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HomeLife Insurance‘Partnered Independence’ Key to Sanctuary Wealth’s Rising Success

‘Partnered Independence’ Key to Sanctuary Wealth’s Rising Success


Sharp strategizing and capitalizing on apt alternatives are keys to the rising success of Sanctuary Wealth’s ecosystem of “partnered independence,” as founder and CEO Jim Dickson describes in an interview with ThinkAdvisor.

Nearly all of the aggregator’s 82 unbiased monetary advisory practices had been beforehand high-performing wirehouse groups.

Now Sanctuary is zeroing in on practices which might be already unbiased.

“We’re having an increasing number of unbiased practices coming to us day by day saying, ‘We don’t wish to do all this [administrative] stuff. Can we be part of your platform?’

“[Increasingly],” he continues, “it’s about our purchasing minority stakes in already-independent companies and taking up lots of the [things] they don’t wish to do with the intention to assist them develop sooner.”

When Sanctuary invests in any follow utilizing its platform, it takes a 20%-30% stake.

Shopping for a whole follow is “not a core a part of our technique,” Dickson stresses.

However “a extremely huge focus of our technique … and an vital focus of our future … is having an increasing number of practices through which we’ve got a stake,” says Dickson, who, earlier than going unbiased himself, ran Merrill Lynch’s midwestern division — comprising 1000’s of advisors — for 10 of the 20 years he was with the wirehouse.

Within the interview, Dickson, 50, describes his agency’s progress from the time he left Merrill to kind Sanctuary to serve advisors who felt restricted and constrained as big-firm workers.

Sanctuary, launched in December 2018, has raised $225 million within the final two years from two sources: Italian asset supervisor Azimut Group, which purchased a 55% majority stake for $50 million, and personal credit score supervisor Kennedy Lewis Funding Administration, from which Sanctuary raised $175 million.

The corporate now has $27 billion in consumer belongings managed by 82 companion companies — that’s greater than 300 advisors — in 28 states.

About 40%-45% of the practices have moved from Merrill, says Dickson, whose agency is a 2022 ThinkAdvisor LUMINARIES award finalist within the class of govt management.

Sanctuary supplies advisors with the providers of plenty of its totally owned subsidiaries, together with an RIA, a BD, asset administration, insurance coverage options, a world division and a household workplace.

The Indianapolis-headquartered firm has a rising Latin American division, primarily based in Miami, for advisors conducting worldwide enterprise.

A midtown Manhattan workplace is ready to open this month forward of Sanctuary’s deliberate enlargement into the Northeast.

ThinkAdvisor not too long ago interviewed Dickson, who was talking by cellphone from Indianapolis.

The persistent uncertainty of the economic system and markets has in actual fact benefited Sanctuary.

“Since this volatility and bear market began, we’ve seen a surge in demand as a result of lots of companies are saying, ‘I don’t wish to do all this administrative, operational and compliance stuff. I wish to spend time with my shoppers.’”

Listed below are excerpts from our interview:

THINKADVISOR: You launched your personal agency in 2018 after 20 years with Merrill Lynch. Please describe your online business mannequin.

JIM DICKSON: We’re an aggregator. We assist very high-performing groups which have spent nearly all of their careers at a wirehouse — Merrill Lynch, Morgan Stanley, Wells Fargo — arrange their very own enterprise and use our platform.

Then, you’re in search of primarily wirehouse practices?

It began that means, however we’re having an increasing number of unbiased practices coming to us day by day saying, “We don’t wish to do all this [administrative] stuff. Can we be part of your platform?”

So [increasingly] it’s about our purchasing minority stakes in already-independent companies and taking up lots of the [things] they don’t wish to do with the intention to assist them develop sooner.

Have many Merrill advisors moved to Sanctuary?

Most likely about 40% or 45% of our companion companies got here from Merrill. A whole lot of our previous pals have adopted us, and we’re more than happy.

Inform me extra about your minority investments within the practices.

A extremely huge focus of our technique is to have an increasing number of practices through which we’ve got a stake.

It’s an vital focus of our future.

We’ll purchase a 20% or 30% stake in lots of the practices that use our platform, which supplies entrance workplace, again workplace and center workplace providers.

Generally we purchase a [whole] follow, however that’s not a core a part of our technique.

The companies that we work with wish to management their very own practices; so [that’s why] a lot of our investments are minority investments.

Please clarify why you employ the time period, “partnered independence,” referring to the practices that be part of you.

The companies are unbiased in that they make their very own selections; they run their very own companies. However they’ve a companion in Sanctuary to do lots of the heavy lifting for them.

You had been with a wirehouse for twenty years. Why did you wish to open your personal agency?

I might see that an increasing number of advisors on the wirehouses had been annoyed concerning the restrictions and the forms.

I felt if we might construct a platform the place they may serve their shoppers higher by, for instance, utilizing expertise like video, [prospects] can be extra interested in them.

You’ve opened workplaces in 28 states, together with Florida. Please speak about your Latin American platform.

The advisors on the wirehouses who had been most annoyed had been those that served worldwide shoppers. So we felt there was an enormous alternative to unfold the unbiased enterprise ideas to the worldwide markets.

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