McKinsey Finds White Knight in Neuberger Berman for its Side-Slipping, $26-Billion RIA, Exposed by SEC Ruling; Neuberger Scores a Pipeline of Senior Partners and Unshackles the RIA to Compete as a Third Party
The New York consultancy took nearly five years to unload the wealth and asset manager; McKinsey now admits it was not a 'natural' owner.

RIA M&A: What To Expect Next After Record-Breaking Year
Fresh data shows a notable rise in the pace of mergers and acquisitions in what is still in some ways a fragmented wealth management industry. However, industry figures warned that market pullbacks and rate changes could derail some of this activity in future.

Michael Kitces is asking serious questions about whether XY Planning Network should keep Schwab as its exclusive RIA custodian for 2,000 firms after slap in the face
Kitces, the self-professed strongest advocate for Schwab custody, now thinks Schwab is doubling down on a business model with striking parallels to his own, heedless of his loyalty. Article quotes Tiburon highlighting that The Charles Schwab Corporation and other custodians are migrating into other revenue channels, including model marketplaces, TAMPs, break-away broker set up services, and M&A brokerage to grow their businesses and better serve their fee-based financial advisor (RIA) clients.

Will Integration Make Wealthspire An Industry Leader?
Our United States correspondent examines developments at Wealthspire - now under new ownership - and how the firm intends to compete with a number of significant businesses. It is part of a trend of private equity firms moving to true platform acquisition, in the words of an industry figure. Article quotes Tiburon highlighting that Madison Dearborn's move to integrate its workplace retirement and wealth businesses is a savvy move and hopes to drive lead generation within Wealthspire's higher-margin wealth businesses.

The Hot Trends Behind Cresset's Big OCIO Deal
Our United States correspondent takes a look at Cresset's merger with a non-discretionary consultancy, aka outsourced chief investment officer - and not an RIA. He talks to industry figures about the rationale for the deal, and what it says about wider trends. Article quotes Tiburon highlighting that Cresset is the latest fee-based financial advisor (RIA) to merge with an investment consultant, boosting assets under advisement quickly and putting Cresset in a select tier of the largest and most multi-faceted fee-based financial advisors (RIAs).

Why the Number of BDs Could Drop 20% in Five Years
FINRA has published its annual broker-dealer industry snapshot report, showing the shift from the traditional broker-dealer model to the registered investment advisor model is still going strong. Article quotes Tiburon highlighting that the number of independent broker/dealers could fall fifteen-to-twenty percent over the coming five years as smaller independent broker/dealers are consolidated away, and notes that clients, financial advisors, firms, & the media all seem to favor the fee-based financial advisor (RIA) model.

BlackRock Adds Fidelity's Retail Legend and Morgan Stanley Ex-Retail Chief, Sparking Belief Larry Fink is Eyeing Wealth Channel
The Wall Street asset giant added Kathleen Murphy and Greg Fleming to its board and retail investors know iShares and Aladdin. Article quotes Tiburon suggesting that this appointment is no guarantee that BlackRock will enter retail distribution directly but also highlights other firms with investment management roots such as Fidelity Investments & The Vanguard Group do have sizeable retail divisions.

Week in Preview
Today, the Tiburon Strategic Advisors team will kick off its 48th Tiburon CEO Summit. The three-day conference is being held at the InterContinental Boston Hotel in Boston. Article mentions Tiburon's semi-annual Tiburon CEO Summit beginning in Boston, MA on April 28-30, 2025.

LPL is Buying Commonwealth for $2.7 Billion. What Happens Next?
Monday's news that LPL Financial is buying Commonwealth Financial Network for $2.7 billion in cash led to a mix of reactions from financial services executives and industry watchers. Article quotes Tiburon highlighting that Commonwealth Financial Network has built a terrific firm of high-end independent reps with significantly higher average assets per rep than LPL Financial Holdings.

