YouSaid · the spoken record

Shirl Penney

lines on the record: 72
first: 2021-04-01
most recent: 2021-04-01
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Work for you as early as possible in your life. And I love getting that message out to young investors just to get them started and being disciplined. We all have a lot of priorities, but if we can say, look, 5% early on of our check, without exception, regardless of what seems to be a big priority in our life, we're going to pay ourselves first and start investing it, get a simple financial plan in place. You look back to your question 25 years later, you'll be very glad that you did it.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, well, that's a good one because, again, I'm 44 now, so you subtract off 25. That was a 19-year-old kid. But look, what I like to tell a lot of young people, and certainly would tell my 19-year-old self, is to have the discipline to pay yourself first from an investment perspective. And as we all know, it's not always about getting right, whatever that means. The asset allocation, because that'll change over time or security selection, et cetera. It's about actually being disciplined to save. And whether you're saving 5% early on, and even if that number appears, I hear a lot of people saying I can only save $50 a month. Well, that's great. That's a wonderful place to start. Save the $50, start to invest it, and let the miracle of compound interest start to...”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Great mentor finding an organization, finding a team that cares about your development, will push you, will let you fail, will let you learn from those mistakes. If you can find that environment and you're going to get paid $5,000 to $10,000 less than an environment that you're not going to have that, take the lower pay. It's all about what you learn, the tuition.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, Barry, I love that question. First and foremost, I would say do it. We need you, the financial health and wellness of our country is not where it should be, whether it's on a national or state level, whether it's the fact that over 70% of Americans can't put their hand on $1,000 in an emergency, given my background and how I grew up, financial literacy is something that's near and dear to me. It's fundamentally changed the life that I've been able to live. So we need more people to come into the industry. Please do it. It's critical to our country. In terms of specific advice to someone starting out, it's not about what you earn. It's about what you learn in the first, let's call it, three years. So finding a”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's a book that got introduced to me through the Aspen Institute. And again, it's early. You ask what I'm reading right now, but I love the concept of group mentoring.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I get people reaching out to me all over the world. I mean, it's pretty special saying, hey, I just read your chapter of how I invest my money. And I love how you said the family capital or I have a fund bucket, which for me is houses and my horses. We have a horse racing stable. And people from all walks of life have reached out. So it's been great, and I'm glad that Josh invited me to be a part of it. The other book I'll mention, which I just started to read, I'm a big proponent. I talked about mentorship, both being a mentor and being mentored by a committee of people. I've just started reading in professional development in yourself and your team a book called Tribe of Mentors, which was written by a guy named Tim Ferris.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I do too. When he sent it to me, the first thing I said to him is this is brilliant and I'm shocked that no one else has thought about it. I said, did you do your research? Has anyone else done this? And he said, I'm telling you they haven't.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“We are. We all kidding aside, we are, and we're kindred spirits, and he's the best. So he invited me. Isn't that a great idea for?”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I just read, and this is going to be a shameless plug for someone who's a friend of both of us. I actually just had the opportunity to finish reading Josh Brown's book on how I invest my money. Josh and I have been personal friends for quite some time and what you know you have remarkable talent and partner there who thinks the world of you.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Multi-generational financial obviously describes the industry and partners in terms of how we work with our clients and our resource partners and relate to each other internally. So if you were to look at the dynasty logo, you will see some similarities to the vitamin water logo and that's because when you have a brand building genius who's helping you early on, you want to listen. So I would say Mike was a great mentor to me early on in starting dive.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Like Time Bar and Pirates Booty, which he didn't found. And then he went on to found now body armor. Very few entrepreneurs have ever founded a billion-dollar brand from the ground up. Even fewer number have done it more than once. And body armor certainly a multi-billion dollar brand at this point, as was vitamin water. So early on when I was looking to launch this business, Mike was a remarkable sounding board. He and I actually named Dynasty together, which we thought about it. We're both sports guys. So we thought about it meaning winning consistently over time.