Creating Value in Private Wealth Management Businesses

About

The Private Wealth Partners enable leading private wealth advisors to operate independent businesses—a superior option for select teams.

We provide a platform to deliver technology, investment solutions, private wealth management expertise and operational support.

We align interests for the benefit of private wealth clients. The result is to create enterprise value. Additionally, we are minority investors in independent private wealth managers. We want to work with private wealth advisors who like being majority owners of their own company. An independent private wealth management team is able to create the client experience they want. They may customize investment solutions, private placement transactions, reporting, pricing, financial planning and more. They establish the culture they want. And, they develop flexible approaches to their own retirement or monetization while creating substantial value.

We have found that private wealth management teams often want a partner to help think about what operating a wealth management company entails. So we offer a formal process.
View Evaluation Process >

As part of The Process a private wealth team will decide if it makes sense for them to operate as an independent business. We approach the question objectively because we are contemplating making a minority investment in the potential new independent firm. We mutually assess if the new company is likely to be a growth business. Our experience and expertise support evaluating whether the business is compelling and investable.

Strategy

Aligning Interests & Building Growth

We do not assume a team should be independent. After preliminary conversations, we mutually decide with each private wealth team if we should jointly spend time evaluating their possibilities. The Process requires the resources of both the private wealth management team and PWP. We cover topics that range from the team’s vision to financial analysis. We believe that private wealth management teams who should form their own company will do so in large part to achieve the client experience they want to deliver. This is the primary means of creating enterprise value. Then, together, we engage in the formal process to determine aligned interests. At the end of that process, the team will discover if it is viable for them to consider operating as an independent private wealth business. And, PWP will conclude if it makes sense for an affiliated fund to take a stake in the team. Our deep industry insight and a focused investment approach provide a strong foundation to evaluate aligned interests and value creation. At the end of the evaluation process we will have a point of view. But a team will have their own perspective, and they will probably be right. If a team does not naturally conclude that they want to form their own company they should not.

Operating

Singularly Dedicated to the Private Wealth Client

What is unique to private wealth is at the heart of it—the complexity, the life concerns and the family dynamics. Operating by exception is not a way to do business. By bringing the right people together for the right reasons, PWP can focus on working with private wealth management teams to apply an operating approach in business strategy execution – inclusive of compliance – unique to the private wealth client experience.

Capabilities

Aligned with PWP, a private wealth company owner will have access to highly supportive and collaborative private wealth strategies and operations: Investment & Intellectual Capital, Knowledge Management & Transition Strategy, Curated Platform, Technology Integration & Front-Mid-Back Office Solutions. We use a carefully selected set of 20+ vendors to provide an integrated middle and back office. This platform is central to our ability to help a private wealth firm create value. We want the technology and the wealth management capabilities to work for our clients and their clients.

Partners

Executive Team

John A. Straus | Managing Partner

Phil Sieg | Partner

Peter E. Ruhlin | Managing Partner

Marten S. Hoekstra | Chairman

Private Wealth Management Teams will find that we offer:

deep expertise in the private wealth industry

broad executive experience

ability to help think through & evaluate their possibilities

a network of industry experts and operating partners

dedication to value creation

a collaborative and operational approach

Contact

Let us know if you would like to talk.

The decision dynamics have changed. This is now possible because of technology advances, product solutions availability and client affinity for private wealth advisor-operated firms. The Private Wealth Partners expertise in private wealth management helps private wealth advisors get to the right answer for their team.

The PWP Evaluation Process

Many private wealth management teams want a partner to help think about what operating a wealth management company of their own entails. So we offer the PWP Evaluation Process. The Process is driven by the team’s aspiration to create a superior client experience – which is how enterprise value can be created. As a natural outcome of The Process, the team will discover if it is viable and a fit for them to operate as a private wealth business. PWP will conclude if it makes sense to take a minority stake in the team.

