Blueprint Bolt | 2.24.25 — Team Torque

We’ve witnessed the wealth management industry significantly up its game over the last decade, and it’s pretty clear who’s been leading the charge: RIAs with legitimate team structures.

Clients aren’t just looking for someone to "manage their money" these days. They demand access to financial solutions from a "one-stop-shop" or a facilitator who can coordinate external specialists. The industry has evolved from a focus on investments to a broader emphasis on financial planning, and I expect it to move into holistic life solutions over time.

At the end of the day, we’re in the problem-solving business. That’s not going away, even with AI. People will always have problems. Solving that ever growing list of client problems takes teams—specialists in-house, trusted partners, or a referral network you’d back fully. You also need a solid platform team to support it all and meet what clients expect and will grow to expect.

Competition has been intensifying. Private equity is pouring cash into firms, pushing everyone to get better. Lots of places say they can “do it all,” but most don’t have the setup to prove it. That won’t work anymore. Teams and specialization beat empty words.

Teams make specialization happen. They help you grow. And they keep clients and advisors happy. That’s how you make an RIA better—turn it into something efficient and built for clients.

How Structured Teams Power the Next Stage of Wealth Management

Firms with legit team setups beat siloed advisors with just support staff. They manage more assets per advisor, land bigger clients, and offer more services. Siloed advisors with support staff hit a ceiling. Teams tap everyone’s skills and grow together.

Clients are pushing this. High-net-worth individuals want a team around them that handles all their problems—taxes, trusts, you name it—but still keeps that go-to confidant lead advisor experience. According to Cerulli, 94.5% of all RIAs above $500 million AUM have teams in some form. It’s basically standard now. But the real question is: how structured are they? Plenty say they operate as teams, but I suspect most of them aren't fully utilzing team structures that can best help the firm move forward. Structured teams mean clear roles, regular collaboration, and a real plan to use everyone’s strengths.

Teams Enable the Transition from Practice to Enterprise

Advisor and platform teams work together to turn RIAs into real businesses, shifting from siloed practices to structured firms that scale.

Advisory Team: The Base

In a silo setup, advisors handle everything—client meetings, investments, all of it. It’s not ideal for clients. They juggle and make it work with what they’ve got. No real strategy. Teams fix that. One advisor leads client conversations. Another digs into portfolios. Someone else tackles taxes. They lean on each other’s strengths. Regular meetings keep them on track. It’s efficient and gives clients confident answers.

Career paths matter here. Start someone as a paraplanner—fact-finding, onboarding. Train them to associate advisor—portfolio analysis, research. Then lead advisor—client strategy. It pulls in talent, keeps them, and builds know-how.

Platform Team: The Scale

With just support staff, advisors get buried in trying to run the firm. Growth stalls. Platform teams change that. Each person focuses on their piece—operations, tech, whatever—and works to make it better every day. The firm gets proactive. Operations folks handle accounts. Tech people smooth out processes and data. Compliance keeps it safe. A true COO keeps it all steady, everyone working together, and progessing proactively forward. Partners fill gaps, in-house or out. Siloed setups react. Teams plan and scale.

Platform teams need career paths too—ones that pull in talent to scale your firm to the next level. Hire an operations assistant to process trades and fix errors, then move them to operations manager to standardize workflows and train staff, and finally to COO to lead strategy, not just take orders. Your platform team’s got to shape infrastructure, processes, and procedures—not cater to every advisor’s whims. Their experience drives the firm—tech upgrades, process tweaks, the works. Private equity’s all over this with thier initial investment acquisition vehicles; they back team-based RIAs with solid platform resources because those firms grow fast and scale big.

How Teams Drive Specialization

Siloed advisors with support staff try to cover investments, taxes, trusts, business sales—everything. They go a mile wide and an inch deep. Teams change that. They go wide and deep, using collaboration. One person masters estates. Another runs portfolios. Someone else nails financial planning. Clients get sharp answers from experts in each area. Partners like accountants fill gaps where the firm needs it. That’s specialization that sticks and builds client trust in the team.

As firms move from a practice mentality to a business mentality nearing $1 billion AUM, they should hire niche advisor roles—like tax planning or estates—and platform team specialists. Your firm will shift from mostly generalists to more specialists over time; that’s part of growing bigger. It’s not bad, but it takes time to adjust.

How Teams Enable Scale

Silo setups without a strong platform team lack efficiency and confidence in hitting peak performance. Teams fix that by working smarter. Advisors and platform staff unify under strong leadership—everyone sticks to what they’re good at. Advisors chase big client goals while platform teams tackle operations. Partners fill gaps without extra hires—synthetic scale.

