Wealth management’s newest competitor is 177 years old

Read the article below or see the original published article from OnWallStreet here

An almost 177-year-old investment bank aims to be the newest player in wealth management, courting talent from both RIAs and wirehouses. Is there room for another entrant in the lucrative, but competitive wealth management marketplace?

New York-based Laidlaw intends to find out.

The firm has tapped a former wirehouse and IBD executive, Richard Calhoun, to oversee its expansion into wealth management. It’s already recruited several advisors and plans to ramp up hiring efforts in 2020.

“I see myself as the general manager and I’m trying to find the right talent for this team and just let them run with it,” CEO Matt Eitner says.

Laidlaw intends to entice advisors with a recruiting deal, an offer of equity in the company and the ability to tap into its existing investment banking operations. Advisors will be able to offer clients access to IPOs and private equity deals, executives say. Plus, there will be far less bureaucracy than exists at the wirehouses.

“We can make decisions nimbly and quickly. We don’t have to go through three different committees to get to a ‘yes,’” says Calhoun, who previously oversaw Wells Fargo’s independent broker-dealer, Wells Fargo Advisors Financial Network.

To be sure, other firms have trod a similar path — and stumbled. Lebenthal Wealth Advisors and Cantor Fitzgerald tried to leverage legacy names to gain a foothold in wealth management. Both firms failed to gain traction.

In Lebenthal’s case, the firm had some early notable successes, recruiting a few top wirehouse advisors and filling management posts with former Smith Barney executives. But the firm struggled in a fierce recruiting environment, and shuttered its wealth management business in 2016.

“We probably were just not competitive enough in terms of what we could offer,” Alexandra Lebenthal, CEO of Lebenthal Holdings, told Financial Planningfollowing the firm’s denouement.

But even as some firms have bid adieu to wealth management, new players continue to throw their hat in the ring and some have shown sticking power in recent years. Among them: Steward Partners, Snowden Lane, HighTower and Focus Financial.

“If the niche is well defined enough, then I’d argue there is [room for a new wealth management firm],” says recruiter Danny Sarch.
But to recruiter Frank LaRosa’s mind, it’s less a matter of finding a niche than execution.

“All these different firms have the same solutions, they’re using the same technology. It’s about how they present it, how they support their advisors and what’s the culture they will supply,” LaRosa says.

Adding Calhoun was a smart move, he adds. “I know Rick from when we were at Smith Barney together. He’s a good recruiter. He can resonate with wirehouse advisors because he’s lived that.”

To replicate the success of some independent firms, Laidlaw has tapped two consultants with past experience at Steward Partners: Scott Abry and Michael Maurer.

Steward Partners was founded by former wirehouse executives in 2013 and grown to more than 100 advisors operating from more than 20 offices.

Of course, wealth management’s appeal as a business is obvious; there’s recurring fee revenue to be had, widespread need for financial advice among aging baby boomers and a number of dissatisfied advisors ready to decamp to greener pastures. It’s why firms like Steward Partners, Lebenthal and others keep making a go of it.

“Seeing what other independent firms had done over the past 10 years, plus the exodus from the wirehouses … that to me looked like the perfect opportunity” Eitner says.

Cerulli Associates estimates average AUM for advisors across the industry was $65.5 million in 2018, up from $55.1 million four years prior. Wirehouse brokers remain the industry’s most productive, overseeing on average $147 million in 2018, according to the research firm. That’s up from $132 million for 2014. It makes them a prime target for firms looking to grow via recruiting, particularly from national and regional BDs, according to Cerulli.

“Although much of the industry buzz has been around advisor migration to the independent channels, for wirehouse advisors interested in a change due to dissatisfaction with their current firm’s culture, or senior management, migration to the national and regional BD channel can be the most natural fit,” the research firm says in a recent report.

Top reasons for moving include dissatisfaction with senior management, desire for greater independence and the ability to build financial value in independent business, according to Cerulli.

“We’re trying to attract advisors who are running to something rather than away from something,” Calhoun says of Laidlaw’s efforts.

