W2 Platform Enables NewEdge to Deliver Additional Professional Growth Paths for Successful Financial Advisors Across Business Models
NEW ORLEANS – February 16, 2023 — NewEdge Advisors, LLC, a leading New Orleans-based RIA supporting successful independent financial advisors nationwide, announced today that it has expanded its affiliation options to include an employee model that will provide financial advisors greater flexibility — and opportunities — to pursue growth.
Under this new affiliation model, NewEdge Advisors will partner with independent advisor practices and ‘wirehouse’ breakaways and invest in them to create anchor branches under the NewEdge Advisors brand, helping the practices grow and pursue strategic opportunities. NewEdge will then purchase retiring advisor practices for these anchor branches and assist with efforts to absorb and grow the acquired books.
This model is suited to successful, rapid-growth advisors searching for scale, as well as retiring advisors seeking to transition clients to accomplished advisors at institutional valuations. NewEdge Advisors is offering the new employee model only to existing firm teams and external advisors who qualify from a growth, AUM, planning, culture and investment perspective. Reinke Gray Wealth Management of South Dakota, which joined NewEdge in 2018 under a 1099 affiliation, is the first firm to affiliate through the W2 model.
“Our offering provides more choices for well-established independent advisors to shape their future,” said Neil Turner, NewEdge Advisors Co-CEO. “We’re not looking to mold a team into what we think they should be. We only work with successful practices already possessing the capabilities and capacity to handle growth. We support great advisors. We don’t create them.”
Flexible Growth Strategies
The employee model overcomes a growth roadblock experienced by advisors wanting to leverage the consolidation trend but lacking the resources to conduct acquisitions. By identifying and purchasing established businesses from retiring advisors, NewEdge Advisors assumes the recruiting function and financial risk, so advisors can concentrate on building client relationships and managing wealth.
NewEdge Advisors Co-Founder, Alex Goss, said, “We’re different from the typical employee advisor model. We believe the relationship between the advisor and the client is where client loyalty is fostered. We focus on putting our advisors in the best position to win new clients and strengthen their existing relationships. Our program is a win-win for everyone: continuity and quality service for the client; risk-free acquisition and autonomy for our employee teams; and cultural alignment and monetization for the seller.”
He added, “With the retiring advisor wave finally hitting the shore and some experienced advisors wanting to build their practices by taking on these books of business, the time was right for this model. It gives NextGen advisors a path to growth where they can maintain their businesses, grow assets and continue to receive competitive payouts over the long term. It also gives retiring advisors confidence that their clients are moving to tenured advisors and not smaller practices that lack the capacity to absorb a new client book. “
Successful First Transition Completed
NewEdge Advisors team, Reinke Gray, is the first group to take advantage of this new program by successfully transitioning to the W2 platform. Led by Brad Reinke and based in South Dakota, the 25-year-old firm manages $400 million in assets for clients in 22 states with a focus on integrated financial planning design, coordination and execution.
Mr. Reinke said, “We are excited to start this new chapter with NewEdge. We had considered several strategic growth options, but none enabled our team to deliver the kind of service we expect to provide to our clients. The support, services and solutions at NewEdge Advisors have always been stellar and now, with this new offering, they have taken their ‘advisor first’ approach to the next level.”
About NewEdge Advisors
New Orleans-based NewEdge Advisors is a leading RIA founded by Alex Goss and Neil Turner. The firm, built by advisors for advisors, embraces a transparent approach to educating advisors on the independent opportunities that currently exist in the industry landscape. This approach, combined with advisor-first services and multiple affiliation models, including direct 1099 and W-2, continues to attract high-performing advisors from across the country. The firm serves advisors in 32 states from coast to coast.
Previously known as Goss Advisors, the firm became a part of EdgeCo Holdings in 2020 to lead the 1099 wealth division. In 2021, NewEdge Advisors was created as a part of the launch of NewEdge Capital Group.
About NewEdge Capital Group
NewEdge Capital Group and its subsidiaries collectively trace their roots back over 30 years and provide best-in-class technology-enabled solutions and support services to financial advisors and their clients. Today, NewEdge Capital Group has over $32 billion in client assets and supports over 300 financial advisors servicing several thousand households, family offices and institutions comprising more than 75,000 client accounts. The company is a division of EdgeCo Holdings, LP, which collectively services over $150 billion in assets through NewEdge and its other custody and retirement businesses. For more information, visit www.newedgecapitalgroup.com.
Donald Cutler or Lorene Yue
Haven Tower Group