United Capital Adds 23-Member Wealth Management Team

“This is not an exit strategy for anyone” at CIC, Rosener said, noting that several of the principals are relatively young for advisors. They see United Capital as “a final resting place, but in a positive way. We believe in UCC, we want to help them grow.” Rosener’s convinced that United Capital will “continue to be innovative; they’re change makers in our industry. There are other aggregators, but we’re one company, one ADV working to improve our clients’ well-being,” not just financially but in “life management,” the area of clients’ lives where money and clients’ life goals intersect. 

In addition to the four principals joining United Capital as managing directors — Stephen Dreiling, CFP; Rosener, CFP; Chris Johnson, CFP; and Brian McDowell, CFA — 19 other advisors and operational staff have become employees of United Capital. Since joining United Capital, said Rosener, four new employees have been hired: one to “put boots on the ground” in a new office in Tucson, Arizona, and three others who will help expand its Scottsdale, Arizona office. United Capital, the Newport Beach, California-based firm, said the CIC deal brings the total number of offices in its partnership to 59. Each new hire from CIC, United Capital said, is being compensated via cash and/or equity in United Capital.  ‘Every Option’ Was on the Table 

Matt Brinker, senior VP for Partner Development and Acquisitions at United Capital, said in a separate interview that unlike most other RIA firms, CIC “had every option on the table — starting an RIA, getting massive checks from a wirehouse, or joining a partnership.” But Brinker said that Rosener’s comments on the value of the United Capital partnership is “consistent with every partnership we’ve done.” United Capital “brings to bear platform, technology, the infrastructure and operational scale” to the point that “one and one makes three.”

Brinker said “We’re doing north of $100 million in revenue,” and has about $13 billion in AUM, but “especially in light of the landscape shifting — the robo-advisor, the custodians moving more into the retail space, Vanguard’s robo-advisor — every one of our partners has validated that what got them to this point won’t get them to the next.” He argues that United Capital’s ability to “invest in this national RIA from a branding, platform and technology” standpoint is “widening the gap between what a standalone $500 million wealth manager will be able to do on its own.”

Brinker says as well that “it’s not by accident that the average age of our partners is 46; they have 20-year runways, and they’re keenly aware that the playing field is changing.” In addition, “the common theme that we’re hearing” from advisors is “if I had $10 million and not a business to run, this is what I would build. Money and time are their constraints — we’ve built it for them.” 

Obliquely referring to the same innovative culture mentioned by Rosener, Brinker said “our platform is evolving” to help meet the needs of younger clients as well.

Brinker also emphasized the importance of United Capital’s culture. “We’re majority-owned by employees, so our partners maintain an equity interest in the business, get to shape the client experience and influence who and what we do as an organization.” Yes, “our partners are W2 employees of the organization, but if you ask any of them if they feel like their employees, you’ll hear a resounding ‘No!’ We own 100% of the businesses that are within our RIA — one RIA, one ADV — and we now have 400-plus employees throughout the country, 30 people in Newport Beach. We give the keys to run United Capital in a region or location” suited for growth.

But these are RIAs, who are notoriously independent business people. Brinker agrees that independence is “the biggest hurdle for many folks, until they talk to our partners, who confirm this is an environment where they get to collaborate with like-minded advisors, to a common goal—growing United Capital.” 

Rosener believes the advisor industry will “continue to consolidate,” noting in particular that “with our regulatory environment, it’s tough to make the jump from $250 [million in AUM] to $500 to $1 billion. It’s a complex industry that’s unpredictable.”

But being part of a firm that “brings innovation and leverage resources — they have a great deal of investment professionals across the board and across the country. We’ve always thought we’ve had a great bench, with a CPA, but what’s better than having 10 CPAs?” It all comes back, he says, “to benefiting the client.”

— Check out Cambridge’s Continuity Partners Group Welcomes First RIA on ThinkAdvisor.