An RIA Partnership with over $500 million in AUM was growing rapidly, but their operations structure was struggling to keep up with that growth.
The core team left an IBD to form this RIA practice, then they brought on a handful of new advisors. The team was expanding fast so they needed more structure and tools.
Distraction: The senior team was spending too much time on operations, particularly trading.
Hiring: They attempted to hire operations employees to help shoulder the load, but they had a difficult time finding experienced candidates to handle the level of responsibility in the mid-size market they operate in.
Sales: By devoting so much time on operational issues, the firm was misusing their most talented producers. The opportunity cost of missed sales-based activities was significant.
Compliance: Due to their focus being pulled elsewhere, the partners of the firm were overlooking other important aspects of their firm’s wellbeing, particularly compliance.
Model Implementation: GeoWealth is able to take over the trading and rebalancing of all of the RIA’s model portfolios.
Billing & Reporting: Additionally, GeoWealth operates as an extension of the firm’s back office by taking a hands-on approach to running billing and quarterly performance reporting for them.
Compliance Help: During onboarding, GeoWealth helps identify a compliance gap at the firm and makes an introduction to a compliance consultant who ultimately solves it.
This firm was able to move on from constantly addressing operational issues and seeking new hires. The best producers of the firm are now solely devoted to developing new client relationships, which optimizes their value and accelerates the overall growth of the firm.
The firm ultimately saves money by outsourcing trading, billing, and reporting to GeoWealth. This means they don’t need to attract, hire, and retain 2 or 3 internal employees to handle these tasks.
Another added benefit? The firm missed a potentially damaging compliance landmine due to GeoWealth’s consultative approach and our ability to engage partner entities on the RIA’s behalf.
This case study is provided for illustrative purposes only and is meant to provide an example of GeoWealth’s process and methodology. There can be no assurance that GeoWealth will be able to achieve similar results in comparable situations. No portion of this case study is to be interpreted as a testimonial or endorsement of GeoWealth’s investment advisory services.
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