The increasing shortage of financial advisors is well known in our industry. Last year, McKinsey predicted a shortage of approximately 100,000 advisors by 2034. This shortfall is magnified by the increasing demand for advisors, while the rookie advisor failure rate is around 72%, according to a 2024 Cerulli report.
El Segundo, California-based independent financial services firm Sagient implemented a program to address this issue by providing new advisors, or “emerging advisors,” with access to experienced colleagues who have demonstrated success, whom the firm refers to as “development leaders.”
The Emerging Advisor Development Leader Partnership Program (EADL) matches development leaders with emerging advisors, assisting in client engagements, demonstrating the advisory process, developing client opportunities in the field and delivering behind-the-scenes guidance (including meeting preparation and debriefing).
It is designed to go beyond coaching and education, allowing experienced advisors to address with the emerging advisors the hurdles they faced themselves as novices.
We spoke with Sagient’s CEO, as well as a current development leader and a current emerging advisor, to learn about the program’s structure, purpose, founding and results.
Sagient CEO Paul Karlitz said, “The EADL was created to fast-track the development of emerging advisors by providing them with valuable real-world client experience. By partnering with seasoned professionals, new advisors gain firsthand exposure to client conversations, recommendations and outcomes.”
Paul Kaye, an Investment Advisor Representative and Financial Planner currently serving as a development leader, said, “As rewarding as this career is over time, the first several years can be extremely difficult. New advisors suddenly find themselves doing the jobs of five different people at the same time.”
He added, “They are responsible for building a book of business, learning about the world of finance, networking to make connections, marketing their services and often managing their own administrative and back-office requirements. It’s a lot for a new person to take in, and most people wash out and quit.”
The EADL is designed as a mutually beneficial, structured mentorship. Sagient matches each development leader with an emerging advisor by evaluating fit across factors including cultural assessment, market niche, geographical location and other criteria.
“We believe this model can redefine advisor development by dramatically shortening the path to success and driving retention and long-term productivity well beyond the industry’s historical norms.” – Paul Karlitz, CEO, Sagient
Karlitz added, “We believe this model can redefine advisor development by dramatically shortening the path to success and driving retention and long-term productivity well beyond the industry’s historical norms. Ultimately, our EADL Program allows us to develop the next generation of elite advisors while maintaining the exceptional client experience Sagient is known for.”
Addressing the EADL from the emerging advisor’s viewpoint, John Dellaporta, an emerging advisor in the program, said, “My Development Leader starts off every meeting we have with financial literacy and education and teaches me to work as a true fiduciary.”
Speaking to the results he sees, Dellaporta added, “When I believe in my own work, my clients will believe in me and be more likely to follow my guidance. Thanks to the confidence the Sagient program is instilling in me, I am building greater trust with my clients. That is compelling me to want to teach and help others on their financial journeys. This is how I will grow my practice and succeed in this business.”
Sagient comprises 85 professionals supporting approximately $2 billion in client assets.
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