One team, pulling together, scales with confidence. Leadership sets a clear plan, keeping advisory and platform roles from overlapping. This cohesion builds a foundation to push to enterprise levels—multiple locations, more services—without losing steam going forward.

How Teams Deliver Superior Experiences

Well-built structured teams with the right people make things better. They’re steady, proactive, and sharp—for clients and advisors.

For Clients

Clients stay with firms where they’re surrounded by teams and regularly hear from members they like. They update plans fast, share news quick, and guide deals like business sales. It’s service they trust. Siloed setups are at higher risk of dropping the ball. Teams don’t. Clients feel confident with a full team around them—they’re clients of the firm, not just one advisor. Platform teams help too, handling the tech-facing side clients expect more of now, keeping the experience smooth and solid.

For Advisors

Advisors in teams get room to breathe. Platform teams handle the day-to-day work—operations, tech, marketing, compliance, all that—so advisors focus on what they’re good at: clients. Silo setups pile on tasks, forcing advisors to react instead of plan ahead and streamline for next time. Teams split roles—new folks learn fast, seniors build stronger ties. It runs smooth. Platform staff aren’t just support; they shape the firm’s backbone, letting advisors zero in on clients. This keeps your best people as you grow together.

Practical Implementation: Building Your Team-Driven RIA

Here’s how to build an RIA with a real team:

1. Set roles early. Figure out who does what—advisors, platform staff, everyone. Keep them on track.

2. Use outside help. Lean on accountants or specialists who get your vision to fill gaps. Stay flexible.

3. Offer growth. Build career paths for advisors and platform staff. Good people want careers, not jobs.

4. Split advisor tasks. Try having one lead client talks, another handle portfolios, someone else plan taxes. Play to their strengths.

5. Train for niches. Pick high-demand areas and start training experts. It’s a slow shift from generalists.

6. Unify the team. Get advisors and platform staff working as one crew. Everyone sticks to what they’re good at.

7. Lead strong. Set a clear plan to keep advisory and platform roles from clashing. Takes work.

8. Focus advisors on clients. Let platform teams take operations, tech, marketing, compliance. Free advisors over time.

9. Surround clients. Build a team they trust—not just one advisor. It’s a gradual change.

10. Retain talent. Use teams to hold onto your best people. Growing together takes time.

Conclusion

The industry is only getting more competitive, not less. Siloed setups with minimal platform support can’t match structured teams that turn practices into real businesses. Advisors focus on clients while platform teams cover operations, tech, marketing, compliance. Specialization grows over time, moving from generalists to experts who handle every client problem—taxes, trusts, whatever comes up. It’s not a straight path—figuring out roles, paths, and unity takes effort and patience.

Trust the process, though. A unified team, led well, scales to places you never thought possible—multiple locations, more services, steady growth. Clients stick with a firm they trust, not just one advisor. Advisors stay because they’re freed to do what they’re good at. It’s messy at first, but that’s how you build an RIA that won't cap out.

Recap: Jeff Nash predicts that in 2025, wealth management buyers will care more about a firm’s growth history than its size when striking M&A deals. The days of “bigger is better” are fading with firms with solid growth will score the best offers, while others might need to lower their price tags.

My Thoughts: In my opinion, with the 30-year bond bull market likely over and higher interest rates here to stay, M&A will get more selective—less about financial engineering and more about real value. I 100% agree with Jeff: RIAs that are sustainable growers (think younger advisors or second-gen talent) or have unique qualities (niche services, untapped markets) will stand out. I suspect "face value" multiples will hold steady, but we’ll see a shift to higher earn-out structures with less cash upfront to protect buyers. If you’re planning to sell soon and aren’t tracking organic growth (net of market returns), you better start—it’s going to be a top-three factor. Optimizing your business for sale now will pay off big compared to the last few years when buyers weren’t as picky..

Recap: Andres Garcia-Amaya points out that RIAs’ asset growth masks a weak 2-3% organic increase, driven more by markets and breakaways than new clients, and warns that referrals from older clients won’t reach younger ones who find advisors online at age 43. He also highlights a disconnect as RIAs charge AUM-based fees for basic portfolio management, but younger clients expect more value, like standout digital experiences, for that 1% cost.

My Thoughts: I loved this article—it takes on two givens in our industry: (1) business is mostly referral-driven, and (2) the AUM fee model is standard. Referrals aren’t disappearing, but I believe they’ll drop to closer to half of new business. Younger folks do their own homework and pick advisors who resonate with them—if your digital presence isn’t great, you’re making it harder on your firm than it needs to be. Make sure it lets prospects really get to know you and your team, because this gig is more about liking and trusting who you work with than just technical chops.

