The constant search for size and scale among independent wealth management enterprises has some financial advisors questioning whether bigger is indeed better – especially RIAs seeking a higher level of support.
To some industry watchers, larger enterprises can often leverage superior resources to drive efficiencies, innovation and growth for independent RIAs. Others, though, question what advisors lose with a growth-at-all-costs ecosystem.
Is there a best-of-both-worlds framework? In other words, is it possible to do deals that drive innovation and scale but at the same time complement the independent space’s traditional standards of freedom, flexibility choice and customized service?
When transactions are thoughtful and strategic, the answer is yes. All stakeholders can benefit.
Getting there isn’t easy, however. Alignment between deal partners, with emphasis on a shared commitment to nurturing a culture of service to financial advisors, is key.
To explore further, we caught up recently with Amit Dogra, President and Chief Innovation Officer at tru Independence, which was acquired by Sanctuary Wealth in May.
Dogra oversees the tru’s business development, relationship management, IT and financial functions and helps spearhead new initiatives.
From IARs to RIAs, Redefining Independence
When the Sanctuary-tru combination was announced earlier this year, the firms said it created a wealth management platform that fully supports the independent RIA channel across the broadest array of affiliation models. Both firms say they specialize in serving elite financial advisors who work with high-net-worth clients.
tru has built its reputation catering to advisors seeking to operate under their own Form ADV. Sanctuary has primarily attracted breakaway practices seeking both independence and higher levels of support under a shared ADV.
Each firm has retained its corporate identity and leadership teams while offering affiliated financial advisors the ability to take advantage of opportunities for growth, innovation and collaboration offered through the partnership between tru and Sanctuary.
Dogra notes that financial advisors who partner with tru tend to expect three things: great people and great service, transparency and value, and the ability to scale and grow their practices.
In Dogra’s view, tru’s ability to deliver on these essentials is what sets it apart. Equally important, he says, is the firm’s atypical fee structure (advisors keep 100% of revenue and pay tru a percentage), specialized services (e.g., acting as CCO for an advisor under their own ADV) and unique, integrated fintech platform, truView.
DWN: Now that we’re approximately six months past the acquisition announcement, how is the alignment of tru and Sanctuary going?
Amit Dogra: Put simply, thanks to our acquisition by Sanctuary, tru Independence is both open for business and better positioned than ever to drive growth and success for the RIA firms we serve.
Not only did we enjoy a very smooth transition process, but the expanded resources, expertise and solutions that we can access through Sanctuary empowers tru to maximize freedom, flexibility, control and choice for the industry’s most elite financial advisors who have or want to have their own RIA firm.
Underscoring the strong cultural fit, tru’s leadership team and multiple partner firms were able to attend Oasis, our first joint national conference with Sanctuary, just last month. The energy and positivity there were palpable, and we’re thrilled to be working with Sanctuary to redefine independence in the RIA channel of wealth management.
DWN: How does tru’s leadership team plan to leverage Sanctuary Wealth’s resources, offerings and expertise to elevate the firm’s offerings for the RIAs served by tru?
AD: Providing our partner firms with exceptional support, expertise and resources so they can successfully grow and fulfill their key business objectives remains front and center to our shared mission.
Since the acquisition, the depth and breadth of resources we can make available to tru advisors has been incredible. For example, we can now leverage the Sanctuary balance sheet to provide upfront and transition capital to advisors. We also have access to a robust set of investment services, such as capital markets and alternatives. Then there are retirement plan solutions, a friendly broker-dealer and so much more.
These resources, coupled with tru’s core services for advisors who want their own ADV, help advisors scale and grow. Together, we are providing a comprehensive ecosystem of industry-leading solutions that empower sophisticated advisors to build successful independent businesses.
DWN: What key trends will drive innovation and growth across the RIA space over the next three to five years?
AD: There are three key areas that will drive innovation and growth in the RIA space: Service expansion, technology and the Great Wealth Transfer.
First, there’s the escalating demand for service expansion by financial advisors and their end clients. As the industry continues to evolve and provide more services to support wirehouse breakaways, sophisticated advisors serving demanding clients will not only want to join a firm with a breadth and depth of resources and expertise, but they’ll also be looking for the path of least resistance in how to operate effectively.
Firms that can make the complex simple and create a glide path for advisors to get to where they want to go faster and more effectively will see the most interest from advisors who are looking for independence.
Next, in terms of technology, certain developments such as generative AI will certainly drive innovation in our industry over the coming years. With that said, while new tech will change how we engage with and provide services to clients, advisors must remember that we are in the relationship business. We cannot widgetize the client experience. Firms that know how to leverage technology to provide better human-to-human experiences will see the most success.
Finally, the Great Wealth Transfer from older individuals to their younger heirs is continuing to intensify. Financial advisors who succeed in capturing or retaining these assets will be the ones who build the most successful businesses.
The key to this will not necessarily be who is inheriting the assets but knowing where those assets are being held today.
Without question, the held-away assets present a massive opportunity for advisors to grow their books of business. Knowing how to find and gain control of those assets, rather than simply managing them, will be a determining factor in capturing the transfer of wealth.
DWN: If you could share just one key message that you’d like the broader industry to know about tru today, now that the company is part of Sanctuary Wealth, what would it be?
AD: When it comes to driving growth and success through personalized service for independent RIA firms, tru has always been one of the best-kept secrets in our industry.
Now that we are part of Sanctuary, the secret is out, and that is a terrific thing for tru, our partner firms and the broader industry.
Sanctuary is a recognized leader for developing and rolling out best-in-class tools and solutions within the RIA channel, and the partner firms we serve are seeing the benefits of this.
With Sanctuary in our corner, we have an unparalleled platform for highly sophisticated advisors, a combined enterprise that offers the broadest possible range of independent business model affiliation options and more capabilities than ever before.
