Since Rise Growth Partners, the RIA investing company launched earlier this year by former United Capital CEO Joe Duran, invested in Bleakley Financial Group, a hybrid RIA with about $11 billion in client assets, in August, the team has been working to build it into a national firm.
So far, they’ve launched an equity program for Bleakley’s advisors, facilitated two acquisitions, helped hire a new chief growth officer, and improved the firm’s EBITDA. Bleakley is also close to announcing a rebrand with a fresh name and logo.
Even before the deal closed, Duran and his team had a plan for an equity partnership program, including the structure and financial model, the messaging around it and the execution of it.
Advisors who join the partnership transition from 1099 to W-2 employees of the RIA, and they get to choose how much they want in equity versus cash. The amount they receive in equity and cash is based on the advisor’s individual assets, income and revenue. It also includes a retirement program, so they receive an additional payment for the remainder of their free cash flow at retirement.
So far, Bleakley has transitioned 80% of its AUM, or about 75% of the advisors, to the model.
Duran said the transition was quick; it’s typically an 18-month process to convert people from 1099 to W-2.
Bleakley CEO Andy Schwartz and his partners were the first to make the transition. Schwartz said his firm was looking for a partner who could help it reach the next level.
“And then the other thing we were looking for was, we wanted to find a partner that could help us create a situation where everybody could be enriched—all of our stakeholders, not just the four of us,” he said.
Bleakley is also in the process of acquiring two RIA firms, which Schwartz declined to name, with about $1 billion in combined assets.
The RIA recently hired Adam Roosevelt as its first chief growth officer; Rise Growth helped with the job description and vetting. Roosevelt previously spent 15 years at BNY Pershing, where he served as head of RIA business strategy. He’ll be responsible for finding potential acquisitions, but also helping those advisors get acclimated and integrated once they’ve joined.
“It’s a lot of heavy lifting to keep the advisors on track, to give them clarity, to get them the answers they need,” Duran said. “A lot of these folks are just going to be using the platform first and then becoming partners. So you need somebody to help tell the story and help to explain the value that we bring to the table.”
One of the first things Rise Growth did when it partnered with Bleakley was conduct a client survey. That client feedback is now being used to create a new brand for the RIA, to be revealed in the next few weeks. Jennifer Geoghegan, Rise Growth’s chief marketing officer and former CMO of The Colony Group, has been spearheading that initiative.
“We are now working on look-and-feel,” Duran said. “It’s a name that no one will forget—that I do know. And it’s aspirational and strong, which demonstrates the incredible care that this team has for their clients and the relationships they built.”
Rise has also helped Bleakley establish a governance structure and Advisor Council so their advisors could participate in designing the client experience, the platform and investment offerings.
Duran said that since partnering with Bleakley, the RIA’s EBITDA has grown to tens of millions, although he wouldn’t provide specifics. The firm’s revenue is now approaching $100 million, and margins look the way they should for a firm of its size.
Rise Growth has also partnered with Wealthion to launch a YouTube show in which they interview their partner firms. Bleakley has already received several multi-million-dollar leads from the show, and Rise is currently building out a digital lead gen strategy for all its partner firms to use to attract new clients.
