Billion Dollar Advisor Team Leaves Wells Fargo for Dynasty-Backed RIA

Financial Advisors

Wells Fargo lost another big team to a Dynasty-backed registered investment manager founded last year by a former employee of the firm.

RIA DayMark Wealth Partners of Cincinnati has partnered with Dynasty Financial Partners. announced on wednesday The company said it has hired a team of advisors from Wells Fargo Advisors to manage more than $1 billion in client assets. number two It’s a team I brought in from my previous employer this year.

According to sources, the upcoming team, Compass Group, will be led by managing partner and financial advisors T. Rodney Twells, Andrew Sikolovski and Joseph Schmidt. press release. Kimberly Fitzgerald will join as Senior Director of Client Relations, and Jacqueline Gibbons and Karen Suskowitz will join as Director of Client Relations. Tuells said they will join up on May 5 and the entire team will be based in Pepperpike, Ohio, a Dynasty spokesperson said in an email.

This movement is done as follows growing market For independence support keep drawing Wells in particular has suffered a great loss of talent there. Many of Wells’ experienced advisors are independent from companies such as: LPL and Private Wealth Asset Management Despite having the option to move to FiNet, Wells’ own independent channel, he has not done so in recent months.

“My team and I believe that the client-advisor relationship is sacred,” Twells said in an interview. “We’ve come to believe that wire agency culture in general has moved away from that a bit over time.”

Maintaining “sacred” relationships
Mr. Twells has never moved as an advisor and has spent nearly 26 years at Wells Fargo. He joined Evalen Securities in 1997, which was later acquired by Wells. However, in 2021, his team finally decided to leave. They considered local companies that offered an attractive culture, but felt that being independent would give them better control over their operations in the future, he said.

“We’re only doing this once, so we had to do it right,” he said of their move.

In Spring 2022, the team chose Dynasty as its new platform provider and Fidelity as its administrator, citing Dynasty’s “breadth and depth of available technology.” Compass then sought Dynasty to join his RIA, eventually settling on DayMark.

A Dynasty spokesperson said in an email that the Compass team specializes in working with ultra-high net worth multigenerational families, 401k retirement plans, endowments and organizations, and also “works with select family offices.” said there is.

Twells said Compass will be unregistered with Paasche Kaplan Sterling Investments and operate as a full fiduciary, adding that the brokerage portion of the business was “very small”.

Twells, a chartered financial analyst, said: “We spent some time thinking about the consequences of leaving it alone. But it was also a very good opportunity to move into a fiduciary-only world.” Told. “It was very important to us. We always acted in that capacity in our hearts.”

“Oh, I finally made it”
There have been some recent improvements to our advisor service, Deployment of asset aggregation and client goal tracking tools Sol Jindi, head of Wells Fargo Advisors, the bank’s mobile app Deployed last fall Wall Street megabanks are struggling to stem the decline of veteran advisers with compensation plans that were hoped to win favor among advisers tired of constant adjustments.among them Earnings in the first quarterWells said he would no longer report the number of advisors, but ultimately Increase in net advisors in the fourth quarter.

“We truly believe that Wells is at the bottom of all the big companies,” said Michael Terrana, president and CEO of advisory recruitment firm Terrana Group. In terms of reputation, yes,” he said. Chicagosaid in an interview.

Terrana didn’t advise on the move, but said he has frequently moved advisors from the company’s employee channel, Private Client Group, but the independent channel FiNet has been more successful in retaining talent. He acknowledged it could be better, and said some of PCG’s advisors had moved there. A common complaint among those he moved to was being asked to open a certain number of bank accounts in turn, something some advisers were reluctant to impose on clients. .

“Clients of the people we take out of Wells say to their advisors, ‘Wow, you finally did it. I was wondering when you were going to move. I’m happy with Wells.’ I didn’t, but I wanted to stay in Wells. You.’ And they say it over and over and over again,” Terrana said.

For Twells, it was a similar tone from previous clients.

“I’m busy,” he laughed. “Frankly, the client response has been really, overwhelmingly positive. I did… how can I achieve all of this ‘as quickly as possible?'”

On the bright side for Wells, there have been some successes. Hire a First Republic Advisor During the banking crisis this spring.

“I think any advisor who goes to Wells from any company goes there for the money,” Terrana said.Several other recruiters in the industry also said financial plan They recognized that Wells generally pays the best transition deals in the recruiting market.

Former Wells Ohio Advisor RIA Magnet
Meanwhile, Daymark, whose founder Mike Quinn was Wells’ Ohio regional manager, continues to bring on more former local colleagues from Wirehouse and is doing well.

When Daymark left Wells June of last year, which reportedly manages approximately $1.4 billion in assets. The firm reported in February when it hired a new group of former Wells advisers from Ohio who managed about $450 million. about $2 billion Total AUM. Some of February’s team members are also at Pepperpike, but a Dynasty spokesperson said it had nothing to do with the Compass move.

3 months later Daymark said on the compass press release It said its estimated total assets under management “are rapidly approaching more than $2.5 billion in assets under management with this acquisition.” Dynasty also recently set up its own investment bank to drive inorganic growth through mergers and acquisitions.

The Twells team first made contact with Quinn about four years ago through Quinn’s role overseeing Ohio State.

“We were solid from the beginning,” recalls Twells. Later, when Compass was weighing his options, he reconnected with Quin, who had left to found DayMark. “We were fortunate to be able to link again in this new environment.”

Dynasty believes this move is due in part to Quin’s appeal to his ability to connect with advisers seeking a more customized service for their clients and network veterans.Quinn himself also worked Previously worked at Morgan Stanley and UBS.

“The model Mike Quinn and his team are building clearly resonates with multi-billion dollar breakaway advisors and we look forward to continuing to support their growth.” Dynasty CEO Charles Penney said in an article. release.

Quinn said in an interview that he had already made up his mind to leave Wells when the new team made contact with Daymark.

“By the time we get involved with them, they’re usually reaching out. They’ve done their due diligence and reached out to so many other groups,” he said.

Steven Satter, in-house counsel at DayMark, said: pending litigation Wells Fargo has sued for breach of its employment obligations as a former in-house lawyer. Wells said Sutter conspired with Daymark’s other advisers to steal the business from Wells while he was still employed there.

Quinn declined to comment when asked about the lawsuit and whether Mr. Daymark was concerned that Mr. Wells might take more talent and file additional lawsuits. .

Wells Fargo declined to comment on the move.

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