corporate RIA Model. World Investment Advisors Adds Raymond James As A Custodian. by Chris Latham This edition of the Deals & Recruiting Roundup covers the ECHELON Partners third quarter RIA M&A Deal Report, Stone Point agreeing to acquire a majority stake in Kestra, Pathstone agreeing to acquire Hall Capital, Beacon Pointe acquiring Landmark Wealth, Naviter buying back WAGN’s minority stake, Carson Group acquiring Sweet Financial Partners, AlphaCore merging with All Season, Raymond James picking up a team from RBC, Journey Strategic Wealth recruiting advisors Chad Faulkenberry and Jill Isbell, Avantax recruiting 10 advisors, XYPN launching its Sapphire corporate RIA affiliation model and World Investment Advisors adding Raymond James as a custodian. Larry’s Take Recent news of Stone Point Capital agreeing to acquire a majority stake in Kestra after selling its minority stake to Oak Hill Capital in 2022, and of Naviter buying back Wealth Advisor Growth Network’s minority stake after launching in 2023, are two different positive examples of not-quite-linear growth trajectories in wealth management. As WSR Editor in Chief Julius Buchanan noted in his article earlier this month, “The Non-Linear View Of Capital Structures,” successful firms may encounter various circumstances that make sense for it to avoid the conventional path of early stage with founders and startup investors, through a growth period with private ownership, culminating in a mature public company. The Kestra and Naviter deals also show how buyer confidence can merit breaking with the herd. PE firms can revisit past portfolio holdings, based on how the target company performs in the future and prevailing market conditions at the time. And fast growing RIAs can re-invest in themselves as their leaders accumulate capital. Those are great qualities of our industry. If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact me at larry.roth@rlrstrategicpartners.com. Mergers & Acquisitions 1. ECHELON Partners Releases 3Q RIA M&A Deal Report Dan Seivert, CEO and Managing Partner, ECHELON Partners ECHELON Partners released its third quarter RIA M&A Deal Report, which found that buyers announced 74 transactions – a slight dip from the 75 deals announced in the second quarter and the lowest since the second quarter of 2023. Even so, 2024 transaction volume through September surpassed volume for the same time period last year, with 241 deals announced this year compared with 239 deals announced by the end of 3Q23. Strategic acquirers such as private equity-backed RIAs announced 85.1% of third quarter deals and financial acquirers such as private equity firms announced 14.9% of deals, ECHELON found. This year is on track to have 130 wealth management acquisitions with at least $1 billion in assets, up from 2023’s 116 such deals and 2022’s 118 billion-dollar deals. More than 50 wealthtech transactions were announced, a big jump from the previous quarter’s 33 wealthtech deal announcements. While deal activity remained relatively constant this quarter compared to last, there are some important signs for optimism: large acquirers continue to raise capital, and many indicated that they would be closing numerous deals at the end of the third quarter (though these will be announced in 4Q24). according to the ECHELON report. The recent capital raises and solid 3Q24 performance are indicators of ongoing seller supply and acquirer optimism. 2. Stone Point Capital To Acquire Majority Stake In Kestra James Poer, CEO, Kestra Holdings Private equity firm Stone Point Capital agreed to acquire a majority interest in Kestra Holdings, replacing Warburg Pincus while Oak Hill Capital remains a minority owner. The management team of Kestra Holdings, many Kestra-affiliated financial advisors and affiliated principals of Bluespring Wealth Partners will keep their equity positions. The transaction is expected to close in the first quarter of 2025. Kestra Holdings aims to use the recapitalization to bolster its acquisitions, recruiting, and service and technology platform. Stone Point initially invested in Kestra in 2016, supported its spinout from NFP, became a minority investor in 2019 and then sold its minority stake to Oak Hill in 2022. Kestra supports approximately 1,700 financial professionals and had approximately $117 billion in assets under advisement as of Dec. 31. We’re pleased with the successful partnership we had with Warburg Pincus and are excited to once again partner with Stone Point. said James Poer, CEO of Kestra Holdings Stone Point’s expertise and partnership previously helped propel us along a successful path to establishing our unique value proposition – to support successful wealth management businesses with full and deep value while focusing on the life cycle of their entrepreneurial efforts. 3. Pathstone To Buy $45 Billion RIA Hall Capital Katie Hall, Co-Founder and Co-Chair, Hall Capital Partners Partner-owned Pathstone, which provides family office services, agreed to acquire Hall Capital Partners, an RIA managing about $45 billion in client assets. Pathstone said the transaction will enhance its investment capabilities and boost its total assets under management (AUM) to almost $100 billion and total assets under advisement and administration to nearly $160 billion. After the acquisition closes, Pathstone will have expanded its national footprint and have a total of 23 offices and more than 750 team members, almost 300 of whom are shareholders of the firm. Like Pathstone, Hall Capital is an independent investment advisory business serving ultra-high net worth families, endowments and foundations. Hall Capital, which serves more than 130 clients, was founded in 1994. From the beginning, we have strived and prided ourselves on our ability to meet the needs of our clients, and we truly believe this combination brings together two complementary organizations who will benefit immensely from collaboration and sharing of resources. said Katie Hall, Co-Founder and Co-Chair of Hall Capital. 4. Beacon Pointe Acquires $1 Billion Landmark Wealth Shannon Eusey, CEO and Founder, Beacon Pointe Advisors Newport Beach, California-based Beacon Pointe Advisors acquired Lake Elmo, Minnesota-based Landmark Wealth Management Group, which oversees approximately $1 billion in AUM. Landmark also has offices in Farmington, Minnesota; Hudson, Wisconsin; and San Jose, California. Landmark provides financial planning, investment management, estate planning, tax strategy and insurance. It serves individuals, families, business owners and employees of Fortune 500 corporations such as 3M, Lockheed Martin and Andersen Corporation. The acquisition of the 36-member team will bring Beacon Pointe’s assets under advisement to approximately $38 billion. It is Beacon Pointe’s fifth publicly announced RIA acquisition this year. The team at Landmark will do very well at Beacon Pointe due to our shared ethos. said Shannon Eusey, CEO of Beacon Pointe Advisors. Their large group of skilled wealth management and investment professionals will enter as a new powerhouse, acting as an emerging catalyst for progress, positive energy, and optimization overall. 5. $1 Billion Naviter Buys Back WAGN’s Minority Stake Bentley Blackmon, CEO, Naviter Wealth Little Rock, Arkansas-based Naviter Wealth, an RIA that CEO Bentley Blackmon and President Phillip Worthen founded in early 2021 with the backing of Denver-based Wealth Advisor Growth Network (WAGN) as an investor and consultant, purchased back the minority ownership held by WAGN in a transaction that also expands Naviter’s employee ownership. Naviter, which last year acquired Echelon Wealth Advisors, manages more than $1 billion in client assets. Partners John Phoenix and Jay Hummel founded WAGN, which also manages the WAGN Hub, a network of affiliated firms that operate similarly and receive exclusive access to WAGN’s specialty services as well as business, operational, and growth support. Naviter Wealth and WAGN aim to continue their other existing business interests together. The WAGN team was critical to us in the early stages of our launch.Blackmon said. As a strategic and capital partner, John and Jay helped us quickly identify and implement the compliance, legal, marketing, technical, and back-office support we needed for a successful start. 