Focus Financial Partners, LLC, a holding company of independent wealth
management firms, has recently hired former Charles Schwab
Institutional executive Richard Gill to spearhead efforts to expand its
portfolio of affiliates.
As vice president
at New York-based Focus, Gill's mandate is to help brokers transition
to the independent, fiduciary advisor model in hopes that they will
eventually partner with Focus. The company has 12 affiliate firms with
$22 billion in assets under management, and it invests in individuals
or firms with at least $300 million AUM.
Gill says Focus
seeks brokers who already conduct their business like independent RIAs. "We're interested
in corner-office brokers who act like fiduciaries and are treating
their business like an RIA acting in the best interests of their
clients," he says. "We see them as a pool of potential wealth advisors."
Focus generally
acquires 40% to 60% of a firm's cash flow in exchange for cash and an
ownership position in the holding company. Acquired firms receive
backoffice, compliance and tech support to help their businesses grow.
In addition,
acquired entitities hope to profit through earn-outs based on their
growth rate as a Focus affiliate. And, given Focus' stated goal to go
public, there's the possibility of cashing in from an eventual IPO if
and when that occurs. "With our success it might be sooner than we
planned," says Gill.
Focus is funded by Summit Partners, a Boston-based private equity and venture capital firm.
At Schwab
Institutional, Gill helped launch new services for Schwab's 5,000 RIA
clients, including the commission partnership between Schwab
Institutional and Cambridge that provides services to advisors turning
independent. He also advised Schwab Institutional's senior executives
on potential acquisition targets and coordinated due diligence efforts.
Before joining Schwab, Gill did financial analysis and due diligence on
technology leveraged buyouts at Silver Lake Partners.