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“In terms of my most early mentor, without questions, my stepgrandfather, who raised me, his name was Clarence Townsend. Both of my daughters are named after him. My older daughter, her name is Townsend, and our younger one is Anne Clare. The Claire is from Clarence. As they say, we're named after one of our angels. He taught me the importance of doing what you say, integrity, being honest. He never borrowed a dollar in his life. So discipline around not spending more than you can afford. A lot of that obviously was very helpful to me, as I said, when I was starting a business and remembering a lot of those life lessons that I'd learned from him. On the entrepreneur side, one of my best friends is a guy named Mike Ripoli. Your listeners will probably know the name. Mike was one of the founders of vitamin Water. He helped build other brands.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Of his shows around leadership and overcoming adversity. I've really enjoyed those. I am a fellow at the Aspen Institute in their finance fellowship program. I really like the Aspen ideas to go podcast. There are some quick hits on various interesting ideas, leadership, entrepreneurship, et cetera. And TED talks from time to time are things that I'll take in when I'm taking a long walk here in St. Pete. But I'm more of a podcast person, honestly, than somebody who is watching Netflix or Amazon Prime.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so in terms of the little bit of time I have away from work as far as shows and podcasts, Barry, I've never been one to watch a lot of television, to be honest with you. I do watch sports from time to time and follow my favorite teams. But I do listen to podcasts. I'll give you a nice compliment and plug, master's in business is definitely one of my favorite podcasts. I do listen to Jocko Willett's podcast. My wife and I are big. Jocko obviously is a former Navy Skill, but”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Various growth strategies on brand development, on staffing. So our community, I think, is a very powerful differentiator because I think you're defined not just by who you service, but also who you don't. And for dynasty, thinking about our clients, we're not trying to be something to everyone. We're trying to be everything to someone. And that's the someone that really plays the high end of the market that wants a partner, is focused on building a great business, not just a great practice, really wants to drive enterprise value and wants to have a sustained business over time. That's our core focus client.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Become an REA custodian, how do they attract more advisor assets? How do they build TAMP capabilities? So a lot of, if you think about, we're in 20 different businesses and we just integrate it into a platform. A lot of our individual businesses may have competition, but we're still the only fully integrated offering at the high end of the model. And the last thing I think that I would mention that I haven't mentioned yet, that's a competitive advantage, is our community. And I would say, look, winners want to surround themselves with other winners. There really isn't a community where the average CEO and principal is a billion dollar plus RAA. They're geographically dispersed all over the country. They don't really compete with each other where they can get together several times a year at our events and share peer-to-peer on what's working, best practices, what isn't working.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Have come in and out of the platform business. But as I mentioned earlier, I tell entrepreneurs, you've got to be laser focused. It's very difficult to do one thing incredibly well. It's impossible to do several things well. So if you want to be a roll-up and an acquire a businesses, do that. Don't try to be a platform service company as well, right? Especially if you only have sub 100 billion. I mean, there are players out there with half a trillion that can't do it that are trying to build different types of models and they're still subscale. So for us, we've been laser focused on just supporting advisors, being a platform company, and staying in that swim lane. And there's really no one else that's doing that. Inertia, advisor is not leaving, big competitor. You mentioned LPL. There's a lot of independent broker dealers that are trying to figure out how they reinvent themselves as an advisory firm.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Fun for me to be a mentor to, frankly, a lot of these players coming into space, these are firms being started by people that are still older than me, even though I'm seen as one of the original visionaries in the space. I'm still only 44, so it's nice for me to be able to mentor so many people coming in. I don't see anyone today as a scaled integrated platform competitor to the high-end REA. We invented that, we created that space $60 billion, as I said, $100 billion here in the near term. We're not complacent, only to paranoids survive. So we're constantly watching what others are doing. But in the space where we sit today, I think we sit alone. Now, you mentioned firms, some of these roll-ups.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Sure. Look, you know this. It's lonely at the top sometimes. And the result is the space tends to be pretty small. So I know the CEOs of most all of these firms in the space. And we get together from time to time and we share a laugh, whether it's about a certain reporter or where the industry is going. The reality is the people at the tops of the organization, you know, from a peer-to-peer practice management perspective, spend some time together. In particular, Barry, I have a lot of respect for the other entrepreneurs that have gone out there and bet on themselves and trying to execute a new model. In terms of competition, there's a lot. I'm only 44 years old. I was 32 when I decided to start the business. I'm going to be doing this for a while. And it's a lot of...”