6. Carson Group Acquires $1 Billion Sweet Financial Partners Bryan Sweet, Managing Partner and Wealth Advisor, Sweet Financial Partners Omaha, Nebraska-based Carson Group acquired Fairmont, Minnesota-based Sweet Financial Partners, a 12-person team that has $1 billion in client assets and is Carson’s second largest deal so far. As a result of the deal, the firm and its clients will have access to experts in Carson’s Investments, Research and Financial Planning teams. Managing Partner and Wealth Advisor Bryan Sweet launched the firm in 1987. Sweet has 45 years of industry experience, including 32 years as an advisor affiliated with Raymond James. He has been a long-term member of the Carson Coaching platform, which aims to help advisors and their firms learn how to accelerate growth. Our team is excited to join forces with Carson Wealth.Sweet said. This collaboration allows us to maintain our local focus while tapping into the resources of a national brand. It’s a natural progression that aligns perfectly with our culture of inspiring clients to realize their dreams are possible. c 7. AlphaCore Merges With $200 Million All Season Dick Pfister, CEO and Founder, AlphaCore Wealth Advisory La Jolla, California-based AlphaCore Wealth Advisory merged with Denver-based All Season Financial Advisors, which has approximately $200 million in AUM and primarily serves high net worth clients. As a result, AlphaCore’s Cherry Creek office will gain four experienced All Season team members. Sam Jones, who founded All Season in 1996, joins AlphaCore as a Partner and business leader operating from Steamboat Springs, Colorado. The deal, AlphaCore’s first since receiving a strategic investment from Constellation Wealth Capital in December, is expected to close in the fourth quarter. AlphaCore has $3.1 billion in AUM, according to a spokesperson. It brought on Aidan Walsh as Head of Corporate Development in May and Brian Habas as Chief Operating Officer in June. For nearly 30 years, Sam and his team have served the Mountain-West region. The addition of the talented All Season team will immediately strengthen our capabilities in this key wealth market.said Dick Pfister, CEO and Founder of AlphaCore. All Season, along with other recent additions in Denver, highlights our commitment to growth and delivering high-quality service to an expanding client base. We’re excited about the contributions the Denver team will bring to AlphaCore’s continued success. Advisor Transactions 8. Raymond James Picks Up $1.1 Billion Advisor Team From RBC Raymond James brought on a team of four advisors in Las Vegas who collectively managed more than $1.1 billion in client assets at RBC Capital Markets. The Business Exit Planning Advisors of Raymond James joined the firm’s employee advisor channel ­– Raymond James & Associates (RJA) – and are operating as part of RJA’s Las Vegas branch. Managing Directors Kerry Withrow and Ben Hamilton lead the team. It also includes Financial Advisors Ryan D’Souza – who serves as First Vice President, Investments – and Elliot Bloch, along with Practice Business Manager Terri Criswell. Withrow has more than 30 years of financial services experience and Hamilton has 46 years of industry experience. Kerry Withrow and Ben Hamilton, Managing Directors, Wealth Management, The Business Exit Planning Advisors of Raymond James After extensive deliberation and due diligence, our team partnered with Raymond James for its advanced technology platforms, specifically designed to serve business owners and high-net-worth individuals and families Withrow said. What truly sets Raymond James apart is its personalized attention and unwavering commitment to a client-first culture Hamilton said. 9. Journey Recruits Advisors Chad Faulkenberry And Jill Isbell Penny Phillips, President, Journey Strategic Wealth Journey Strategic Wealth recruited Orlando-based Chad Faulkenberry from Charles Schwab, where he managed approximately $750 million in assets. He joins Richmond, Virginia-based Senior Advisors Mark Newfield and Angela Lessor, and Financial Planner Melissa Clark, as part of a growth and continuity plan. The firm also added Jill Isbell and her Office Manager, Yenni Chesire, of the Colorado Springs, Colorado-based RIA Creative Financial Services. Journey, which oversees nearly $4 billion in assets, has brought on eight advisory teams across the country since launching in early 2021. It provides middle and back office support, including investment management and practice management tools. Affiliated advisors have experienced average top-line revenue growth of over 70% since joining Journey, according to the firm. In August, Journey recruited the Tampa, Florida-based MDL Wealth Management team. We are more than just a platform aggregator. Journey is a community built on shared values, said Penny Phillips, President of Journey Strategic Wealth. We attract advisors who are passionate about serving their clients and want to do so within a firm that respects their unique approach but also ensures they are not building alone on an island. 10. Avantax Recruits 10 Advisors With $390 Million In Combined Assets Andy Watts, President, Avantax Wealth Management Cetera Holdings-owned Avantax added 10 new independent advisors with approximately $390 million of combined assets under administration so far in 2024. Avantax provides advisors with tax-intelligent tools, technology, resources and home office support. Advisors also can access peer-to-peer collaboration with other advisor affiliates of the firm. Here are advisors and professionals who joined Avantax in 2024 through the date of the press release. Ali Kazemi and his Sentinel Financial Group, based near San Francisco; Amy Wright, based near Des Moines, Iowa, of Wright Financial Solutions; Joseph Schwan and his Long Island, New York-based Premier Wealth Management; Allan Thompson, based in Lancaster, Pennsylvania; George Escobar and his Covina, California-based Xavier Consulting; Ken Ulrich and John Ariola, and their East Amherst, New York-based Progressive Planning Services; Scot Sageser and William Hubbard, and their Defender Financial Services Group, based near Seattle; and Townsend Morris, based in Ardmore, Pennsylvania. We’re excited these Financial Professionals chose to affiliate with Avantax, especially because their backgrounds and areas of client focus are so diverse, and their diversity helps further strengthen the Avantax Community,said Andy Watts, President of Avantax Wealth Management. Strategic Partnerships 11. XYPN Launches ‘Sapphire’ Corporate RIA Affiliation Model Alan Moore, CEO and Co-Founder, XYPN XY Planning Network (XYPN) – a support platform for independent, fee-for-service financial planners – is launching a corporate RIA affiliation option called Sapphire that will provide fee-only advisors with technology, support and resources, without the kind of asset minimums or fees typical of many corporate RIAs and broker-dealers. Sapphire members are independent contractors who own their business. XYPN’s current Emerald membership offers tech, compliance, community, coaching, advocacy, education and resources. Those members and non-XYPN advisors can transition to Sapphire, which offers all of XYPN’s benefits along with more support and back-office compliance, investment, and client-management outsourcing. It costs $1,500 per month and 20% of the advisor’s revenue. Too often, advisors strike out on their own so they can run their businesses how they want to, but then they join a corporate RIA only to end up back at square one, many times with even less control,” said Alan Moore, CEO and Co-Founder of XYPN. “We created Sapphire because many of our members asked for this option. They wanted a program that would allow them to focus on clients, not compliance and regulations. 12. World Investment Advisors Adds Raymond James As Custodian Kevin Ryan, CFO, World Investment Advisors; Troy Hammond, Founder and CEO, World Investment Advisors World Investment Advisors (World), a division of World Insurance Associates, struck a custodial relationship with Raymond James. World RIA advisors will have access to most of the same services as independent contractor advisors and employee advisors at Raymond James. In July, World acquired $3.5 billion Boston Harbor Wealth Advisors, a Raymond James partner of almost a decade. World has a network of more than 350 advisors and staff nationwide, serving thousands of retirement plan and wealth management clients. World Insurance Associates provides individuals and businesses with personal and commercial insurance, employee and executive benefits, retirement and financial planning services and human capital management solutions. We are excited about our new relationship with Raymond James and the additional resources it allows us to bring our advisors,” said Troy Hammond, CEO of World Investment Advisors. “We are focused on enabling advisors to manage their businesses their way, optimize operations, and recapture time spent on tasks they can delegate to us, ultimately allowing them to spend more time growing assets and building personalized relationships with their clients.