Why Does LPL Want $4 Billion?
LPL Financial filed a shelf registration, or S-3, with regulators late Monday to raise $4 billion. Article quotes Tiburon highlighting that LPL Financial Holdings has been a very aggressive and successful acquirer and that it may try to acquire a midsize to large firm that would allow it to grow its employee advisor channel or push further into the high-net-worth market with an upscale RIA platform acquisition.

Schwab to Raise Advisor Network Referral Fees by 5%
Charles Schwab is increasing fees for advisors participating in its Schwab Advisor Network referral program. Article quotes Tiburon highlighting the value in custodian referrals and that it is not a surprise to see the Charles Schwab Corporation reassess fees for its referral program as they have not changed for a long time.

Commonwealth in Talks to Sell Minority Stake
Commonwealth Financial Network is said to be pursuing a sale of a minority stake in the company. Article quotes Tiburon highlighting robust private equity interest that other independent broker/dealers have drawn in recent years and the lack of opportunities that exist at this scale.

McKinsey Suddenly Puts its Secretive $23-Billion RIA Under Strategic Review with M&A Shop; a Spin-Off or Sale a Possible Outcome; it Follows November 30 London Newspaper Exposé
The New York super-consultancy retained Ardea Partners, a 2017 Goldman Sachs breakaway, to suss out its options for the in-house wealth manager and hedge fund company. Article quotes Tiburon highlighting MIO Partners' potential growth strategy and the impact of scale for investment opportunities in the booming private markets.

Conference Certification Firm Choir to Shut Down at Year-End
Choir, a three-year-old firm promoting diversity in the financial services industry through a conference certification service, will close effective December 31. Article mentions unacceptable behavior by fireside chat participant at Tiburon CEO Summit XXXVII.

Schwab Reviewing Advisor Network Referral Fees
Charles Schwab is reviewing advisor participation fees within the Schwab Advisor Network client referral program, a significant source of new business for some RIAs. Article quotes Tiburon highlighting the success of The Charles Schwab Corporation's referral program and the importance of custody referrals for independent advisors growth in assets under management.

Fidelity Investments Surges Past $15 Trillion, on its Way to $16 Trillion, After its CEO Made One Big, Contrarian Bet and Two Smaller Plays that Have the Giant Hopping
The Boston company grew $800 billion per quarter on average through nine months, and just keeps hiring to deepen relationships, with crypto and digital engagement giving it an edge. Article quotes Tiburon highlighting Fidelity Investments' strong headcount growth.

Week in Preview
Today, the Tiburon Strategic Advisors team will kick off their Tiburon CEO Summit XLVII. The three-day conference will be held at the Four Seasons in San Francisco. Article mentions Tiburon's semi-annual Tiburon CEO Summit beginning in San Francisco, CA on October 28-30, 2024.

Walter Bettinger Joins Charles Schwab Corporation Mass Executive Exodus, Leaving a very Complex CEO Puzzle to Solve for his Young, Ex-McKinsey Successor
CEO grew the company by $8 trillion in assets to 'powerhouse' status amid significant accomplishments - sans RIA mention - but shares are sagging, and its bank remains a sore subject. Article quotes Tiburon highlighting Walt Bettinger's legacy and The Charles Schwab Corporation's dominance in fee-based financial advisor (RIA) custody.

LPL CEO's Firing Catches Some by Surprise
The firing by LPL Financial on Tuesday of its CEO, Dan Arnold, caught many industry watchers by surprise, with some calling the move unfortunate. Article quotes Tiburon highlighting the success that LPL Financial Holdings enjoyed under Dan Arnold's leadership.

Industry Expects Envestnet Restructuring After Bain Purchase
Our US correspondent delves into the story behind Bain Capital's purchase of Envestnet this week, and considers what the future holds for the tech and platform firm. Article quotes Tiburon saying that private ownership should allow Envestnet to renew its focus on growth and better integrate its product offerings.

Sleeping Giant McKinsey & Company Hires Eric Clarke as it Awakens to $9 Trillion RIA Business and Plays Catch-up
The New York City consulting giant quietly made the Orion founder and ex-CEO a McKinsey senior advisor two months after he stepped down last year. Article quotes Tiburon saying that the large consultancy firms traditionally lack the operating experience that Eric Clarke brings and that his role will involve wowing clients and coaching McKinsey team members.