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is coming faster on the cost side than it is on the revenue side. And that's where scale matters. That's where these large multi-billion dollar independent firms have higher profitability because they're able to spread the cost infrastructure over more clients. That's why outsourcing to firms like Dynasty is accelerating because you can get synthetic scale. And then the last part of the competitive advantage is marketing and dollars that you're able to spend on sales, whether it's adding a new client or adding a new advisor, the larger and more scale you have, the more free cash flow you have to make those investments. And that's why the biggest firms, the ones that you tend to see growing the fastest right now.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“The ROA on average on our platform for that $5 million client was around 78 basis points. Today it's 7475. So you've had three or four basis points of erosion in terms of margin pressure. But the big change is the cost to service. Ten years ago, the client expectation might have been very simplistic financial plan, and it's really an asset management relationship. Today, it's more holistic wealth management. It's integrated financial planning. It's looking at the liability side of the balance sheet alongside of the asset side. It's looking at overall risk management, its incorporation of alternative investments alongside of traditional, et cetera, et cetera. So the team investment, the technology investment, what it costs to service that client has gone up. So the margin pressure actually...”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, look, I do think that there will be brands that evolve on the national level, regional level, within the RAA space that will have real brand value in Dynasty hopes to be, again, that Intel sticker powering a number of those national scaled winners and helping to provide a lot of the scale and access that supports them. But the reality is when you look at the economics of a wealth management business, A lot of people talk about the margin and margin pressure that's happened in the industry. But when you look at the last 10 years, that has occurred, but in a different way than what most people describe it. And what I mean by that is we looked at the average end client on our platform is, let's say, about $5 million. The average client that's being advised by one of the advisors 10 years ago.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And the entrepreneurship. I mean, one of our biggest advantages is we are entrepreneurs servicing other entrepreneurs. So we're getting up every day and thinking about innovation and how do we make the advisors' life better and the whole ecosystem that's evolved over the last 10 years. It's driven by entrepreneurs who have great access to technology and capital that are fundamentally changing the way that wealth management is being delivered in this country. And I think, frankly, it's just going to continue to accelerate.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“That you can only incrementally move the needle with. But when we launch an REA, we're building from scratch custom technology to specifically fit the need of the way they want to service their client. That's a huge advantage for them. On the product side, whether it's partners now like iCapital and the access to alternatives that really started in the independent space or halo on the structure product front or what investnet has done to bring scale into the TAMP and reporting and financial planning space. So many of those firms started on the independent side. And now you have wirehouses and banks trying to leverage that technology that started here, right? So the space has kind of turned upside down. And then you pour on top of it the gas on the fire, which is tremendous capital investment.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, look, the reality is the whole independence base, the independent movement at this point, it's been discovered. And you see it if you're an RAA, you decide to sell. There's 20 potential buyers that show up on the other side. I mean, it's just a wonderful business. It's annuitized. It's essential to our country. It's not going away. So all roads are starting to lead towards the RIA space. And what that means is the capital investment that's coming in, the attention that's being paid is you're seeing tremendous innovation across the board. So yes, in technology, in reporting technology, in OCFO technology, in OCIO technology, in scaled compliance technology, basically all aspects of an advisory practice. And when you're in the independence... And you don't have to worry about having 50 years of legacy technology.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“It will be a slow migration and probably more about product distribution to RAs than it will be turnkey custody for most of those platforms”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Employee and they're helping to cross sell the relationship across the organization. And it would become more difficult in that environment for an advisor to make a move. So I think that's really the strategy that you're seeing be deployed. Longer term, perhaps you could see some of these firms open up product access, maybe even eventually custody to independent advisors. But that business is such a scale business and you have firms like Schwab that have north of $3 trillion already, clearly a big lead. Fidelity well north of a trillion. Purging is a scaled player in that space. It's very difficult to have an employee model supporting advisors and an independent model supporting advisors when you're subscale in the latter. So I think”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So you cross sell them with multiple products and then you put them into models that the firm is running, not the advisor. And then it becomes a deterrent for the advisors to leave because a lot of their clients, you see it at firms like Goldman and others where you have typically a lower percentage of client assets that follow when the advisor leaves because the client tends to have more of a relationship with the brand as opposed to some of the firms where it's just the relationship with the advisor. I think the wirehouses are strategically trying to do more of that, whether it's tying them in with loan products, structured products, things that are proprietary to the firm. It's about driving the brand and creating stickiness. And I think ultimately, you know, over the next five years or so, you'll see the warehouses looking and feeling more like a private bank where the advisor is more of a clear.