The demand for the growth of the advisory companies has some reaching out of strange companions for financial help.
Richard M. Schulze who is the founder of Best Buy is one of the investors who not long ago took a 25% stake in the Meristem Family Wealth which is an approximately $2.35 billion management firm which wanted to expand.
Yesterday, a five-month-old advice company called Manhattan West Asset Management stated that Metallica’s bassist Robert Trujillo invested in the growing of RIA.
Such investments in the industry show how much it had grown in the last ten to fifteen years, when then there was no capital available from third party investors, according to the principal of Advisor Growth Strategies, John Furey.
However the owners of the advisory firms do not want to lose any part of their independence when they take in such investments, and they certainly do not want to be tied with a short timeframe to repay these enormous sums.
The CEO of Meristem stated that the company wanted to sell a small portion of the ownership and they also wanted the investors to look in the long run, in other words, they want the firm to be owned by professionals. The organisation did not say how much money was invested in them, however, the CEO Charlie Maxwell still owns 75%.
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