In offering new hires equity in the company as an enticement to move, Laidlaw is mimicking what some other independent firms founded in recent years have done. And, like other aggressive recruiters who tout amenable corporate environments, Laidlaw is banking it can foster an attractive culture for disaffected brokers.

Mel Lewis, who left Morgan Stanley to join Laidlaw’s New York office, pointed to his start at E.F Hutton in 1983 as a reason to switch. “I wanted to get back to a firm with a similar culture and commitment to my clients and me that I felt at E.F. Hutton,” Lewis said in a statement.

Culture is also a reason Laidlaw has eschewed the IBD model. The firm’s leadership does not believe they could cultivate the culture they want via a 1099 model, which would result in a more fragmented advisor force.

“That’s our secret sauce,” Eitner says of the firm’s culture. “It’s something that you need to come sit with us to really understand.”

Click here to see Dr. Ann Marie Sastry, chief executive officer, Amesite Inc, explain here disruptive online learning AI technology

Also, see article below or read original from Yahoo Finance here

Amesite Inc. Raises $5.5 Million in Oversubscribed Financing Round

Company Provides Customized Learning Paths Developed by AI-Powered Online Platform for Enterprises, Colleges and Universities

ANN ARBOR, MI / ACCESSWIRE / January 6, 2020 / Amesite Inc., (the “Company”) an artificial intelligence software company providing fully-managed, customized, online learning ecosystems for the enterprise and higher education markets, today announced that it has closed an oversubscribed $5.5 million financing round to certain accredited investors. The Company has raised a total of $11 million in funding from private financings since its founding in 2017.

As the Company continues to grow its portfolio of artificial intelligence software products designed to improve learning, the net proceeds from the financing will be used to support sales and marketing efforts across its growing customer base and support company operations.

“To ensure employees have the in-demand skills they need to succeed in the future of work, and students and teachers have access to up-to-the minute learning materials, we are committed to investing in our machine learning and artificial intelligence-powered platform,” said Dr. Ann Marie Sastry, chief executive officer, Amesite Inc. “Our most recent financing will be instrumental in helping us support our growing customer base of enterprises and higher education institutions, while bolstering our continued software innovation efforts and growth into new markets.”

Laidlaw & Company (U.K.) Ltd. acted as the exclusive placement agent for the offering. Laidlaw’s Head of Capital Markets, Jim Ahern, commented, “Laidlaw is excited to be partnering with Amesite, who bring world class innovation and expertise that is needed to unlock the tremendous value of applying machine learning and artificial intelligence to learning environments. We look forward to our journey ahead with them.”

Amesite’s online learning solutions for enterprises, colleges, universities, faculty and students utilize artificial intelligence technologies, including machine learning and natural language processing, to deliver cost effective, cloud-based digital versions of courses that greatly enhance and improve the learning experience of students. Amesite’s online platform includes customized user messaging and tracking as well as seamless integration of updated topics and materials into traditional course curriculum, creating a more meaningful experience for both students and instructors alike.

The securities sold in Amesite’s private financing have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Amesite Inc.

Amesite is a high-tech artificial intelligence software company offering a cloud-based platform for learning products to be cost-effectively and conveniently delivered to learners online, in business, higher education and K12. Amesite uses artificial intelligence technologies to provide customized environments for learners, and easier-to-manage interfaces for instructors. For more information, visit https://amesite.com/.

