The Next Big Thing: Private Equity Disrupting the Landscape for the Best Teams

A Special Industry Update with Louis Diamond

Our Industry Updates are designed intentionally to keep you informed about the latest evolutions of the landscape.

And this is a big one: Especially for top wirehouse teams looking to make the leap to independence.

Historically, meaningful upfront capital and independence were an “either-or” scenario—not an “and.” Meaning you had to choose between being independent or opting for transition capital.

And we’re following what seems to be the next big thing: A way for wirehouse teams to monetize while entering the RIA space.??

While private equity has been all over the RIA channel for several years, they’ve missed out on the breakaway movement. That is, until now, as several top private equity firms have actually cracked the code of investing directly in wirehouse teams on day one.

These firms provide liquidity and upfront capital to a breakaway team, as well as the scaffolding and support resources needed to launch the independent business.

It’s opening a new world of potential for advisors across the wealth management landscape.

In this special episode, Mindy Diamond and Louis Diamond explore the topic, answering the top questions advisors have, including:

• Why are private equity firms interested in wirehouse teams—and what’s driven this recent uptick in attention?
• Private equity has been investing in the wealth management industry for a long time—what’s changed, and why this recent enhanced interest in wirehouse teams?
• What’s the appeal for advisors—and who are those most attractive to private equity firms?
• What are the positives of a private equity firm investing in a breakaway—and what are the negatives?
• What are the different ways an advisor can partner with a private equity firm—and what are some examples of those who have gone down this path?
• How are deals structured—and where does the infrastructure come from?

It’s an evolution of the industry that we anticipate will open up a new world of opportunity across the landscape. And that’s good news: Because more opportunity creates more competition—and competition is good for everyone. It’s an episode that will enhance your knowledge of a rapidly changing wealth management landscape.

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Why a $5B UBS Breakaway Team Set Out to Build the “Boutique Firm of the Future” - Ex-UBS $5B advisors, Rob Sechan and Jeff Kobernick found that servicing their UHNW clients became difficult at the wirehouse and wanted more than other firms offered. So they built RIA NewEdge Wealth with EdgeCo Holdings and other UBS veterans. Listen->

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You can also listen to the full episode on our?website, as well as on?Apple Podcasts,?Google Podcasts,?Stitcher?or?Spotify.