Continua após a publicidade..
Continua após a publicidade..
Continua após a publicidade..

Cambridge Launches New RIA Acquisition Model

Continua após a publicidade..

Cambridge Investment Research, the Fairfield, Iowa-based independent broker/dealer, has launched a new registered investment advisory aimed at smaller, fee-only advisors looking for flexible acquisition options.

BridgePort Financial Solutions will be a standalone entity from Cambridge’s corporate RIA and broker/dealer, and it will take minority, majority or full ownership stakes in the advisor businesses that join the platform.  

Continua após a publicidade..

The firm has hired Eddie Rollins, who led distribution efforts at Horizon Investments for the last 14 years, as managing director of BridgePort. He will lead the direction, planning, growth and development of the new RIA and its services. He will also join Cambridge’s executive council.

BridgePort has completed three transactions so far, totaling $1 billion in assets under advisement, two of which were 100% purchases, with one minority acquisition, said Jeff Vivacqua, Cambridge president of growth and development.

Continua após a publicidade..

The RIA will use Fidelity, Schwab, Pershing and SEI for custody, and Orion Advisor Solutions will provide the entire technology stack.

Cambridge has an affiliation model for fee-only advisors under its corporate RIA, with about 100 currently in that model. And while Cambridge has historically been focused on serving advisors who are heavily fee-based, Vivacqua said the firm noticed a gap in the acquisition marketplace for smaller, fee-only RIAs with between $50 million to $250 million in AUM.

“A lot of RIA firms were just looking at $1 billion-size AUM firms and up and looking to make 100% acquisitions,” he said. “That’s a model, and that model may work for somebody. In true Cambridge fashion, we approached the conversation with a little more flexibility. In that vein, we know there’s financial professionals who may want to look at continuity and succession differently than 100%.”

Some firms may be interested in doing multiple tranches that lead from minority to majority to 100% ownership over time. Cambridge hopes to “bridge” that gap, offering flexible ownership options for this segment of smaller advisors, hence the “BridgePort” name.

BridgePort Managing Director Eddie Rollins Cambridge RIA acquisition model

BridgePort Managing Director Eddie Rollins

Advisors who sell 100% of their equity become employees of BridgePort, and take on the RIA’s branding, whereas those who sell minority or majority stakes retain independent contractor status and their own branding.

In exchange, advisors who join the platform get access to the tech stack, as well as “soft services” that Cambridge provides, such as practice management and business consulting, lending services and outsourced services like websites and marketing.

“We see a business model here; in the fee-only registered investment advisor marketplace, there could be firms that are looking for flexible continuity and succession offerings, an advisory tech stack and soft services,” Vivacqua said. “And if they can keep it custodied right where they’re at—in some of the big custodial firms—this is probably something we think we can bring to market.”

He said the firm is seeing interest in the new RIA platform from advisors within the Cambridge ecosystem, as well as those outside, but, “The strategy is not to cannibalize Cambridge.”

To be sure, Cambridge is not the first IBD to get into the RIA M&A market. LPL launched a ‘liquidity and succession’ program a couple years ago, where it will buy 100% of an advisor’s practice from a principal or principals who are generally expected to remain for about three years.

In 2022, Osaic entered the RIA M&A market for the first time, making a minority investment in Signature Estate & Investment Advisors, a Los Angeles–based hybrid RIA, alongside Reverence Capital Partners, the b/d network’s majority owner. The move was part of a larger strategy to make investments in growing RIAs in the coming years.

Last year, Cetera Holdings, the holding company of Cetera Financial Group, acquired its first pure RIA, The Retirement Planning Group. That move came less than a month after the company hired former Fidelity Investments senior executive Mike Durbin as its CEO, signaling an intention to move more seriously into the space.

Commonwealth recently expanded its Entrepreneurial Capital program, where it will take up to 40% of a firm’s earnings in exchange for capital. The firm is also considering taking majority stakes in Commonwealth advisor firms, although that’s not an offering yet.

Source link

Romulo is a renowned American entrepreneur who resides in the United States, recognized for his entrepreneurial vision and inspirational leadership. Born into a humble family, Romulo demonstrated an uncommon determination and a natural talent for business from an early age. After completing his studies in business administration, Romulo ventured to the United States, where he immersed himself in the business world, founding his first company at the age of 25. His bold vision and ability to identify market opportunities quickly led him to success on American Throughout his career, Romulo has played key roles in various industries, from technology to finance, always striving to innovate and create value for his clients and investors. His customer-centric approach and dedication to operational excellence have made his companies industry benchmarks, contributing to his recognition both in the United States and interna In addition to his business achievements, Romulo is known for his commitment to corporate social responsibility. He is a passionate advocate for education and community development, dedicating time and resources to support initiatives that promote equal access to education and gr Currently, Romulo leads a diversified conglomerate with a global presence and a significant impact in the markets where he operates. His long-term vision and ability to adapt to the nuances of the American market make him a respected and admired leader among his peers and competitors in the Unit Outside the office, Romulo is an avid reader and nature lover. He believes in the importance of finding a balance between work and personal life, constantly seeking new ways to challenge himself and grow, both profession With a career marked by extraordinary achievements and an unwavering commitment to sustainable success, Romulo continues to be a prominent figure in the international business landscape and a source of in

Related Articles


Please enter your comment!
Please enter your name here

fifteen − fourteen =

- Advertisement -spot_img

Latest Articles