Moving from a wirehouse to be a pure RIA is a difficult and daunting proposition, with only an estimated 500-1,000 reps taking the plunge. Research shows that spousal support is important. But Focus Financial, an RIA roll-up firm with $55 billion under management, has decided to include tuck-ins of advisors with $100-$200 million under management to supplement their giant RIA acquisition strategy. That strategy added $14 billion in 2012.
Focus is hiring five people to help wirehouse advisors make the move, in what they call an “advisor-in-residence” program. The program can last as long as a year before an advisor is “placed” in one of Focus’ larger firms. But will reps be interested in leaving the brand, support, security and, with some firms, sales opportunities for retirement plans — only to be tucked into another firm? Stay tuned.
