March 26, 2025
By Jeff Nash, Founder & CEO, BridgeMark Strategies
When it comes to recruiting, do wealth management firms have a “type?” My experience tells me they do. Having a full recruiting pipeline is great, but unless potential affiliates are a good cultural and business fit, the numbers more likely represent more of a headache than an opportunity. Financial advisors enter the fray with an idea of the type of firm they want to join – and there are many business models from which to choose. Wealth management firms also come to the table with their own expectations of who is well suited to their culture and who will enjoy success in their business model. While few relationships are compatible on every level, there needs to be a solid foundation of alignment. Fitting a square peg into a round hole is often an accommodation by both parties trying to “make it work” – a short-sighted solution that may bump recruiting numbers, but ultimately becomes a problem that starts small but inevitably grows until it has to be dealt with, creating undue pain for both parties.
According to recent Cerulli data, 71% of advisors surveyed said they would choose an independent channel if they were going to switch firms. Between wirehouse advisors testing the independent waters and already independent advisors unwilling to go along for the ride when their firm sells, there are plenty of advisors and advisor teams in motion. Indeed, in 2025, Cerulli predicted that close to 9% of advisors – and the $3.1 trillion in assets they oversee – would change firms. And, as they say, there’s something for everyone. Part of the ongoing vibrancy of the independent wealth management industry can be attributed to the diversity of options available to advisors seeking a partner that best serves their goals and the needs of clients.
This doesn’t mean each option is well-suited for everyone. Financial advisors are not a monolith. As in any industry, the individuals who comprise the workforce are the product of their lived experiences, hard-won skills, value systems and ultimate goals. These, in turn, forge personal and professional expectations which, in today’s hyper-competitive recruiting landscape, drive transition choices.
In addition, investor expectations help drive advisor choices. Today’s wealth management clients are more focused on holistic support from their financial advisors, whether it’s simple access to advisory support, brokerage services, insurance products or a more sophisticated suite of family office-like services. “Today’s clients are demanding more choice, flexibility and customization from their advisors,” said Craig Gould, CEO of publicly traded Binah Capital Group, Inc., which supports independent advisors through its affiliated broker-dealers.
Paul Karlitz, CEO of Sagient, an El Segundo, California independent wealth management and financial services firm affiliated with MassMutual, agrees that expanding client needs helps drive financial advisor choices. “Clients are inundated with information and options to reach their goals, and they need someone to bring together a clear picture of their financial future. The one-subject advisor model, whether in insurance or asset management, leaves clients without a coordinated strategy and can force them to figure out which professional is providing them with the right advice.”
On the other side of the coin are advisor expectations. Financial advisors will always gravitate toward firms that understand where they are coming from and what they want to achieve. According to Kosta Tanglis, Founder/Managing Partner at Genesis Wealth, which focuses much of its recruiting efforts on bank-based advisors, “Many (bank-based advisors) are highly entrepreneurial but operate within systems that limit how they serve clients. Product restrictions, compensation structures and institutional bureaucracy often prevent talented advisors from fully realizing their potential. For many of these advisors, the barrier to independence isn’t desire — it’s execution risk. Our role is to remove that risk so advisors can focus on serving clients and building scalable businesses they truly own.”
The influx of private equity and institutional investors has transformed the independent landscape. Whether this is a good thing or a bad thing depends upon your perspective. For some advisors, being beholden to outside shareholders, their interests and their timelines evokes feelings of their wirehouse days. Firms that have intentionally (and proudly) steered clear of outside investors can be appealing to the entrepreneurial bent of independent advisors. And, with technology driving cost-effective operational and service efficiencies, differences in the support capabilities of boutique firms and their counterparts with well-heeled financial backers are de minimis.
David Fischer, Co-Founder of Independent Financial Group, (IFG) one of the largest internally held independent broker-dealer in the industry, is on the front lines of his firm’s recruiting efforts and says, “Being privately held is a huge advantage for us when talking with financial advisors looking to make a move. (It) allows us to always act in our advisors’ best interests, because we’re not taking orders from Wall Street, a large corporate parent or a private equity firm. With no proprietary product or outside agenda to push, we can be authentically independent.”
While the independent wealth management industry is enjoying robust growth across all models, the Hybrid RIA segment is enjoying outsized expansion. “According to Cerulli Associates, the Hybrid RIA was the fastest-growing channel over the past decade, expanding by nearly 13%,” added Mr. Gould. “While Hybrid RIAs have traditionally been seen as nothing more than a convenient way station on the road to independence, the best firms have come into their own as true partners supporting the organic growth needs of advisors, covering the entire wealth management spectrum, providing brokerage-built products, alternative investments and risk solutions that should be considered when crafting a complete financial plan.”
Culture and capabilities remain paramount.
Large, small. Publicly traded, PE-backed. Privately held, part of a larger enterprise. Each model has pros and cons as determined by the advisors conducting their due diligence. No matter the firm, one element transcends business model, product platform, tech stack and leadership structure: culture. And culture is a very subjective thing.
Culture matters, but it won’t compensate for sub-standard capabilities. And, like culture, once you move beyond table stakes solutions, advisors will look for additional support they need to serve their clients, grow their business and differentiate themselves in an increasingly competitive marketplace. Firms with both robust pipelines and strong retention rates are the firms that excel at this sometimes difficult parley and arrive at a place where expectations for all parties align.
IFG, says Mr. Fischer, is “large enough to provide all the support and resources advisors need, but intimate enough to provide a personalized service experience. Advisors are part of a community where we know them and their businesses, and they don’t get routed to faceless call centers. With us, advisors know they are not just another rep code, and that is appealing to those looking for a new home.”
For advisors at Genesis Wealth, Mr. Tanglis says, the firm’s supported independence model is a differentiator: “Advisors gain the freedom, expanded planning capabilities and improved economics that come with independence without suddenly having to operate every aspect of a standalone business. Through our relationship with LPL Financial and our internal infrastructure, we provide compliance, technology, staffing support and a structured transition process designed to protect client relationships.”
Mr. Gould believes that “firms like Binah Capital, with scale and a multi-brand, multi-custodial and multi-clearing approach, (deliver) optimal support across distinct business models serving a diverse client base. Hybrids can be responsive to the specific needs of financial advisors and clients who expect and deserve unfettered access to tools, resources and technologies to achieve their long-term growth goals.”
A comprehensive product platform is a real differentiator for Mr. Karlitz who believes, “Insurance provides the foundation for a secure financial plan, making an insurance company’s ecosystem an ideal platform for financial advisors. As part of the larger company, advisors have access to tools designed to mitigate risk, which in turn enables them to help clients develop an appropriate investment portfolio, knowing they have guardrails in place.”
Times change. Values always matter.
If you say “change is good”… you won’t hear any arguments from recruiters. Change is their bread and butter – and their opportunity to shine a spotlight on their firms’ value proposition and showcase their bonafides.
How firms identify and capture advisors who’ll thrive within their business model is both an art and a science. How financial advisors home in on their ideal firm comes down to what I call “Feel, Fit, FinancialsTM,” – a critical assessment centered on the concept of value: do the firm’s values align with yours, do the technologies and solutions add value to your business and does the firm value you as a professional.
