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Industry Spotlight > Broker Dealers

Redtail CEO Joins Riskalyze Board

By Jeff Berman By Janet Levaux

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Riskalyze has named Redtail Technology CEO and co-founder Brian McLaughlin to its board of directors, leading to speculation about what the move means for Riskalyze’s future.

The news comes about two weeks after Orion Advisors Services said it was merging with Brinker Capital.

Meanwhile, Riskalyze directors Andy Swan and Ryan Shanks wrapped up their time on the fintech firm’s board after serving since 2014; they remain advisors to the company.

Riskalyze’s Risk Alignment Platform includes tools for analyzing investment risk and investors’ risk preferences, while Redtail makes cloud-based client relationship management software used by 40,000 financial advisory firms.

“We think about board members two years at a time,” Riskalyze CEO Aaron Klein said on Twitter. “Six years is an incredibly long time, and Andy and Ryan are both heroes for giving us that. No discussions, plans or even thoughts of a merger. Just a great entrepreneur in @redtailtech joining the board of another company!”

(Swan is a co-founder of LikeFolio, which uses social media intelligence to develop insights into stock market trends and consumer behavior. Shanks is the co-founder and CEO of advisor recruiting firm FA Match.)

Tim Welsh, head of Nexus Strategy, said the move is not likely a precursor to a merger or acquisition.

“An M&A has to have scale today, and that means taking out a competitor,” he said in an interview with ThinkAdvisor. “They don’t compete directly and are complementary.”

Plus, Klein and McLaughlin “are neighbors in Sacramento,” Welsh explained, adding that if Riskalyze wanted to buy Redtail “they would have just done it” and not appointed McLaughlin to its board. 

The move gives Riskalyze the opportunity to learn from the CEO of Redtail, which has more than 100,000 users in the broker-dealer space, says Welsh. 

Riskalyze Chairwoman Lori Hardwick, for one, seem to agree. “Brian brings a wealth of knowledge and deep industry expertise, and his unique insights will be particularly valuable,” she said in a statement. “Transitions such as these allow for an opportunity to bring new perspectives to the table, so that we can continue to serve the financial services industry in a powerful way.”

In addition to Klein, Hardwick and McLaughlin, the Riskalyze board now includes Michael McDaniel, co-founder and chief investment officer of Riskalyze, and Abhay Puskoor, principal at FTV Capital.

“As a long standing company partner, I’ve watched Riskalyze climb quickly to the top of the financial services market,” McLaughlin said in a statement. He intends to “help advise Aaron and his leadership team and contribute my experience and expertise in financial technology.”

— Related on ThinkAdvisor:

Jeff Berman

Janet Levaux

@Think_JanetL

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