EXCELSIOR CAPITAL PRESENTS

How the RIA Industry has Evolved

Andy Sathe is a Shareholder at MCF Advisors (a boutique Registered Investment Advisor with offices in Greater Cincinnati, Lexington and Louisville) where he serves as an advisor to business owners and clients who tend to prefer long-term relationships and thoughtful decision-making.

Go Beyond Marketing and Create a Better Customer Experience

Podcast: How the RIA Industry has Evolved

Andy Sathe is a Shareholder at MCF Advisors (a boutique Registered Investment Advisor with offices in Greater Cincinnati, Lexington and Louisville) where he serves as an advisor to business owners and clients who tend to prefer long-term relationships and thoughtful decision-making.

In this episode, Andy shares about the differences between a broker dealer, registered investment advisor (RIA), and trust company, and how each model evolved. Andy stresses that the fundamental question for clients should be what problem do they want to solve, not who they want to work with. The fee structure, business model, and incentives of a particular The RIA industry has seen a tremendous amount of consolidation in the last ten years, with private equity firms buying up firms in the space. This has been good for some, as economies of scale are gained, but it can also create issues, such as the loss of personal touch and succession planning. While the proliferation of RIA’s is great for clients, it can be confusing for advisors who may not be used to working with so many different firms.

Key Highlights

 [00:01 – 06:16] How Registered Investment Advisors Offer Clients More Choices

  • Registered investment advisors (RIAs) offer clients holistic, integrated investment management services
  • The RIA model evolved in the 1980s and 1990s to address the growing demand for personalized service
  • The incentives of a RIA should be the driver of decision making

[06:17 – 18:00] RIAs Advise Clients on the Pros and Cons of Private Equity

  • Why there are people who approach us who are really interested in running their own transaction
  • Why private equity is entering the retirement account space, but clients may not be happy with the experience
  • Private equity owners are looking for ways to save costs and increase profits, which could disrupt funds within the industry
  • Clients should ask their wealth manager about their ownership structure and capitalization, as any question could be on the table during a transaction 

[15:44 – 22:21] Real Estate Sponsors Remain Stable Amidst Uncertainty

  • There has been an increase in 1031 investors, a reduction in retirement account investment, and a decrease in purchase price from early in the year
  • The market is challenging and the value proposition for sponsors is harder to prove
  • The Fed wants rates to increase slower but terminal value will be higher than anticipated earlier

[22:22 – 31:51] Alternative Investments: A Guide to Keeping Clients Safe in a Volatile Market

  • There is a lot of volatility in the stock and bond markets, which is keeping many people up at night
  • There is a general feeling of angst among investors in the current market conditions, with many questioning why this downturn is happening and how long it will last
  • All we can do is reinforce the plan that has contemplate situations like this

[31:52 – 34:38] How to Profit from Market Volatility

  • There is a lot of change happening in the wealth management industry, with millennials becoming more involved in holistic planning
  • There is a shift from baby boomer to millennial planning, with robo advisors becoming more prevalent
  • There are opportunities for businesses to come in and automate parts of their planning process, bringing peace of mind to clients

 [34:39 – 36:55] Closing Segment

 

Additional Links:

Brian’s Linkedin: https://www.linkedin.com/in/brian-c-adams/

Previous Articles

the-ultimate-guide-to-commercial-real-estate-investing

The Ultimate Guide to Commercial Real Estate Investing

Learn everything you need to know to assess the benefits of a commercial real estate investment and make the best decisions to get started.

Q1-2023-commercial-real-estate-investment-update

Q1 2023 Commercial Real Estate Investment Update

The commercial real estate industry has seen significant shifts and challenges over the past year, and the first quarter of 2023 was no exception.

Understanding the Waterfall Structure in Real Estate Private Equity Investments

Understanding the Waterfall Structure in Real Estate Private Equity Investments

Learn about this distribution framework used in real estate private equity investments. Understand the components of a waterfall structure…

how-much-money-do-I-need-to-start-investing-in-commercial-real-estate

How Much Money Do I Need to Start Investing in Commercial Real Estate?

We frequently have conversations where people tell us, “I want to start investing in commercial real estate, but I’m not sure if I have the capital.”

benefits-of-owning-commercial-property-over-residential

Benefits of Owning Commercial Property over Residential

While both types of real estate investments have their benefits, investing in CRE can be more advantageous for several reasons.

The Revolution That Wasn’t

How has technology impacted modern finance and created an asymmetrical relationship between Wall Street and individual investors? In this episode, we speak with Spencer Jakab, the author of The Revolution That Wasn’t and editor of the Wall Street Journal’s Heard on the Street column.

Tax Savings Secrets: How Cost Segregation Analysis Can Save You Money

How can cost segregation analysis help real estate investors maximize their returns? In this episode, John Hanning explores the potential benefits of cost recovery studies and depreciation.

What is a Family Owner’s Manual and Do I Need One?

It’s time to make sure you and your family are set up to continue success for generations to come. Today, Josh Kanter shares his journey transitioning from practice as a transactional attorney to reorganizing his family’s activities under a single-family office.

Key Characteristics of High-Performing Family Offices

Are family offices becoming more popular? In this episode, Robert Daugherty dives into the importance of having a functional family office, and the role of the Chief Learning Officer in it.

Excelsior Capital

A real estate private equity firm that owns and operates high quality multi-tenant office assets in emerging secondary markets.

Interested in learning more about Excelsior's investment opportunities?

Excelsior Capital

104 Woodmont Blvd, Suite 120
Nashville, TN 37205

investors@excelsiorgp.com

w

Livechat

Disclaimer: Under no circumstances should any information presented on this website be construed as an offer to sell, or solicitation of an offer to purchase any securities or other investments. This website does not contain the information that an investor should consider or evaluate to make a potential investment. Other materials related to investments in entities managed by Excelsior Capital are not available to the general public.