In The Press
$4B RIA Journey grows further with double addition

The firm is extending its growth ambitions with a new location in Colorado while welcoming a $750M Schwab advisorOCT 15, 2024 By Leo Almazora Jill Isbell, head of Creative Financial Services (left), and veteran advisor Chad Faulkenberry (right) National RIA Journey Strategic Wealth has expanded its independent advisor community as it welcomes two new additions to its network. In a double deal announced Tuesday, the firm overseeing nearly $4 billion in assets said it's welcoming Creative Financial Services, a solo RIA based in Colorado, and veteran advisor Chad Faulkenberry, previously with Charles Schwab. Jill Isbell, head of Creative Financial Services, and her office manager Yenni Cheshire join Journey, establishing the firm’s presence in Colorado Springs. Isbell, known for her commitment to financial education and holistic planning, has integrated her practice into Journey’s framework. Meanwhile, Journey said its addition of Faulkenberry will extend its presence in the Orlando, Florida market. Faulkenberry, who managed $750 million in assets during his time at Charles Schwab, will join Journey’s Richmond, Virginia team and work alongside senior advisors Mark Newfield and Angela Lessor. “Chad not only brings significant experience as an advisor and leader, but also expands this practice’s reach into a new market,” Penny Phillips, president of Journey Strategic Wealth, said in a statement. “We are doubling down on helping them take things to the next level.” Recently, Journey bolstered its presence in the Sunshine State when a veteran advisor from LPL joined the firm in Tampa. Since launching in early 2021, Journey has grown rapidly, attracting eight advisory teams across the US. By the firm's estimates, its focus on providing advisors with robust practice management support has led to an average top-line revenue growth of over 70 percent of the advisors joining its community. Phillips emphasized Journey’s role as more than just a platform aggregator, highlighting the firm's client-centric and independent ethos. “We attract advisors who are passionate about serving their clients and want to do so within a firm that respects their unique approach but also ensures they are not building alone on an island,” she said. In July, Journey expanded its advisor support platform through a partnership with RISR, a wealth tech provider with a focus on helping advisors engage with business owners.

