Apr 16, 2020

InvestmentNews Article: Thank Goodness We Diversified

The perfect fit that is private equity.

In my bi-monthly columns for InvestmentNews I’ve often written about the benefits of diversifying the structure of your firm. But that may not be what you think it is. I’m not merely speaking about adding advisors or locations or even services such as estate or tax planning (which I highly recommend you do).

I’m talking about following the advice we give our clients and not putting most of your investment eggs in the basket that is your firm.
Now, you can’t grow unless you invest back in the company. And you can’t invest back in your company unless you take risk.
Or can you?

If you told me 10 years ago that I’d be partnering with private equity to create a top 50 RIA, I wouldn’t have believed you. But that’s what happened, and it’s made our firm, not just a little bigger and better, but taken it places that would have taken my business partner and me many, many years to achieve on our own.

The funny thing is, as happy as we were with the decision to partner with P.E., it wasn’t until COVID-19 that I realized just how perfect a decision it was.

From the article:

In certain circles, people hear “private equity” and pause. But not only is it a great cultural fit that finances our expansion and strengthens our infrastructure, because, ostensibly, our partnership is with investors, and because they have faith in what we do, they generally allow us to run the firm the way we always have. And that allows virtually everyone involved to benefit from the flexible M&As we’ve done the past two years.

“Flexible” means our partnerships run the gamut from principals who want to retire (but protect clients and staff), to principals who just want to be advisors (and not run offices or manage staff), to principals like my business partner and myself, who want to be part of something nationwide that helps as many people as possible live rich and meaningful lives.

Scott Hanson, Co-Founder, Allworth Financial

Read the full article at InvestmentNews.com