The Wealth Management EDGE conference brought together a panel of registered investment advisor (RIA) leaders to share their strategies for organic growth. These industry experts revealed their success in building dedicated prospecting teams and niche marketing outreach, offering valuable insights for advisors seeking to boost their business. Gary Roth, co-CEO of Modern Wealth, highlighted a concerning trend: most individual RIAs are not growing, emphasizing the need for innovative approaches. Roth and Kay Lynn Mayhue, President of Merit Financial Advisor, advocate for a centralized client prospecting team and process, reducing the burden on advisors to secure new business. By establishing organic growth hubs and concierges, they streamline the client acquisition process, resulting in significant growth for Modern Wealth, which now manages over $13 billion in assets under management.
Mayhue, from Merit, emphasizes the importance of institutionalizing organic growth, freeing advisors from the pressure of finding prospects. Merit has built a robust business development team, including regional vice presidents, to handle prospect meetings and information gathering, allowing advisors to focus on client relationships. This strategy has contributed to Merit's success, with approximately $25 billion in client assets.
James Bogart, CEO of Bogart Wealth, achieved growth through targeted marketing and niche expertise. By focusing on a specific vertical, Bogart's firm has become a subject matter expert, attracting both clients and prospects. This approach has led to a dedicated business development team, mirroring the strategies of Modern Wealth and Merit.
The article also discusses inorganic growth opportunities, particularly the impact of advisor retirements on M&A and consolidation. Cerulli Associates predicts a significant number of advisors will retire over the next decade, driving mergers and acquisitions. Mayhue mentions an unexpected bump in M&A due to the Commonwealth Financial Network advisors' movement after the LPL Financial acquisition. She attributes this to the presence of young, entrepreneurial-minded leaders and second-generation advisors, making them an attractive acquisition target for Merit.
In conclusion, the RIA leaders' strategies for organic growth involve building dedicated prospecting teams, niche marketing, and institutionalizing business development processes. These approaches have proven successful, allowing firms to grow, attract new advisors, and streamline client acquisition. The industry's focus on organic growth is a response to the challenge of inorganic growth, particularly the impact of advisor retirements, and it highlights the importance of innovation and strategic planning in the wealth management sector.