In The Press
Journey Strategic Wealth Adds Advisors in Colorado, Florida

The RIA partnership has acquired a solo practice in Colorado Springs and hired a veteran advisor from Charles Schwab in Orlando, Fla. Diana Britton | Oct 15, 2024 Journey Strategic Wealth, a registered investment advisor partnership with nearly $4 billion in assets, has acquired a solo practice in Colorado Springs, Colo., and hired a veteran advisor from Charles Schwab. Financial advisor Jill Isbell has integrated her firm, Creative Financial Services, into Journey. She brings about $75 million in assets and establishes Journey’s Colorado Springs presence. Office manager Yenni Chesire joins her. Journey has also hired Chad Faulkenberry as financial advisor and managing director. He joins from Charles Schwab, where he managed $750 million in client assets with a focus on high-net-worth and ultra-high-net-worth families. He’s based in Orlando, Fla., and joins Journey’s Richmond, Va. practice, which includes senior advisors Mark Newfield and Angela Lessor and financial planner Melissa Clark. “Mark Newfield and the Richmond practice have grown over 40% year over year. We are doubling down on helping them take things to the next level,” Journey President Penny Phillips said in a statement. “Chad not only brings significant experience as an advisor and leader, but also expands this practice’s reach into a new market.” Phillips, along with financial advisors and former Dynasty Financial Partners executives Michael Brown and Brian Flynn, founded Journey in January 2021. Since then, they’ve attracted eight advisor teams. Based in Summit, N.J., Journey is structured as a hybrid RIA, affiliated with broker/dealer Purshe Kaplan Sterling Investments. They are looking to tuck in advisor teams, but firm principals say they will provide more services than the typical affiliation platform, particularly with consulting around practice management. In addition to tucking in, advisors may also choose to sell all or part of their practice to Journey. When an advisor joins the firm, they come under Journey’s ADV but still own their book of business if they decide to leave. Journey provides the essential functions advisors need to run their businesses, including operations and billing, human resources and payroll, investment management, financial planning support, technology, home office support and marketing. Advisors that join Journey can keep their administrative staff, associate advisors and anyone else who is client-facing, and their entire team goes onto Journey’s payroll.  The firm also recently launched a 1099 model, allowing advisors to operate as independent contractors.

In The Press
$4bn Journey recruits two advisors in Florida and Colorado

The additions for Summit, N.J.-based Journey include a Florida advisor formerly managing $750m for Charles Schwab and a $73m RIA based in Colorado. By Alec Rich $4bn hybrid RIA Journey Strategic Wealth announced a double deal on Tuesday, reeling in a pair of veteran advisors to expand its national presence. The additions include Chad Faulkenberry, formerly of Charles Schwab, and Jill Isbell of Colorado Springs-based solo RIA Creative Financial Services. Faulkenberry managed $750m in client assets with Schwab, while Creative Financial Services oversaw $72.5m in client assets as of its most recent ADV filing. Faulkenberry, based in Orlando, Fla., will serve as a regional extension of Journey’s three-person Richmond, Va. office, the firm said in a release. According to his LinkedIn profile, Faulkenberry joined Journey in May and is also a managing director with the firm. He worked at Schwab for a decade and previously held stints as an advisor with subsidiaries of Raymond James and Bank of America.  Creative Financial Services will be integrated into Journey through the deal but will continue to operate as its own office. Isbell is the sole owner of Creative, which she joined in 2019. She was previously a vice president and financial consultant with Schwab and an advisor at firms including LPL Financial, Edward Jones and T. Rowe Price, according to her LinkedIn profile. Yenni Cheshire, Creative’s office manager, is also joining Isbell at Journey.  Journey’s addition of Creative expands the firm’s footprint in the western US, adding to its existing offices in San Francisco, Seattle, and Park City, Utah. Journey also has several offices along the East Coast and an outpost in Minnesota.  ‘We attract advisors who are passionate about serving their clients and want to do so within a firm that respects their unique approach but also ensures they are not building alone on an island,’ Journey president Penny Phillips stated of the additions. Headquartered in Summit, N.J., Journey was launched in 2021 and serves over 440 clients, according to the firm’s most recent Form ADV filing. Phillips, a co-founder of the firm, owns Journey alongside co-founders Brian Flynn and Michael Brown. Journey strategic advisor Charles Britton is also a part owner along with venture capital firm Echelon Journey Management. Since its formation, Journey has mostly pursued tuck-in deals. Its most recent addition was $200m Tampa, Fla.-based MDL Wealth, which departed LPL to join Journey in August. Journey maintains a brokerage relationship with Purshe Kaplan Sterling Investments and announced a partnership earlier this year to use fintech platform RISR.

