2024 marked a year of profound transformation and opportunity. Against the backdrop of another high stakes presidential election, wealth managers had to navigate a wave of mergers and acquisitions thanks to the well-funded efforts of private equity firms to consolidate a traditionally fragmented industry. As a result, firms have had to adapt, whether to adopt new technology platforms or expand their client and talent base by reaching out to women and people of color.
To compile the list, we considered timeliness, the reputation of firms and professionals featured in the stories, audience engagement and the strength of insight and analysis. We also did not repeat any articles from our July roundup.
WSR presents the top 10 stories of 2024 in chronological order. We greatly appreciate your continued readership, engagement and support. Best wishes for a prosperous 2025!
1. Those Unsustainable RIA Multiples Are Actually Sustainable
In April, Dan Kreuter, the Founder and CEO of the Gladstone Group, penned an essay for WSR that refuted the notion that the market for RIAs had become too frothy. Successful RIAs with strong growth, attractive clients and healthy profits will naturally receive “tremendous, life-changing money.”
But recent demand for RIAs has been driven by private equity firms. Armed with loads of cash, private equity firms have traditionally targeted businesses with predictable revenue streams and good margins operating in industries with no dominant players. Buying RIAs offers private equity players the chance to scale up growable businesses and weed out inefficiencies in a fragmented industry.
2. Megadeal: KKR Acquired Janney Montgomery Scott
In July, private equity giant KKR said it would acquire Janney Montgomery Scott, which, at the time, had over $150 billion in assets under management and 900 advisors across the United States. Janney previously belonged to Penn Mutual.
“Janney’s well-respected brand, client-centric culture and strong track record of growth have established it as a best-in-class business that we believe is well-positioned to benefit from the significant tailwinds driving demand in the U.S. wealth management market,” Chris Harrington, a partner at KKR, said in a statement.
3. ‘Size Does Matter’: For Advisors, Small Can Be Better
In August, Paige Swartzendruber, the Chief Business Development Officer of Berthel Fisher subsidiaries, wrote an op-ed that argued that advisors should consider working at smaller firms.
Advisors require a culture that promotes phone calls over e-mails, the ability to fill service requests within hours, not days and product specialists who can knowledgably explore platform options upon request.
As larger firms increasingly seek scale, they are unlikely to provide those things, she argued. “You’re one among many competing for the attention of limited human resources at the home office.” Said Swartzendruber. “In such an environment, the likelihood of receiving the personalized service you deserve diminishes as the enterprise expands.”
4. WSR Pathfinder Awards – Top Hispanic Industry Leaders Of 2024
In August, WSR’s Pathfinder Awards concluded its third year by honoring outstanding achievement in wealth management among Hispanic professionals, who comprise of communities and groups that are underrepresented in the industry. The Pathfinder Awards honor outstanding achievement in wealth management among communities and groups that are underrepresented in the industry, and include Top Black Industry Leaders in February, Top Women Industry Leaders in March and Top AAPI Industry Leaders in May.
The Pathfinders also provide a platform for the industry to hear from underrepresented groups, and for the 2024 Top Hispanic Industry Leaders, Erika Wilson, Chief Marketing Officer of Sound Income Group; Michael G. Perez, Managing Director, Consulting – Family Office Practice at F2 Strategy; Diana Cabrices, CEO of Diana Cabrices Consulting; and Jeff Concepcion, the Founder and CEO of Stratos Wealth Holdings, addressed the industry.
5. Investments Roundup: Calendar Reset Leveraged ETFs
In October, WSR chatted with Matt Markiewicz, Head of Product and Capital Markets at Tradr ETFs, who was Investment Solutions Leader of the Month in our monthly Investments Roundup. Markiewicz described how Calendar Reset Leveraged ETFs work, and the benefits of their reset and leverage characteristics.
Tradr ETFs had just launched eight such leveraged ETFs on the Nasdaq, which reset their performance target on a calendar week or month instead of the end of the day, as reported in our September Investments Roundup. Such ETFs allow investors to capture more of the longer-term performance of the underlying assets instead of being exposed to the volatility of a single day, Markiewicz said.
While October was the highest in reader engagement, our Investments Roundups always draw the attention of many readers, as do our monthly Wealthtech Roundups and weekly Deals & Recruiting Roundups.
6. Pandering 2024
During the Money Management Institute Annual Conference in October, Jeff Bush, Principal of The Washington Update, offered his take on the U.S. presidential election, including how a Donald Trump victory or Kamala Harris triumph would impact the industry.
Should Harris, the Democratic nominee, prevail and the Democrats take control of Congress, we should have expected more “paternalistic” regulations and industrial economic policy along the lines of the Inflation Reduction Act.
