New and Improved

Recent news about the “spin off” from AMG of Wealth Partners Capital Group, made me proud to be an American!  The resiliency of capitalism’s desire to improve was front and center.  AMG is not the only wealth advisory firm that has embraced a new and improved approach. Silicon Valley does this constantly and terms it a pivot.  When firms realize that their products or services are not attracting new clients or are not generating enough profit to satisfy investors they pivot. What are the components of a pivot or a new and improved product or service?  Let’s take a look.

What’s Working?

An effective pivot does NOT blow-up all items of the original business.  The firm must identify what is working and stick with that at a minimum.  In wealth management what is working is independent and unconflicted advice.

What Isn’t Working?

We can move now to what isn’t working.  In the case of AMG what wasn’t working was the target market of firms with greater than $4 billion in AUA was not large enough to support their initial projections.  The largest target market of independent firms is aging and using antiquated technology.  This should create ample opportunities for acquisitions for the new and improved firm.

How can we improve?

AMG is not alone.  Other firms are experiencing challenges and are making changes.  HighTower has evolved since its founding to establish numerous new service models.  If it works with toothpaste let’s see how it works for HighTower and other independent firms.  Dynasty has added new services to their original offering like a TAMP and purchasing an RIA's cash flow to aid with advisor transition.   United Capital has borrowed a page from large RIA’s that came before them by offering some of their in-house software to outside firms.  The new plans of each firm can be validated by the market research of DeVoe and Company.  The final area that needs to be improved and has reared its ugly head with most of the incumbent firms is Private Equity.  Since the initial business projections of most firms have not been met the pressure from Private Equity has forced their hand to pivot.  Firms that were bootstrapped or funded by bank debt are in better shape here.

I’m sure there will be a many new and improved services for independent wealth advisors but until then Wealth Partners Capital Group is the best solution we’ve seen.  I also LOVE my new and improved Crest.


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