In The Press
Advisory M&A News – 10/21/24

Carson completes deal with Sweet Financial; Beacon Pointe Advisors adds Landmark Wealth Management; and Journey Strategic Wealth announces 2 acquisitions.Reported by Natalie Lin Carson completes deal with Sweet Financial Carson Group, a wealth management and financial services firm, announced its second largest deal to date with the addition of Sweet Financial Partners, a Fairmont, Minnesota-based firm with roughly $1 billion in assets under administration. Sweet Financial Partners is led by Bryan Sweet, managing partner and wealth adviser. The 12-person team will continue to operate as Sweet Financial Partners and retain its local focus while leveraging Carson’s national resources. The firm specializes in retirement planning, tax efficiency, wealth transfer and business exit planning. Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters. Sweet has been a long-term member of Carson Coaching and has implemented many of its principles throughout his career. Sweet Financial Partners was advised by Wise Rhino Group, which provides M&A advisory services for the financial services industry. “Bryan and his team exemplify the values and client-centric approach that Carson stands for,” Burt White, CEO of Carson Group, said in a statement. “Their expertise in comprehensive financial planning and commitment to a ‘life well lived’ mentality make them an ideal addition to our advisor community.” Beacon Pointe Advisors Adds Landmark Wealth Management Beacon Pointe Advisors announced its latest acquisition: Landmark Wealth Management Group, based in Lake Elmo, Minnesota. Landmark oversees approximately $1 billion in client assets under management across its four offices, which include Farmington, Minnesota; Hudson, Wisconsin; and San Jose, California. Established in 1977, Landmark has a team of founding partners and second-generation owners. John Underwood, Landmark’s chief financial and chief operating officer, will act as the incoming Beacon Pointe managing director. In addition to Underwood, Gary Tangwall and Todd Gillingham, 33 members will join Beacon Pointe. Landmark is Beacon Pointe’s fifth publicly announced registered investment advisory acquisition of 2024 and the first formal office presence for Beacon Pointe in Minnesota. “Beacon Pointe is ready to embark on this exciting chapter and enter new U.S. territory with Landmark,” Matt Cooper, Beacon Pointe’s president, said in a statement. “We’ve aimed to establish a more significant presence in the Midwest, and the Landmark team seamlessly met our objectives.” Journey Strategic Wealth Announces 2 Acquisitions Journey Strategic Wealth, a national RIA for independent advisers, has announced two acquisitions: Creative Financial Services of Colorado Springs, Colorado, and veteran adviser Chad Faulkenberry, formerly of Charles Schwab, who will expand its reach into Orlando. In Colorado Springs, Jill Isbell, known for her work in financial education, has integrated her firm into Journey, expanding its services. Isbell and Yenni Chesire, office manager, will continue to offer comprehensive financial planning and wealth management. Faulkenberry, an adviser who had managed $750 million in assets at Charles Schwab, will enhance Journey’s Richmond, Virginia, practice, which has grown 40% year-over-year, by extending its presence into Orlando. His expertise in serving high-net-worth families aligns with Journey’s growth strategy. Since its inception in 2021, Summit, New Jersey-based Journey has attracted eight advisory teams nationwide, driving an average top-line revenue growth of more than 70% for affiliated advisers.

In The Press
AUM soared by at least 26,263% over the past decade at these 25 RIAs