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“More directly to the client. You see this at Merrill with Merrill Edge. You see a lot of the smaller account solutions being rolled out at these firms, which is the institutionalizing of the client relationship. So the client has more of a relationship with the brand as opposed to the advisor.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“The reality is if an advisor goes independent, they would make a lot more money both in terms of income. They could decide when they want to retire, if they sell their business as long-term capital gains tax, and a higher valuation. But many advisors just take the easier path, which is to say, I'll stay here. It's a three-month earnout. It's all W2 income, but it's easier. So wirehouses, again, understand the inertia and complacency is on their side. So they're putting those programs in place. I think what they're also doing smartly and advisors are allowing it to happen is to”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, look, our biggest competitor, frankly, is inertia and complacency. And as you know, in lots of walks of life, good is the enemy of great. And a lot of the advisors, you know, they've worked hard to build their book of business and they don't want to go through the knothole of a transition, which is 90 days of work to then get on the other side and have their business. So for us, typically, a loss would be that we spent six months educating somebody and they just made the decision not to move. It's rare that we would dig in with somebody and they would move and not do it with us in the RAA space because most of the advisors want a supported independent model. They don't want to have to hire all the people and they don't want to juggle 65 different vendor balls. So they decide to partner with us. What the wirehouses are trying to do is to put these retiring place programs in place, which takes advantage of inertia.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Management and coaching support of Mariner, and then dynasty's turnkey platform supports that. We're getting hundreds of referrals on our website a month. A lot of these advisors are 50, 75, 100 million. Many of them don't want to sell. So we have now a channel partnership with Mariner where the advisor can go get the benefit of our platform, get the benefit of the support of Mariner, and not have to sell their business today. So you'll see us selectively enter into those types of partnerships, maybe support some of the larger independent broker dealers, standing up for private wealth division. So selectively onboarding some of these institutional clients. And you add all that together. I'll stick my neck out here a little bit. Barry here on the show to say I'd like to see us in Side of 24 months crossover the $100 billion”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“In thinking about adding a dozen or so new brands that are powered by dynasty, whether they were already independent firms that are looking to outsource to us, or they're coming from captivity or an employee model and looking to own and operate their own firm, our flows are very strong in that regard. So those would be the primary drivers. And I think selectively, you know, you'll see a few firms. An example of that would be Mariner, which is a $35 billion RIA run by Marty Bicknell, who I think is a great CEO in the RAA space, decided he wanted to have a platform affiliate model where advisors that didn't want to sell the Mariner could get all the benefits of the investment, acumen, and practice.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Helping our advisors grow organically. Second part of our growth will come inorganically, meaning helping our advisors grow via M&A, whether it's retiring RAA principals that are looking to monetize their business, whether it's breakaway advisors who want all the benefits of independence but maybe don't want to run their own business and they want to join an independent firm that will continue to become an even larger part of our business and our growth because of our 50 firms. I would say more than half of them now are M&A ready. And we've invested heavily in investment banking team in-house. We've reserved a lot of our capital and balance sheet to help finance those transactions. So I think a lot of that, as I said, will accelerate. And then obviously the third is new store sales.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Organic growth, helping our advisors get new clients. And maybe you've seen in the past multiple months over the past year, we've started to sponsor, in particular a lot of local trying to support some of the local athletes in golf and IndyCar racing and tennis to help get the brand awareness out there more. We have a lot more of that activity to come. That has led to referrals. that we can make out to our advisors. And I think about us really becoming over the next five years in part the good housekeeper seal of approval for independent bikes. So if you're looking for an independent advisor, look for one that's powered by dynasty, right? Because here's all the buying power and support and technology that they have. And I think dynasty can become a much bigger part.