Value Proposition
Heckenberg noted that the financial backing provided by parent company NYPB&T is one of the value propositions offered by the two aggregator entities he leads.
“We’re a bank. There’s no other minority-capital partner in the space that’s an actual bank,” he said, adding that’s important in that it can make the loans directly to younger partners to buy equity in their firm. “It’s a much more streamlined process; they’re not putting the loans on their personal balance sheet by borrowing money [from another entity]” he said. “It’s part of our transaction. We’re helping structure those loans so those next-gen people can buy their equity.”
Besides providing cash, Heckenberg said, NYPB&T also offers services to help wealth management firms grow.
“We’re not just a capital business, we’re an advisory business where we can advise on best practices and technology, and can talk to them about delivering different services and offerings,” he said.
Ultimately, Heckenberg explained, NYPB&T’s backing of both Emigrant Partners and Fiduciary Network is designed to provide long-term capital for the wealth management firms it invests in. He said the company isn’t hung up with formulating exit strategies or generating growth for growth’s sake.
“I don’t think it’s about the number of firms; it’s about making sure we’re invested in the right firms and that they’re growing, which is a good return for them and for us,” he said.