In The Press
25 RIAs that grew advisor headcounts by 1,200% or more

By Tobias Salinger | August 22, 2024 1:39 PMclick here to read the full article

In The Press
How Highly Successful Advisors Drive Organic Growth

How many times have we heard that advisors aren’t growing? Year in and year out we hear the stats about the lack of organic growth in the industry. We’re told that most advisors aren’t bringing on new clients with any kind of velocity or consistency; instead, they’re growing AUM by virtue of rising markets, or leveraging M&A strategies to drive inorganic growth. While the numbers certainly don’t lie when you’re looking at the industry as a whole, my perspective is skewed. I spend almost all of my time with advisors who, like me, are students of the industry with a deep passion for practice management. These advisors are committed to working on themselves and are obsessed with getting better for the sake of their clients. They are ever evolving as practitioners, with total conviction over their value propositions. It’s no surprise then that these advisors are in fact growing. And by a lot. Unlike the rest of the industry they are wildly successful at sustainable organic growth, acquiring new clients year over year without sacrificing experience or retention. The Four Key Organic Growth Characteristics So what makes these advisors different then the rest? I’ve worked with thousands of advisors, and I’ve found that there are five key characteristics that separate those who are organically growing from those who aren’t. 1. They spend the majority of their time on business development. I know this one seems obvious. But there is something unique here about how they manage to find time to do this that is worth noting. These advisors don’t typically find themselves “stuck” in non-revenue producing roles for an extended period of time. The minute they start to feel like their capacity is filling up or they’re spending too much time on operational tasks, they make a change. They hire talent, even if it means reducing their cash flow. They delegate and outsource, even if they know that the work won’t get done “as good as they would do it.” They adjust their business model - leave their back office, merge with another firm, raise capital  - no matter how painful or daunting the notion of “change” seems at the time. The fastest growing advisors are not dealing with custodians or compliance, processing paperwork, managing payroll, fixing the tech, negotiating with vendors, inputting data.  The list goes on and on. My point is: if you follow the pattern of business decisions made by the leaders of growing practices, you’ll find that those leaders are comfortable making (temporarily) uncomfortable or hard decisions. I’ve witnessed this firsthand at Journey. Advisors typically join us after realizing they are at a critical crossroads and need to make a change so that they can have the role, practice, life and future they want. So, how do you become someone who is comfortable being uncomfortable? The first step is being honest with yourself about what you really want, and who you want to be in the business. These are the two most important questions you could ever ask yourself as the leader of the practice.  You cannot simultaneously grow the practice, run the practice, manage the team and operations, and serve as an advisor to all your clients. Realistically, you could probably do one and a half of those well. And if growing the brand and bringing in new relationships is your strong suit, then all of your efforts (and business decisions) need to be shifted towards giving you more space and time to do that. On the flip side, if you hate the idea of being responsible for revenue growth, then you’ll either need to fill that gap by hiring someone to lead your growth efforts, or by joining forces with others who can alleviate the pressure. Either way, having conviction in what you want, and what you are willing to do and/or give up, is key to establishing your business development strategy. 2.  Business development isn’t a job, it is the fabric of their persona. If you talk to advisors who are consistently growing, they don’t think about business development as “sales.” They’re never afraid that they’re appearing salesy.. They don’t shy away from making a call to action. They follow up with prospects and check in with COIs.  They talk about the business and ask for the business, unafraid and unashamed. Why? Because they believe so deeply in their own value proposition that they feel it is their duty and obligation, as a steward of this profession, to tell more people about what they do. I call this the “relentless prospector” mindset. Think of it this way. Instead of dreading following up with a prospect, imagine feeling “excited” at the opportunity to change someone’s life. That is what the relentless prospector feels. With this mindset comes an ease in which one can weave their value proposition into conversations. Relentless prospectors wear their brand like a badge of honor, and get great joy out of spreading the word about all the great work they are doing. If you’re reading this thinking, “This is so not me,” I have two pieces of advice. The first is to self reflect. Every successful person suffers from imposter syndrome at some point. But for the best in the business, the desire to be great, to help more people, to build the practice, supersede those moments in time.  If imposter syndrome or a lack of conviction are holding you back, it's important to explore where there is misalignment. I have seen SO many advisors subconsciously hold themselves back because they no longer felt aligned with the firm they were at, or because they felt they were in the wrong partnership. Focus on making the necessary adjustments, and the mindset will follow. Second, spend as much time as you can during the work week engaging in activities that increase dopamine. (There is a reason why I don’t believe advisors should spend any time on the phone with the custodial service center, or fixing a broken tech aggregation.) Call your favorite COI. Talk to your best clients. Talk to clients and business partners who you know will validate you and reinforce your value proposition. Connect with people who you have helped and share that positive feedback and praise with your team.  Use the momentum to build your confidence… and then immediately call or email the prospect or COI you’ve been procrastinating. 3. They deliver an exceptional client experience. You’d be hard pressed to find a growing practice that was just … mediocre. Top teams are exceptional at delivering client service and consistently delighting clients. Typically these teams are extraordinarily consistent across each department and role in the practice. Everyone in the practice speaks the same language. They describe the value proposition the same way and can easily articulate what makes them special. More importantly, everyone in the practice recognizes that their best use of time is to either create the capacity for business developers to bring in new clients, OR focus on delivering exceptional service that turns new clients into raving fans. The specifics of “exceptional client service” can vary from client base to client base, but the best advisors in the business all get these aspects right: They are proactive. They’re scheduling reviews before clients have to ask to meet. They’re uploading quarterly performance reports automatically to their client vaults.  They’re reaching out to “nervous nelly” clients when markets are skittish. They deliver across the value chain. They are not just managing an investment portfolio. They are helping clients answer questions about insurance, mortgages, tax savings, budgeting, goals, health insurance, etc. They know their stuff and have built a network of professionals around them who also know their stuff. They care deeply about their profession and continue to educate themselves about the topics that are relevant to clients, so that clients don’t have to wait days or weeks for an answer to a question. There is cohesion among all the staff. The client can expect a similar (great) experience no matter who they are dealing with at the firm – fast response times, clear pre- and post-meeting communications, and proactive ongoing updates around their financial plan and progress. Their value proposition manifests in their engagement with clients. This is arguably the most important point. The best in the business recognize that what they say has to align with what they do. Here is a great example: If you cannot very quickly and clearly articulate what your team does to deliver exceptional client service (or differentiated service), spend time working on this. From enhancing firm retention to driving referrals to evangelizing your brand and its reputation, your existing clients are central to sustainable organic growth. Treat them that way. 4.  The brand - and marketing - transcends beyond the individual rainmaker. I’ve spent a lot of time talking about the solopreneur advisor-rainmakers who sit at the center of the fastest-growing practices in the industry. While it’s true that these firms typically have at least one PERSON driving the brand forward in the marketplace, it’s also true that the brand transcends beyond that one person. This may seem like another obvious point, but it is impossible to grow a brand without making a long-term investment in marketing. I talk to so many advisors who have little patience as it relates to marketing initiatives, especially those related to social media. They’ll post a few ghost written posts on LinkedIn,  or make some adjustments to their website and immediately get frustrated. “Why isn’t my SEO better?” “Why don’t I have more “likes” on my comments? “Why aren’t any leads coming in through my site?”  These advisors typically are trying to do it themselves or have an administrative assistant moonlighting as their marketing person. As sales and relationship people, we are driven by instant gratification. The idea of waiting years to build a following seems… unnatural. And for many advisors, it literally is unnatural to go on social media and post personal updates about their lives and practices. (For the record, I totally understand the frustration with how long it takes to see results and how much of a waste it can feel like to spend $10, $20, $30k on marketing only to realize that all your new clients are still coming from your personal relationships and referrals.) The key for the best in the business, though, is that they understand that an investment in marketing is simply a necessity for the business. And that results need to be measured over the course of months and years, not days. Here is what I’ve seen these folks do well as it related to marketing: Find a marketing firm that will actually execute on their behalf. While it’s important to talk strategy, it’s also important to have professionals “doing the things” that advisors are not trained to do, nor should be spending their time doing (editing videos, writing blogs, creating graphics, etc.) Identify their “marketing edge” by correctly aligning what they want to produce with what their ideal consumer is looking for. If your clients are retired, LinkedIn isn’t where you should be posting (although you may find COIs there).  If your clients are Gen X female divorcees, posting generic financial planning tips probably won’t catch their attention. But creating customized, highly specific content – the top three financial moves to make immediately after a divorce, for example – will. They create authentic content in different formats, consistently and relentlessly.  It almost feels as if they are “following” the prospect along their life’s journey, day in and day out providing helpful tips and valuable information. They steer clear of the red shiny objects. No need to make a TikTok account or pay for a radio ad if your ideal clients are not consuming content on either of those media. They aren’t afraid to spend the money or the time. Statistics tell us firms spend anywhere from 2-10% of revenue on marketing.  As far as time, my rule of thumb is six months. Give an idea or new strategy a solid six months to see if you can get into a rhythm. They have realistic expectations with regard to both budget and timing. The more you’re willing to spend on marketing, the more opportunities you’ll have to get in front of your ideal clients, which translates to more qualified at-bats for an average lower cost. And while marketing can definitely produce short-term wins, it is by nature a long game. Implementing an SEO strategy, for example, might not yield measurable results for up to a year. It is also far more expensive than advisors realize. Think of marketing, good marketing, like your always-on brand evangelist. Once you get the engine running repeatably and sustainably, it’s going to keep working to drive growth for your firm. The Road to Organic Growth Starts Here So where do you start? I’d start with reflecting on what you’re prepared to do - or not do – in order to grow  practice. Allow your vision, even if it’s a short term vision, to guide you on your next steps. Next, I’d construct a game plan for creating enough capacity in the practice for you to be able to forge ahead.

