A group of women at a business meeting

Case Study

Jen, Independent Broker Dealer, $40M AUM

 

Jen is an advisor in the local office of a large Broker Dealer. She has $40M in client assets. Jen uses a mix of direct mutual funds, BD model portfolios, and her own research to create solutions for her clients. Jen is unhappy with her current business model and feels that if she had the right structure in place, she could take control of her life, take better care of existing clients, and grow her business.

Problems with her business model

  • Payouts are low to start with, and the process is a constant struggle with management.

  • She has no home office admin support. Voice mail is full and Jen always feels behind.

  • Jen doesn’t have time or resources to build her business.

Problems with client servicing

  • Constant business turnover at the BD, which frustrates her clients as they are inundated with paperwork.

  • Inability to differentiate to HNW prospects and clients.

  • High internal costs for client portfolios.

  • Existing client servicing is always behind and Jen feels in danger of losing clients.

Her Options

Start her own RIA, and use Invariant as an insourced CIO

Break away to a friendlier BD, and use Invariant to help manage the process

Join Invariant directly

as an advisor

Business Meeting

The Solution

After thinking about it, Jen decided that she wanted to control her destiny and launch her own RIA, but she was afraid she would end up with even less support than she had in her current situation.

 

Invariant did a deep dive on Jen’s book of business and her plans to expand her client base. They identified her goals, values, and investment philosophy, and had several conversations about how to best align these with her new business venture.

 

Invariant mapped its portfolio solutions to her current clients, and came up with a game plan for handling taxable accounts. They prepared to handle all cash management needs: from ACH inflows/outflows, Roth conversions, tax optimization strategies, and more. Custom solutions were created for her bigger clients, some of whom had concentrated stock positions with a low basis.

 

They also put her in touch with good, low-priced attorneys to handle legal, and provided her with much of the legal paperwork she would need. IA agreements, P&P manual, and best practices for handling routine compliance tasks were crafted for her new business.  

The Outcome

Running her own RIA with Invariant’s iCIO partnership, client all-in fees have come down, Jen is making more money, and she can sleep well at night knowing she has a sophisticated team watching her back. Now on to the fun part: looking to bring this differentiated, best-in-class team, to new and bigger clients.

Clients’ All-in Fees Have
Gone Down Significantly
She’s Keeping More of
What She Earns
Her Administrative Problems
Have Been Solved
She Spends More Time on
Building Her Business