Forward Looking Statements

This communication contains forward-looking statements concerning the Company, the Company’s planned online machine learning platform, the Company’s business plans, any future commercialization of the Company’s online learning solutions, potential customers, business objectives and other matters. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “plan,” “believe,” “intend,” “look forward,” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement. Risks facing the Company and its planned platform are set forth in the Company’s filings with the SEC. Except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Laidlaw’s ‘Brighter Future’ Comes Into Focus; Richard Calhoun, Former Wells Senior Executive, Brought on as CEO of Laidlaw Wealth Management

Addition of Highly Regarded Industry Leader Signals Confidence in Growth Plans, Expansion of Leadership Team and Company Footprint

NEW YORK–(BUSINESS WIRE)–Laidlaw Holdings LTD, the holding company for Laidlaw Wealth Management, Laidlaw Capital Markets and Laidlaw Private Equity, today announced that Richard J. Calhoun, Jr., the former Head of Innovation and Growth for Wells Fargo Advisors Financial Network (FiNet), has joined as the Chief Executive Officer of Laidlaw Wealth Management and the sixth member of the firm’s Board of Directors.

Matt Eitner, Laidlaw’s CEO, made the announcement internally yesterday: “I am excited to have Rick join us. As our search progressed, it became clear that Rick stood above all other CEO candidates. He is a highly regarded industry leader and he shares the same culture and values as Laidlaw. Rick’s reputation, 28 years of industry experience and list of accomplishments are exceptional.”

Mr. Calhoun said the following: “I did a thorough Due Diligence on Laidlaw, particularly getting to know the people. The transformation that has occurred under Matt’s leadership has been extraordinary. Matt and his team have created a culture, enthusiasm and energy sorely missed in our industry. They have also put together what I believe is a highly dynamic value proposition sure to attract top advisors and management candidates.”

The New Laidlaw offers a Value Proposition designed to reward its existing partners, and attract a defined number of top-level advisors, investment bankers and senior executives. The company’s detailed and thoughtful long-term business plan combines the best elements of Laidlaw’s 177-year history with a cutting-edge platform, new technologies, and an expanded offering of products and services.

Mr. Eitner continued, “We needed a CEO with broad experience and proven success building a best in class offering for our clients. In Rick’s career he has had responsibility for Practice Management, Business Development, Recruiting, Products & Services and M&A. He has been a Financial Advisor, Branch Manager, Regional Director and most recently President and equity partner of a private investment management company. He understands our business and our industry from every angle, but more importantly he understands and cares for people.”

The Founder and Former CEO of Steward Partners, Mike Maurer, who serves as an Independent Board Director for Laidlaw said, “Without question, Rick was the best person for the role as CEO of Laidlaw Wealth Management. The company’s business plan is complex. He understands it and has demonstrated time and time again his Leadership skills and ability to execute.”

Mr. Calhoun continued, “Our Newly designed company is distinct far beyond what the public currently knows about Laidlaw. I am thrilled to be part of such an exciting future. I look forward to working closely with Matt, Mike and the entire leadership team to help Laidlaw forge a new path to a brighter future.”

Contacts

Scott Abry
Abry Advisors, LLC
203-253-6018
scott@abryadvisorsllc.com

Seven Questions With Tony Sirianni: Laidlaw Wealth Management LLC.

AdvisorHub’s CEO Tony Sirianni sits with established leaders of the largest firms, as well as up and coming disruptors, so advisors can get a sense of how each firm addresses the same issues from different perspectives.

Ken Mathieson is the Founding Partner of Laidlaw Asset Management LLC. LAM is an SEC Registered Investment Advisor affiliated with Laidlaw & Co ( UK ) Ltd. Established over 175 years ago in 1842, Laidlaw is a truly global, multi custodial wealth management firm. Offices are in NYC, San Francisco, Boca Raton, Boston, Long Island and London.

Question: Why Did you get into this business in the first place?
Answer: My father, grandfather and all of my uncles were policemen. Listening to their stories and the hardships of being a policemen in the 60’s and 70’s really turned me off. In particular, my father was passed up for a promotion (and pay raise) for many years because of societal pressures that were out of his control. The idea that you could work hard, be a loyal employee and not be rewarded just seemed unfair. I wanted to work in an industry that rewarded hard work, loyalty and brotherhood. Like my father I also wanted to help people. I saw that helping people plan for their financial future and the ability to retire enjoying all that hard work was what I wanted to do. Wall Street was a natural fit.