Should Trump, the Republican standard bearer, succeed and the GOP obtained Congressional majorities (which turned out to be the result), we should anticipate tax cuts, deregulation and increased production of fossil fuels.
However, the promises both campaigns made to voters amounted to mere “pandering” and were unlikely to become law, Bush said. Even extending the tax cuts Trump enacted while President in 2017, a top priority for the GOP, is not a given because some fiscally conservative Republicans are likely to oppose its high price tag.
7. Winning Over Female Clients
Advisors still have a long way to go to build trust with female clients. So WSR spoke with a group of female professionals in the field to learn how best to reach this demographic in October.
Adrianna Stasiuk, Partner & Investment Advisor, Aaron Wealth Advisors, said education, empathy and vulnerability are the most important factors in building trust with women.
“Women typically come to the table with less confidence and practice using the ‘language’ of money and finance,” Stasiuk said, “so approaching the engagement in the role of teacher or coach can be especially helpful for the client to truly understand and grasp the building blocks.”
Casey Jorgensen, Head of Dynasty Institute of Adaptive Leadership, Dynasty Financial Partners, said advisors often suffer from the misconception that women are not as interested in financial matters as men.
“Advisors often overlook a critically important possibility: It may not be psychologically (and at worst, physically), safe for a woman to express interest in financial matters in her current relationship,” Jorgensen said. “Every woman’s financial decisions are deeply connected to her life goals like family planning, education, health care and living situation.”
8. Industry Veteran Pete Hess Named PureFacts President
In late October, PureFacts Financial Solutions announced the appointment of industry veteran Pete Hess as President.
Rob Madej, the firm’s Founder and CEO, previously held the position of President, which was “carved off as a standalone, which Pete Hess will now hold,” a PureFacts spokesperson told WSR. As President, Hess reports to Madej and work to leverage PureFacts’ position as a revenue management solution for global wealth and asset management firms, the company said.
Hess most recently served as Chief Revenue Officer (CRO), Americas, at InvestCloud and, earlier in his career, was CEO of Advent Software. Hess took on day-today leadership of PureFacts operations, with Madej focusing his time on engaging with key clients, partners and prospects.
9. Deals & Recruiting Roundup Covers MAI, Avitas, LPL, Hightower, Vanguard And More
The weekly Deals & Recruiting Roundup published Dec. 17 had the highest audience engagement for the second half of 2024 among Deals & Recruiting Roundups. In it, our CEO, Larry Roth, who gives his take on the industry in every roundup, said that demand for advisor succession planning and retirement services is driving the M&A market. Roth said that firms that wish to recruit and retain advisors should think about ways to help them to manage their money once they retire.
The transactions covered included MAI Capital Management acquiring Carmichael Hill & Associates, Avitas Wealth Management merging with Lido Advisors, Hightower investing in Dechtman Wealth Management, Homrich Berg acquiring WMS Partners, LPL Financial recruiting Prestige Wealth Group and Snowden Lane creating a new retirement program for advisors, among others.
While the Dec. 17 edition gained the highest numbers, the weekly Deals & Recruiting Roundup consistently engages our readers with a succinct, fact-dense roundup of the weeks’ top news across M&A, advisor recruiting, strategic partnerships, bank and wirehouse activity, and promotions and people moves.
10. WSR Announces IS 5: Top Investment Solutions Platform Leaders
For the second year, WSR’s editorial team searched the industry for the top executives demonstrating excellence as investment solutions platform leaders. This year’s winners, announced in December, excelled in dedication to their field, broad influence and recognition in the industry and beyond, and an exemplary track record as a leader and executive.
The winners were: Mary Ann Bartels, Chief Investment Strategist, Sanctuary Wealth; Peter Essele, Head Of Advisory Solutions, Commonwealth Financial Network; Gene Goldman, Chief Investment Officer, Cetera Financial Group; Jeff Krumpelman, Chief Investment Strategist and Head Of Equities, Mariner Wealth Advisors; and Brian Nick, Managing Director, Head Of Portfolio Strategy, NewEdge Wealth.
The IS 5 is one of many recognition lists that WSR produces throughout the year. Other lists in the latter half of 2024 included the PRO 5: Top Wealth Management Professional Services Firms, the M&A 5: Top Wealth Management M&A Professionals, the CAP 5: Top Private Equity And Capital Growth Partners, the IMAGE 10: Top Wealth Management Storytellers, the DS 5: Top Wealth Management Distribution Strategists and the COO 5: Top Wealth Management COOs.
Janeesa Hollingshead, Contributing Editor at Wealth Solutions Report, can be reached at editor@wealthsolutionsreport.com.
