Big Move to Independence: $6B Team Forms 71 West Capital Partners

Breaking Away from Tradition: A Shift in Wealth Management

This month, a prominent team of advisors from UBS has stepped into the independent advisory landscape by founding 71 West Capital Partners, marking a significant departure from traditional wealth management structures. Led by seasoned advisors Denis Cleary and Greg Devine, this bi-coastal registered investment advisor aims to serve ultra-high-net-worth clients with a tailored approach that reflects their unique financial needs. Notably, the team manages approximately $6 billion in assets, cementing their status as a noteworthy player in the RIA sector.

Why Independence Matters

The trend of financial advisors leaving established wirehouses like UBS for independence is gaining traction, representing a shift towards client-centric service models. According to recent analyses, the demand for personalized financial planning is prompting advisors to seek greater control over their practices. Cleary and Devine’s move comes amidst a wave of similar departures; just last month, another team transitioned out of UBS, creating a multi-family office with significant backing.

The independent advisory space allows advisors more flexibility to innovate and cater to the specific needs of their clientele. As Cleary articulates, advisors now focus on converging planning and investment management without the constraints of corporate structures. This autonomy is appealing not only to advisors seeking to enhance their service offerings but also to clients desiring a more hands-on, customizable experience.

The Bigger Picture: Trends in RIA Growth

The trajectory of RIA formation is not a mere coincidence but reflects broader changes in the financial advisory industry. A recent report highlighted that UBS has seen a net loss of over 100 advisors this year alone, with many opting for independence as the regulatory environment and client needs evolve. Industry insiders suggest that the push towards building RIAs will only strengthen as more advisors appreciate the benefits of independent practices.

In a striking parallel, another high-profile team recently launched Family Office Partners after leaving UBS, similarly catering to families navigating complex financial scenarios. Such developments underline an ongoing trend where multi-family offices and RIAs are preferred by affluent clients due to their bespoke service offerings.

Future Insights: The Landscape Ahead

Looking ahead, the motivations behind these independent shifts suggest a robust future for RIAs like 71 West Capital Partners. With BNY Pershing providing custodial services, the firm is poised for operational efficiency as it builds its clientele. The rise of technology and the increasing complexity of financial situations faced by clients serve as catalysts for this growth.

Advisors looking to switch to indeterminate avenues can expect to encounter increased competition but also greater opportunities to differentiate themselves in a space that prioritizes client relations and tailored solutions.

Implications for Financial Planning

For financial planners and wealth advisers, the emergence of these independent firms signals a crucial pivot. Understanding the nuances of client expectations and adapting service strategies to meet those demands is essential. The successful establishment of firms like 71 West Capital Partners reinforces the value of innovation in financial planning.

As advisors continue to navigate their careers with independence in mind, embracing personalized financial planning strategies is not just beneficial; it is imperative for retaining high-net-worth clients.

Take Action: Embrace Change in Financial Planning

The landscape of wealth management is undergoing a transformation. Financial planners need to anticipate these changes, adapting their services to offer customized solutions that resonate with clients' evolving needs. The success of newly formed RIAs like 71 West Capital Partners exemplifies the impact of these shifts, urging advisors to evaluate their own positioning within this dynamic environment.