Question: Looking back at the changes over the last 15 years, which have been the most damaging to our business in your opinion? What have been the most exciting and positive?
Answer: The quick answer is pricing pressure from the perspective of an advisor, but I’m not sure that is the most damaging. Wall street has been dealing with pricing pressure for decades. I believe that the most damaging has been lack of transparency and the loss of client trust. Hence the movement away from brokerage and a suitability standard and a movement toward the RIA model with its Fiduciary Standard. In my opinion, the most exciting and positive has been the democratization of Wall Street. When I started working, your only option to getting into the business was to join a firm’s training program, a large firm if you were lucky. The big Wall Street firms controlled all of the trading, all of the research and all of the market access. Today, I believe that power has shifted. Fifty years ago there were thousands of small brokerages. Thanks to visionaries like Sandy Weill, they have all been consolidated and today just a few dominate. Now we see tens of thousands of small firms leveraging large custodial infrastructures and a few major RIA’s and independents. The recent news that Wells Fargo and UBS (and others) are now risking the cannibalization of their business, or in their mind, stemming the outflows of advisors and client assets by launching RIA units, speaks to this point.

The most exciting part is the use of technology and how it allows advisors to better serve their clients and to break away from the wire houses. We use Charles Schwab as a custodian and each year I attend their Impact Conference. It is amazing to attend and learn about all of the vendors and tools that are available to independents. You quickly understand the amazing ecosystem that supports our industry.

Question: How has your firm adapted to address the rapidly changing Wealth Management landscape?
Answer: We are in a very unique position as we are a 177 year old Investment Banking and Brokerage boutique that can adapt very quickly to the changing landscape. Matthew Eitner, the CEO of Laidlaw, recognized that he needed a more robust Wealth Management offering to compliment our Investment Bank and Private Equity offerings. Hence, we created an SEC Registered RIA with an open architecture and best in class custodians, global capabilities, cutting edge technology and a very generous compensation structure with the same class equity ownership as the founders. I have been in the business for over 30 years, mostly as an advisor in a wire house. Five years ago, I moved to be a Founder in an Independent, W2 model firm. That firm executes on a captive platform and I realized that to be part of the future, advisors would want more options and capabilities to meet their clients sophisticated needs. No single custodian can best facilitate all of your client’s needs. That is what we created at Laidlaw.

Question: What part of the Advisor business will never change?
Answer: Trusted advice from a trusted advisor, period. It will always be about the Advisor / Client relationship. Look at what happened when Robos were going to put advisors out of business because millennials wanted technology so they could do it all on their own. That did not and will not happen because they still want a relationship with an advisor.

Question: What 3 things differentiate Laidlaw from the competition?

Answer: Laidlaw Asset Management is a partnership in name and in practice. Every advisor who brings fee based assets to the firm owns shares in the firm and is treated as such.

• As a Universal Wealth Management firm, Laidlaw can help clients in over 170 countries. We are dually registered, holding a U.S. registration and an FCA registration in the U.K. We see the wire houses limiting the countries that their advisors can service all of the time. I see this trend continuing.
• Laidlaw has a unique opportunity to leverage our Investment Bank. Because of our wealth management capabilities, we can help our corporate clients with stock plan administration, 401k, cash management and financial planning for the employees. Most wire houses limit the number of advisors who can do this business. At Laidlaw we are looking for qualified advisors to help us. Look no further than the recent acquisition of Solium by Morgan Stanley. This is big business and will be a major driver for Laidlaw and our advisors.

Question: Would you encourage your children to enter the Wealth Management business?
Answer: The wealth management business is an amazing career choice for many, but it isn’t for everyone. I have three children. I’ve encouraged my oldest to work at Laidlaw. As for the other two, time will tell.

Question: What are your interests outside of the Wealth Management biz?
Answer: My interest outside of work is being a dad. If that means watching a lacrosse game, traveling or cooking with my children etc., than that is what I am interested in, family first. It is also big part of our culture at Laidlaw as we are a young senior management group with families that understand the importance of a well-balanced life.