In The Press
FINTECH VIEWS: How Highly Successful Advisors Drive Organic Growth

By: Penny Phillips, President, Partner, Journey Strategic WealthHow many times have we heard that advisors aren’t growing? Year in and year out we hear the stats about the lack of organic growth in the industry. We’re told that most advisors aren’t bringing on new clients with any kind of velocity or consistency; instead, they’re growing AUM by virtue of rising markets, or leveraging M&A strategies to drive inorganic growth. While the numbers certainly don’t lie when you’re looking at the industry as a whole, my perspective is skewed. I spend almost all of my time with advisors who, like me, are students of the industry with a deep passion for practice management. These advisors are committed to working on themselves and are obsessed with getting better for the sake of their clients. They are ever-evolving as practitioners, with total conviction over their value propositions. It’s no surprise then that these advisors are in fact growing. And by a lot. Unlike the rest of the industry, they are wildly successful at sustainable organic growth, acquiring new clients year over year without sacrificing experience or retention.The Four Key Organic Growth CharacteristicsSo what makes these advisors different then the rest? I’ve worked with thousands of advisors, and I’ve found that there are five key characteristics that separate those who are organically growing from those who aren’t. 1. They spend the majority of their time on business development I know this one seems obvious. But there is something unique here about how they manage to find time to do this that is worth noting. These advisors don’t typically find themselves “stuck” in non-revenue-producing roles for an extended period of time. The minute they start to feel like their capacity is filling up or they’re spending too much time on operational tasks, they make a change. They hire talent, even if it means reducing their cash flow. They delegate and outsource, even if they know that the work won’t get done “as good as they would do it.” They adjust their business model – leave their back office, merge with another firm, raise capital  – no matter how painful or daunting the notion of “change” seems at the time. The fastest-growing advisors are not dealing with custodians or compliance, processing paperwork, managing payroll, fixing the tech, negotiating with vendors, inputting data. The list goes on and on. My point is: if you follow the pattern of business decisions made by the leaders of growing practices, you’ll find that those leaders are comfortable making (temporarily) uncomfortable or hard decisions. I’ve witnessed this firsthand at Journey. Advisors typically join us after realizing they are at a critical crossroads and need to make a change so that they can have the role, practice, life and future they want. So, how do you become someone who is comfortable being uncomfortable? The first step is being honest with yourself about what you really want, and who you want to be in the business. These are the two most important questions you could ever ask yourself as the leader of the practice.  You cannot simultaneously grow the practice, run the practice, manage the team and operations, and serve as an advisor to all your clients. Realistically, you could probably do one and a half of those well. And if growing the brand and bringing in new relationships is your strong suit, then all of your efforts (and business decisions) need to be shifted towards giving you more space and time to do that. On the flip side, if you hate the idea of being responsible for revenue growth, then you’ll either need to fill that gap by hiring someone to lead your growth efforts, or by joining forces with others who can alleviate the pressure. Either way, having conviction in what you want, and what you are willing to do and/or give up, is key to establishing your business development strategy. 2. Business development isn’t a job, it is the fabric of their persona If you talk to advisors who are consistently growing, they don’t think about business development as “sales.” They’re never afraid that they’re appearing salesy. They don’t shy away from making a call to action. They follow up with prospects and check in with COIs.  They talk about the business and ask for the business, unafraid and unashamed. Why? Because they believe so deeply in their own value proposition that they feel it is their duty and obligation, as a steward of this profession, to tell more people about what they do. I call this the “relentless prospector” mindset. Think of it this way. Instead of dreading following up with a prospect, imagine feeling “excited” at the opportunity to change someone’s life. That is what the relentless prospector feels. With this mindset comes an ease in which one can weave their value proposition into conversations. Relentless prospectors wear their brand like a badge of honor, and get great joy out of spreading the word about all the great work they are doing. If you’re reading this thinking, “This is so not me,” I have two pieces of advice. The first is to self-reflect. Every successful person suffers from imposter syndrome at some point. But for the best in the business, the desire to be great, to help more people, to build the practice, supersede those moments in time. If imposter syndrome or a lack of conviction are holding you back, it’s important to explore where there is misalignment. I have seen SO many advisors subconsciously hold themselves back because they no longer felt aligned with the firm they were at, or because they felt they were in the wrong partnership. Focus on making the necessary adjustments, and the mindset will follow. Second, spend as much time as you can during the work week engaging in activities that increase dopamine. (There is a reason why I don’t believe advisors should spend any time on the phone with the custodial service center, or fixing a broken tech aggregation.) Call your favorite COI. Talk to your best clients. Talk to clients and business partners who you know will validate you and reinforce your value proposition. Connect with people who you have helped and share that positive feedback and praise with your team.  Use the momentum to build your confidence… and then immediately call or email the prospect or COI you’ve been procrastinating. 