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“More time to stick their head up and look around and explore and realizing that they don't need to give up 50% of their revenue. Advisors that we support give up 15%, one-five, not five-zero. And if they want to have a small office, they can, but the average advisor on our platform is doing mid-60s, the high 60s in terms of gross income, which is almost 50% more from an income standpoint on what they were receiving at a wirehouse. And the path to independence has become more well worn at this point. They want to look peer-to-peer and have those conversations. Success breeds more success. So what we're finding very in light of this environment, it's only accelerating the movement towards independence.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“With the human element. I think we'll end in a place where it's one plus one equaling three. To the question about advisors breaking away without question. Our business is spring-loaded right now. We're going to have just a fantastic 2021, in large part because the breakaway advisor movement is accelerating. A lot of advisors historically in wirehouses have thought that a big part of what they give up for the 50% of the revenue that they give to the wirehouse, a big part of that value is real estate, which they're now not getting. And they've now realized that they don't need that real estate as part of the servicing infrastructure to their client. They also have more free time because they're not in the office. They can explore independence or explore a move and get educated. So the combination of those things have”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“That we've seen is around hiring new people, training the onboarding is challenging in this environment. I mean, we have some employees that have gone six months that are new team members that haven't had the chance to meet the broader team members. Culture, which is so important within a business, is very difficult to drive, I find, remotely. Efficiency sometimes, I mean, there's no substitute to walking around the corner and tapping a colleague on the shoulder and saying, hey, how do I do this? Or what do you think here? Now it's an email or a Zoom call and maybe the person's not immediately available. So some of those things are a little bit more challenging, but I think they'll get worked out as businesses get back into maybe a hybrid or what I call sometimes the styborging of the business, which is leveraging technology with the”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, great question. So I would say to the first piece, we support advisors, and I think what our advisors learn is that being proximate and over-communicating and proactive, I mean, this was over the past year, Barry, it's been the advisor Super Bowl. And those that have done those things are growing fast. I mean, it's one of the rare times when literally everyone wants to talk to a financial advisor. And those that took advantage of that opportunity, we have just seen remarkable organic growth of the firms that we support. In terms of our business and the home office that's supporting the advisors, I mean, similarly, you know, the importance of overcommunication, being proximate with our clients has been critical. Some of the challenges”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Been one of the top asset gatherers in the employee channel, and we've been the top asset gatherer on the independent side. And both of those firms are located and headquartered in St. Petersburg. So that to me really highlights where we are now as an industry with technology, availability of talent, product access. You can really build a large, successful business in finance anywhere in the country. And I would say the last plug for St. Pete, to your earlier point, I think over the next 10 years, one of the hottest cities, fastest growing where you're going to see remarkable economic development in technology, finance, and other key industries is right here in St. Pete. So I would encourage any business owner that is looking at this part of the country to look at St. Pete because there's some pretty remarkable things happening here.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“We looked at some of those locations, and you're right, it is charming. We found that the Delta, in terms of some of the cost savings, could be a little bit higher here. But really what cinched it for us is every time I came here, Barry, it felt like I was getting a community bear hug. Everyone from the mayor, Rick Kreisman, and the economic development team that was here to multiple CEOs to the owners of the sports teams that are here, everyone really wanted to partner with us. And, you know, Raymond James is here, and I'm friendly with Paul Riley, who runs Raymond James. They were very supportive, even though we're in finance. We're not obviously directly in their space, which is primarily an employee wealth management business. But the last couple years, what's interesting, Raymond James has...”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“To walk to work. I mean, St. Pete, most walkable city in America. It has great culture here, entertainment, arts, the pro sports team. They seem to win everything in the last couple of years. I'll take a little credit because that wasn't the case when we first moved here, but it has happened since.