On the AUM fee model, if it stays the standard, the industry’s going to have to keep doing more for clients for the same fee. I think long-term, firms will charge a lower AUM fee for investments and tack on flat fees for specific planning services. Firms segmenting client types are already in this ballpark—they get that different clients have different needs or budgets, and to stay profitable while delivering, you can’t do everything for everyone. Plus, lowering the base service level—now easier with efficient portfolio management—might bring in prospects who’d otherwise skip the industry altogether.

Recap: Will Guidara recounts how debuting at #50 on the world’s top 50 restaurants list ignited his push to lead Eleven Madison Park to #1 in six years, driven by a night of rethinking hospitality as making guests feel genuinely valued. He highlights that mastering the essentials earned them a spot, but it was “unreasonable hospitality”—like tailored welcomes and thoughtful details—that distinguished them, offering a lesson financial advisors could use to deepen client connections beyond just managing portfolios.

My Thoughts: I had to share this podcast with you. I saw Will Guidara speak at Orion Ascent a few weeks ago—seriously impressive stuff. He nails a point I’ve always believed: whatever you’re selling, the experience is what counts. Will turned Eleven Madison Park into the world’s number one restaurant, not because they had the best food (he admits they weren’t the top chefs), but by focusing hard on making clients feel valued. That’s what got them there. For advisors, it’s a wake-up call—we’re managing people as much as money, and feelings often outweigh the technical side. It’s an hour long, but worth it.

Recap: Rachel Elson from Perigon shares how a solid internship program can boost an RIA’s growth by bringing in eager undergrads to handle real client work, like onboarding, freeing up advisors to focus on service. She stresses picking interns with advisor potential from CFP-certified programs, starting them part-time to test the fit, and standardizing training to build a talent pipeline amid a tight labor market.

My Thoughts: This article’s worth a read if you’re thinking about an internship program or running a growing RIA. Rachel Elson from Perigon Wealth Management explains why it’s not just extra work—it’s a cheap way to build talent long-term. It forces you to tighten up your processes too, since you have to teach interns how you operate. She also points out CFP Board-certified programs at universities, which have grown over the last decade and are helping fix the advisor shortage. Interns from these programs already get what we do, so they start faster. The industry needs more of this—education tied to real-world experience.

Recap: Nine CEOs from top asset management firms, overseeing nearly $9 trillion, reveal that a great culture thrives on honest debates, anonymous surveys, and real feedback, even if it means calling out jerks like them. They stress that in a tough industry, fostering a tight culture—where introverted researchers and bold portfolio managers alike feel heard—is key to unlocking everyone’s best and keeping the firm strong.

My Thoughts: This 8-minute podcast is like a free MBA on building a great culture, straight from top asset management leaders. It ties directly to wealth management firms and is pure gold. Culture’s what separates firms that level up—it draws talent and builds something bigger together. Too many RIAs hit a ceiling, even with solid strategies, because culture caps them. Why? We’re in the people business, and culture’s about people. Get that right first—strategy comes second. I’d take great culture with decent strategy over decent culture with great strategy any day.

Recap: David Grau Jr. from Succession Resource Group says internal succession for advisory firms means selling off small chunks of equity—like 1-5% at a time—over 10-15 years, easing successors into ownership without a big upfront hit. He stacks that up against private equity deals promising crazy multiples (think 12-14x earnings), but points out they tweak the earnings, toss you just 20-30% cash at the start, and demand wild growth (15-20%+ a year), so sticking with an internal plan keeps your legacy alive without the PE gamble.

My Thoughts: This is a great listen for anyone in the RIA space mulling over exit or succession options. I think internal succession doesn’t get the attention it deserves—probably because service providers like investment bankers or M&A advisors make their real money on full sales, not the slow grind of internal deals. And honestly, selling internally is a lot of work. Most owners would rather take the easier path of an external sale, figuring it’s a safer bet to cash out their life’s effort. But I’d argue we’re at a point where more experienced RIA owners should ask if going internal might actually beat that out—not just for the paycheck, but for their legacy too.

If you haven’t built up any next-gen advisors, sure, a full sale’s likely your play. But if you’ve put time into young talent and have strong, rising leaders, you owe it to yourself to see if that route could pay off more. Selling outright isn’t a slam dunk these days anyway—there are all sorts of terms, conditions, and earnouts that can mess with what you actually pocket. Doing the homework to compare your options is worth it, and finding someone who won’t just nudge you toward a quick sale could make a difference.

For me, if you’ve got a great next generation, selling them most of the firm over, say, 10 years while you step back bit by bit feels smart. You could even hang onto 10-20% as a long-term stake—something that keeps paying dividends for you and your family down the road. I’d love to hear what other RIA owners think about this—how are you weighing internal vs. external exits?