Why Moneta's Focus on Personal Relationships Impacts Financial Planning Trends

Unpacking &Partners' Latest Wins: What It Means for Financial Advisors

Update &Partners Gains Traction in Competitive LandscapeIn a significant shift in the financial advisory domain, &Partners—a St. Louis-based hybrid broker/dealer—has successfully recruited two established advisory teams from notable competitors, LPL Financial and Raymond James. This strategic expansion adds substantial pre-transition assets under management (AUM) to its portfolio, signaling a robust growth trajectory under the direction of David Kowach, who previously served as the president and CEO of Wells Fargo Advisors.The Kerrigan Group, led by founder Dan Kerrigan and based in Valdosta, Georgia, brings $250 million in pre-transition AUM, while Forge Point Advisors contributes an impressive $600 million in assets, hailing from Oil City, Pennsylvania. The recruiting of these teams comes as &Partners intensifies efforts to augment its advisor base, which currently includes 90 teams and $38 billion in client assets, showcasing the firm’s ambition to reach 150 teams with a staggering $120 billion AUM by 2028.Climbing the Ranks: &Partners' Competitive AdvantageRecruits like the Kerrigan Group and Forge Point Advisors highlight the appeal of &Partners in attracting seasoned advisors. Their offers of flexibility—characteristics of hybrid broker/dealers that resonate with advisors seeking autonomy—are crucial factors. As the financial advisory market becomes increasingly competitive, firms must present unique value propositions to enlist top talent from traditional brokerage models.Kowach's aggressive recruitment strategy is an extension of previous successes from his tenure at Wells Fargo Advisors. Recently, the firm nabbed Four Corners Wealth and Tuckaway Capital—each boasting substantial AUM—demonstrating Kowach’s ability to leverage his industry connections effectively.The Future of Financial Advisory GroupsThe upward trend in team acquisitions raises compelling questions about the future dynamics of financial advisory firms. As Kowach aims to ramp up recruitment further, surpassing current asset levels and revenue targets, it's essential that prospective partners align with &Partners' ethos. They need to average at least $50 million in AUM for a smooth transition, which not only garners stability but enhances collaborative growth options within the firm.Implications for Financial PlanningThe shifts within &Partners, and the broader advisory landscape spotlight essential trends in financial planning. As firms like &Partners gain competitive edge, they are likely to influence industry standards on compensation, services offered, and the expected client relationship management frameworks.For financial planners and wealth advisers, this represents an evolving market where traditional methodologies might be challenged. The successful integration of new teams into &Partners demonstrates how adapting to advisory clients’ needs and aligning with innovative structures can lead to sustained growth. Meeting the demands of evolving client expectations in wealth management might also shift the service models offered by smaller, independent advisors.Key Takeaways for Advisors in TransitionAs &Partners continues to attract experienced advisors, it become clear that advisors contemplating a transition should evaluate the potential advantages that hybrid structures can offer. They must consider the following:Flexibility and Support: Hybrid broker/dealers often provide paradigms that allow advisors to maintain independence while still getting support and operational backing.Engagement with Clients: The ability to engage deeply with clients remains a pivotal factor in advisory success—better alignment with an advisor team's philosophy and client-centric approach could enhance this.Strategic Growth Opportunities: For advisors joining groups like &Partners, understanding the long-term strategies of the firm, such as partnership models and growth targets, is crucial for individual success.