Bernie Clark, Renowned in RIA Circles, is the Highest-Profile Executive to Leave in a Schwab Shake Out of Veteran Talent, But Only After His Unmatched Feat -- Adding Nearly 9,000 RIAs and $4 Trillion in Assets to Schwab Custody
The 14-year head of Schwab RIA custody kept both CEO Walter Bettinger and heads of 15,000 RIAs happy in an incredible juggling act of corporate and entrepreneurial goals. Article quotes Tiburon saying that Bernie Clark has established himself as maybe the most important person in the growth of the fee-based financial advisor (RIA) market.

Five Lessons From 150 WealthTech Podcasts
What's up with the latest dramatic changes in our industry? I'm referring to the flurry of senior-level comings and goings at fintech and wealth and asset management firms. Article quotes Tiburon CEO Summit XLVI Keynote Presentation highlighting that the wealth management indstry is not growing much if you take out the effects of the markets and mergers & acquisitions.

RIA Blockbuster: Colony Merges With Buckingham
The combination of The Colony Group and Buckingham Strategic Wealth into a $115 billion behemoth with over 20,000 clients and more than 90 offices around the country may not technically be a mega-merger, since both firms are Focus Financial Partners affiliates, but it sure comes close. Article quotes Tiburon saying that the transaction could be the first of many consolidations of fee-based financial advisor (RIA) consolidators.

Gen X Needs Social Security Planning Now
Marketers and demographers call them the “Forgotten Generation.” Still, advisors do well to remember what Gen X presents: An opportunity to help individuals with a rising sum of investable assets and an urgent need for retirement planning. Article quotes Tiburon CEO Summit XLVI Keynote Presentation highlighting that about $50 trillion in Generation X investable assets will be in motion in the next twenty years, with Generation X also inheriting the largest share of the great wealth transfer.

Three Pivotal Trends Impacting Growth
RIAs should focus on expanding client services, adopting a team-based approach, and meeting the needs of Gen X. Article quotes Tiburon saying that fee-based financial advisors (RIAs) continue to broaden the range of services they offer, encompassing tax, estate, insurance, lending, and cash management.

B/D CEOs Ride Stock Performance to Pay Bumps
Many leaders of independent broker-dealers in 2023 saw pay bumps in line with their companies' stock performance, while bank-tied wealth managers largely reported declines in total compensation for their CEOs. Article quotes Tiburon saying that the independent channels continue to grow at faster rates than the bank-tied firms

RIA Custodian Apex Adds Chip Roame to Board
Apex Fintech Solutions has appointed Tiburon Strategic Advisors founder Chip Roame to its board of directors. Article summarizes Tiburon managing partner's appointment to the board of Apex Fintech Solutions.

Rudy Adolf Joins Rajini Kodialam's Tech Startup as Co-CEO
The former CEO of RIA financier Focus Financial Partners is reuniting with Kodialam at her new venture, E-3 Tech. Article mentions Tiburon's semi-annual Tiburon CEO Summit beginning in Boston, MA on April 8-10, 2024.

Is Organic Growth Over in Wealth Management?
Today's wealth management business is not a growth stock. It's more like your grandmother's passbook savings account. Remove the effects of markets, mergers and acquisitions (M&A), and our industry has only had a 3% to 4% growth rate for a long time. There's scant evidence to suggest a change in that pattern soon. Article quotes Tiburon saying that the wealth management industry's organic growth in 2022 was an anemic 2.4% and not to expect a turnaround story in 2023 data.

RIAs Using Top-Dog Schwab More Likely to Switch, Add Custodians
20% of Schwab-affiliated advisors said they planned to change or add another custodial relationship within the next 18 months, according to a T3 and Inside Information Software survey. Article quotes Tiburon saying that the survey results are a typical outcome for larger firms, especially given The Charles Schwab Corporation's ongoing integration of TD Ameritrade accounts and financial advisors.