Page 28 - Investment Advisor October 2022

Cover Story

it made an investment in Grant Tani Barash & “There is a real synergy
Altman, a business management firm based in between Highland and
Beverly Hills, California, that provides high-net-
worth and ultra-high-net-worth clients with bill Hightower, culturally and
payment, tax preparation and other concierge- philosophically. Highland
style financial management capabilities.
As of June 30, Hightower’s assets under manage- recognizes that the world is
ment were $108.4 billion, while assets under adminis- changing. They are forward-
tration were about $132.6 billion, it said, noting it now has
131 advisory businesses in 34 states and the District of Columbia. thinking in the way they’ve
Hightower didn’t specify how much of a stake it took in evolved their offering to meet their
Highland or provide financial terms of the transaction. “What we
can say is that the transaction involved cash and equity,” Bob Oros, clients’ total life needs.”
Hightower CEO and chairman, explained. “In all of Hightower’s —Bob Oros
transactions, the principals maintain an economic interest in, as

5 Ways Financial Advice Is Changing Now
What does a day in the life of an advisor look like in today’s security and help with regulatory compliance matters.
world? The events of the last two years have completely This is fueling a hub-and-spoke model with national brands
transformed how advisors think, engage and work. pushing information and products down to smaller players.
Future-focused advisors have an oppor- Advisory firm leaders will need to be uber-focused on sim-
tunity to position themselves as plicity and discipline when it comes to unifying tech stacks
multi-generational partners with and operational processes, and eliminating outdated, complex
the ability to deliver holistic, systems and methods of doing business.
goal-based financial advice for
the present and the future. 2. Technology to Optimize Client Experience
However, the advisor of the As advisory firms join forces and integrate core components
future will need to deftly navi- of their tech infrastructure and tools, they have an opportu-
gate an environment filled with nity to drive end-to-end improvements that will ultimately
M&A, changing technology, talent improve the entire client experience.
wars and an ever-increasing focus on A strategic approach to planning and implementing tech-
diversity, equity, inclusion and relationship building. nology changes can help drive more thoughtful decision-mak-
How can advisors set themselves up for success? ing about what can be automated, what has to be custom-
Here are five trends reshaping the industry of financial ized, and what can be scaled out depending on client needs
advice, and how advisory firm leaders can stay a step ahead and assets under management.
to leverage industry transformation for growth opportunities: This is no easy task, and one that will require strong
leadership, deep expertise (both in-house and through
1. Growth-Fueled Consolidation strategic partnerships) and a multi-year execution plan.
Advisory firms have seen tremendous growth over the past However, with the right approach, advisors can ultimately
few years, and as a result, have taken opportunities to assess spend less time figuring out technology and more time
new opportunities like mergers or acquisitions. focusing on business.
Numerous firms and consultancies, including DeVoe &
Co., Echelon Partners and others, report that last year was a 3. Clear Differentiation
record year for M&A in the advisor space in terms of both the The rise of the fiduciary advice model has leveled the play-
number of transactions and the volume of client assets. ing field for many firms. While this is a positive for investors
Barring any stunning economic shock, this should continue seeking long-term partnerships with a credible advisory firm,
in 2022, meaning additional smaller boutique firms will be it is pushing advisory firms to work harder than ever to stand
rolled into bigger ones looking to achieve scale, bolster cyber- out in a crowded marketplace.

26 INVESTMENT ADVISOR OCTOBER 2022 | ThinkAdvisor.com