3. They deliver an exceptional client experience You’d be hard-pressed to find a growing practice that was just … mediocre. Top teams are exceptional at delivering client service and consistently delighting clients. Typically these teams are extraordinarily consistent across each department and role in the practice. Everyone in the practice speaks the same language. They describe the value proposition the same way and can easily articulate what makes them special. More importantly, everyone in the practice recognizes that their best use of time is to either create the capacity for business developers to bring in new clients, OR focus on delivering exceptional service that turns new clients into raving fans. The specifics of “exceptional client service” can vary from client base to client base, but the best advisors in the business all get these aspects right: They are proactive. They’re scheduling reviews before clients have to ask to meet. They’re uploading quarterly performance reports automatically to their client vaults. They’re reaching out to “nervous nelly” clients when markets are skittish. They deliver across the value chain. They are not just managing an investment portfolio. They are helping clients answer questions about insurance, mortgages, tax savings, budgeting, goals, health insurance, etc. They know their stuff and have built a network of professionals around them who also know their stuff. They care deeply about their profession and continue to educate themselves about the topics that are relevant to clients so that clients don’t have to wait days or weeks for an answer to a question. There is cohesion among all the staff. The client can expect a similar (great) experience no matter who they are dealing with at the firm – fast response times, clear pre- and post-meeting communications, and proactive ongoing updates around their financial plan and progress. Their value proposition manifests in their engagement with clients. This is arguably the most important point. The best in the business recognize that what they say has to align with what they do. Here is a great example: A firm that touts its “deep care and intent listening” as one of its core value proposition tenets would ensure that they’re practicing active listening in every meeting, engaging in ongoing E.Q. training and development, and providing a communication assessment to all new clients. If you cannot very quickly and clearly articulate what your team does to deliver exceptional client service (or differentiated service), spend time working on this. From enhancing firm retention to driving referrals to evangelizing your brand and its reputation, your existing clients are central to sustainable organic growth. Treat them that way. 4. The brand – and marketing – transcends beyond the individual rainmaker I’ve spent a lot of time talking about the solopreneur advisor-rainmakers who sit at the center of the fastest-growing practices in the industry. While it’s true that these firms typically have at least one PERSON driving the brand forward in the marketplace, it’s also true that the brand transcends beyond that one person. This may seem like another obvious point, but it is impossible to grow a brand without making a long-term investment in marketing. I talk to so many advisors who have little patience as it relates to marketing initiatives, especially those related to social media. They’ll post a few ghost-written posts on LinkedIn, or make some adjustments to their website and immediately get frustrated. “Why isn’t my SEO better?” “Why don’t I have more “likes” on my comments? “Why aren’t any leads coming in through my site?” These advisors typically are trying to do it themselves or have an administrative assistant moonlighting as their marketing person. As sales and relationship people, we are driven by instant gratification. The idea of waiting years to build a following seems… unnatural. And for many advisors, it literally is unnatural to go on social media and post personal updates about their lives and practices. (For the record, I totally understand the frustration with how long it takes to see results and how much of a waste it can feel like to spend $10, $20, $30k on marketing only to realize that all your new clients are still coming from your personal relationships and referrals.) The key for the best in the business, though, is that they understand that an investment in marketing is simply a necessity for the business. And that results need to be measured over the course of months and years, not days. Here is what I’ve seen these folks do well as it related to marketing: Find a marketing firm that will actually execute on their behalf. While it’s important to talk strategy, it’s also important to have professionals “doing the things” that advisors are not trained to do, nor should be spending their time doing (editing videos, writing blogs, creating graphics, etc.) Identify their “marketing edge” by correctly aligning what they want to produce with what their ideal consumer is looking for. If your clients are retired, LinkedIn isn’t where you should be posting (although you may find COIs there). If your clients are Gen X female divorcees, posting generic financial planning tips probably won’t catch their attention. But creating customized, highly specific content – the top three financial moves to make immediately after a divorce, for example – will. They create authentic content in different formats, consistently and relentlessly. It almost feels as if they are “following” the prospect along their life’s journey, day in and day out providing helpful tips and valuable information. They steer clear of the red shiny objects. No need to make a TikTok account or pay for a radio ad if your ideal clients are not consuming content on either of those media. They aren’t afraid to spend the money or the time. Statistics tell us firms spend anywhere from 2-10% of revenue on marketing. As far as time, my rule of thumb is six months. Give an idea or new strategy a solid six months to see if you can get into a rhythm. They have realistic expectations with regard to both budget and timing. The more you’re willing to spend on marketing, the more opportunities you’ll have to get in front of your ideal clients, which translates to more qualified at-bats for an average lower cost. And while marketing can definitely produce short-term wins, it is by nature a long game. Implementing an SEO strategy, for example, might not yield measurable results for up to a year. It is also far more expensive than advisors realize. Think of marketing, good marketing, like your always-on brand evangelist. Once you get the engine running repeatably and sustainably, it’s going to keep working to drive growth for your firm. The Road to Organic Growth Starts Here So where do you start? I’d start with reflecting on what you’re prepared to do – or not do – in order to grow practice. Allow your vision, even if it’s a short-term vision, to guide you on your next steps. Next, I’d construct a game plan for creating enough capacity in the practice for you to be able to forge ahead. I have worked with thousands of advisors as an independent industry coach and now, in my role as Journey’s President and co-founder, I can say I’ve personally witnessed our advisors grow at above-average rates year after year. I am always willing to lend an ear to advisors looking to achieve the next level of success. Feel free to send me a message or get in touch with our team here.BIO: Penny Phillips has spent most of her career coaching and consulting financial advisors and institutions. She is the co-founder and President of Journey Strategic Wealth, a Registered Investment Adviser built for advisors seeking independence and hands-on practice management support. Prior to founding Journey, Penny founded Thrivos Consulting, a practice management coaching company. She has worked in various leadership positions across the financial services industry and has authored multiple practice management training programs focused on helping financial advisors prepare for the next generation of wealth holder.