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“To put them in a position to win disproportionately when things are more challenging are the ones that win more disproportionately over the long term. So for us, things were great. This was several years ago. We obviously ended up being a bit lucky in terms of being here when the pandemic hit. But the result is, you know, for us being here very 70% cheaper real estate, personnel costs are 20% cheaper, which allows us to take those savings, build a more profitable business, also make more investments in technology and in people to service our clients. The infrastructure that's here is fantastic in terms of the ability to get anywhere with the St. Pete Airport, the Stanford Airport, the quality of life. We found a lot of our employees were tired of commuting an hour and a half and having the ability”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we officially moved to St. Petersburg two years ago, but we started the journey on deciding if we were going to move and looking at various cities about three years ago. So we spent a full year. I personally made very 35 trips to various cities, primarily up and down the East Coast, because it was, and Mary Ann, my wife went with me, other senior executives, because when you're asking, and we have a very diverse leadership team, by financial service standards, when you're asking people to make a move out of Manhattan and to dislocate their family, you want to make sure that you have extreme conviction that it's the right thing for the business and the right thing for the team. So you can imagine we took that and took that very, very serious. And ultimately for us, we're middle office, back office company. The closer you are to the end.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Decide to outsource that to invest in that and dynasty because we already have that integrated platform. We understand and have the DNA around how to develop a private wealth division. So I think you'll see some of that work coming into the market, which is great for us because it's groups of advisors and billions of assets at a time coming on our platform. It'll be good for those firms to create a division that an advisor can graduate into as opposed to off of their firm and it will be great for InvestNet because the 80-20 rule, the top 20% of the advisors at the IBDs have the bulk of the assets and create the revenue, which then obviously flows back to InvestNet as a technology and asset management partner to those independent broker dealers as well. So it was really those two reasons why they made the investment. We had to bill Creger to the board, remarkable perspective that he brings.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and that was a big part barrier why they did the investment. The other piece, real quick, is because a lot of the, in this gets into our enterprise group, which is servicing institutional clients, a lot of the larger independent broker dealers that invest in that is servicing. One of the biggest challenges they're facing is their largest advisors are starting to graduate off of their platform and go fully independent. And a little bit of back to the future here, what I did 15 years ago helping to build the private wealth division at Smith Barney for that same reason, the top advisors were looking to leave, we had to build a client segmentation strategy, a dedicated firm within a firm for the elite advisors covering the firm's top clients. That's what a private wealth division is. You're going to start to see these high-end private client or private wealth divisions popping up at the independent broker dealer. And some of those, I believe, will”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Legacy RAA because the custodians are really good in the back office but don't really do the work in the middle office have had to hire up. When you can get synthetic scale and outsource to a firm like Dynasty, you don't have to hire as many people. And yes, with the vendors and the resource partners, with 60 billion, we get them a little bit cheaper. But the real delta comes from personnel savings and then not having to manage those people, which frees up more time. And if you assume a multiple of seven or eight times and sometimes higher in terms of valuation times 500 basis points, you can extrapolate that out to say the firms on our platform are almost a third more valuable because of the enhanced earnings that we're able to help drive. That was a very big target.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and it's great and it's a fast growing element of our business because a lot of advisors are looking to outsource the non-core things. I mean, the biggest difference, Barry, if we were to look at a billion, our average RAA is about a billion too. If you were to look at a billion two advisor, let's say that we launched as a breakaway versus the average billion two RIA that's already independent coming to us to outsource on average, which I find fascinating, the advisors that we broke away and stood up on average over 500 basis points more profitable. And they tend to grow faster. The biggest reason for that when you really peel back the numbers and do the analysis is because on average the billion two firm that we set up has three less people.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Marketing, they can outsource aspects of their investments to us. Again, all designed to create scale and efficiency in the business. The other thing that...”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Adventure. It's run by Ed Swenson, who's the president of that entity. He's also the chief operating officer of dynasty, where we're bringing value add business services to RAAs that are current clients of investnet. So helping them run more efficient businesses, more tech-enabled businesses, helping them outsource things that are not core strategic to their firm, helping them manage their expenses to build more profitable P&Ls, which ultimately result in more valuable businesses, et cetera. And we're off, you know, we launched that about six months ago. We're off to a great start. We built a whole technology interface around data. So the advisors can use the data around their business to make better decisions on how they want to run their business, to do business planning. They can leverage our capital programs, compliance.”
2021-04-01 · Masters in Business · Shirl Penney on Building a $100 Billion RIA Platform (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source