Through the PWP Evaluation Process, we have found that teams feel confident they are getting a realistic look and clear sense of:

how the client experience they define would be delivered and clear articulation of the culture that underpins it

how the team’s investment offering could be enhanced

the kind of succession the team wants to enable over time

what success looks like for their clients and for enterprise value

how clients may perceive a change

any gaps in the team

the nature and volume of work involved in a transition

How we engage in the process together to determine aligned interests

We start with a preliminary conversation with senior partner(s). We do not assume a team should be independent. The team will ultimately decide if it makes sense for them and we help approach the question objectively and pragmatically. Once we mutually decide to spend time evaluating possibilities, a mutual NDA protecting both parties is signed. Then The Process starts. The private wealth management team will devote time/info and participate, while we manage The Process. Topics covered range from the team’s strategic vision to financial modeling of post-tax valuation/earnings comparisons.

The Process takes the private wealth management team itself approximately 20 hours over 1-2 months elapsed time and varies by team.

At a glance—The PWP Evaluation Process

Defining Needs, Assessing Capabilities & Modeling Outcomes

Evaluation Process

Segments of the PWP Evaluation Process

The seven business segments covered in The Process provide a sense of whether a team operating as an independent company is compelling and likely to be a growth business.

Strategic Development

Key Take-Aways:

What success looks like for clients and for enterprise value. How the team will achieve the client experience they want to deliver as the primary means of creating enterprise value. Reviewing business analytics provided by the team to help evaluate how the team’s business would translate to an independent company. Clearly articulate the culture the team wants underpinning their company.

  • Current Business Profile
  • Target Market
  • Vision & Value Proposition
  • Services Offering
  • Clients & New Client Pipeline
  • Growth & Acquisition Strategy
  • Roles & Responsibilities
  • Succession Planning

Investments & Solutions

Key Take-Aways:

A clear sense of how the investment offering can be enhanced. Any change to capabilities. How much ability and flexibility is possible to meet the most individualized client needs. Degree of creative problem solving possible around family dynamics and intergenerational solutions.

  • Asset Management
  • Private Investments
  • Research Market/Managers
  • Broker-Dealer
  • Custodians
  • Lending
  • Trusts

Client Experience & Reporting

Key Take-Aways:

The kind of client experience it is possible to create. How owning the company could change the dynamic and ultimately the relationship with private wealth clients. Aligning everything to deliver what the private wealth client uniquely needs—addressing their distinctive goals, complexity, life concerns and family dynamics.

  • Client Reporting
  • Financial Planning
  • Client Portals
  • Family Governance Advice, Philanthropy & Other Soft Services

Platform

Key Take-Aways:

How a platform designed for private wealth can allow a team to adapt even more to the client. What is now available to service the business at high quality relative to cost. Effect of dedicated private wealth platform on exception management and what is delivered to clients. How integration of leading providers can be put to work for a team’s own business.

  • Technology
  • Data Management
  • CRM
  • Integration/Single Sign-On
  • Advisor Portal
  • Cyber Security
  • Vendor Due Diligence

Financials & Economics

Key Take-Aways:

Discover what a team’s practice may be worth as a company and the economic impact of owning an independent, private wealth management firm. More detail on specific financial statement components. Post-tax valuation and earnings comparisons.

  • Development of Pro-Forma Financials
  • Financial Metrics, Cash Flows & Enterprise Value
  • Capital Planning
  • Equity/Ownership Structure
  • Accounting/Bookkeeping

Regulatory/Risk Management

Key Take-Aways:

How policies and procedures align for the private wealth client base—including hybrid practices that provide both advisory and transaction services. Compliance offerings available to support an independent company including providing a Chief Compliance Officer. Cyber risk awareness and support.

  • SEC/FINRA
  • Regulatroy Reporting including ADV
  • Policies & Procedures
  • CCO Role & Responsibilities
  • Business Insurance

Transition Planning

Key Take-Aways:

Address the operational challenges, value and nature of work involved in transition. Includes office space, branding, tech implementation and support available to transitioning clients.

  • Pre & Post Transition Planning
  • Roles & Responsibilities in Transition
  • Coordination of PWP, Team Members & Third Parties

Let us know if you would like
to discuss our evaluation process.

Contact Us