Welcome OLV Investment Group clients. We are honored to have you join the Procyon community.
Despite a challenging macro backdrop, US large caps continue to dominate the investment landscape. Like mighty creatures in the wild, these companies combine scale, strength and adaptability to excel in their native habitat. This issue of Due Diligence Report explores what lies beneath their power – from fundamental metrics and sector dynamics to strategic positioning – helping fund buyers track the instincts and behaviors that keep these market giants thriving.
Connecticut RIA Procyon has made its first acquisition since it sold a stake in itself to serial wealth management investor Constellation Wealth Capital (CWC).
The $8bn firm said Tuesday that it has agreed to purchase Wooster Corthell Wealth Management, a fellow Connecticut RIA with roughly $600m in client assets. Procyon is headquartered in Shelton, a suburb of New Haven, while Wooster Corthell is located roughly an hour north in the Hartford suburb of Glastonbury.
Specific financial terms of the deal were not disclosed. Procyon said the deal with Wooster Corthell will push it to roughly $8bn in assets under management.
‘We are continually striving to make our clients’ lives easier by delivering more value in one place,’ stated Procyon chief executive Phil Fiore. ‘This acquisition is another step forward in fulfilling that promise.’
Fiore, an ex-UBS advisor, launched Procyon alongside four founding partners in 2017 with the assistance of RIA middle and back-office service platform Dynasty Financial Partners. The firm has remained with Dynasty since and has pulled off a handful of acquisitions.
In April, Procyon revealed it had sold a minority stake of an undisclosed size to CWC, a nascent RIA investing business founded by former Emigrant Partners chief executive Karl Heckenberg. Heckenberg closed a $1bn capital raise for the firm in 2024 and has taken stakes in several large RIAs, most recently revealing a deal on Monday with $20bn Merit Financial Advisors.
Procyon will add three advisors and five support staffers through the deal with Wooster Corthell. The firm is led by chief executive Matt Corthell, who succeeded now-retired company founder Al Wooster in 2022 as part of a planned succession.
Most retirees know that at some point they’re going to start moving money out of their 401(k) plans. But not everybody thinks about how that happens, or how many ways there are to do it. Or which ones could hurt their portfolios.
In fact, these plans often have specific redemption structures—and the withdrawals must automatically follow strict procedures. The bad news is that the way it’s done can thwart a retiree’s intentions or even throw asset allocations out of whack.
For example, some 401(k)s may take the requested money from low-risk assets in the accounts, inadvertently increasing a retiree’s risk exposure. Other 401(k) plans don’t allow partial withdrawals at all, according to Tamiko Toland, founder of 401(k) Annuity Hub in Santa Fe, N.M. While some plans allow participants to specify which fund or funds they want redeemed, other plans require the investors to take their money out “pro rata”—which means certain percentages of various holdings must come out.
Still other plans use a “hierarchy” approach—automatically taking money first from the lowest-risk and/or most easily traded funds, such as money-market investments, ostensibly to preserve the account’s growth potential, Toland said.
That means anybody who has more than one mutual fund or exchange-traded fund in their account could find themselves facing less than desirable distribution methods, Toland said.
Many clients don’t even discover these restrictions until too late. “This is something that an individual should find out during the retirement-planning process … before the need to take actual withdrawals comes up,” she said.
According to IRS regulations, clients cannot take distributions from retirement accounts before they turn age 59½ without incurring a 10% penalty—unless there are extenuating circumstances such as medical emergencies. In addition, Rule 72(t) allows for penalty-free early withdrawals if they are taken in periodic equal payments over a period of at least five years. (The amount of the payments depends on the account owner’s remaining life expectancy.) Some clients might feel desperate enough to take this route, but experts caution that it’s a last resort for reducing financial stress, and clients should first look into such measures as debt consolidation and bankruptcy before turning to these kinds of withdrawals if they are in bad financial straits.
Retirees should only take cash out of a 401(k) in concert with their overall retirement plan, Toland cautioned.
Plan Record-Keepers
The restrictions on clients’ withdrawals are often imposed by the plans’ record-keepers, she said, not the plan sponsors themselves. An employer might not even be aware of them. “Employers are increasingly working to create distribution options that support retirement income planning,” she said.
Take Fidelity Investments, which administers many of the nation’s 401(k) holdings. A company statement explains that most plans—though not all—have the distribution rules outlined in documents such as the summary plan description. But even within Fidelity-run plans, every plan sponsor’s terms are different. There is no universal protocol.
To some advisors, such disclosures aren’t adequate.
“While the procedures may technically be disclosed somewhere in the plan documents, they’re rarely highlighted or explained in a way that’s clear to participants,” said Amber Kendrick, a retirement plan consultant at Procyon in Shelton, Conn. The protocol is often buried in the record-keeper’s operating procedures or custodial agreements, she said, not clearly disclosed in participant-facing materials. “This lack of transparency can lead to confusion or unintended investment outcomes.”
To maintain a desired asset allocation, some clients might want to reallocate the funds in their portfolios before taking money out of their 401(k)s. Such a pre-emptive move “can be a smart strategy,” Kendrick said, “but only if it aligns with the participant’s goals and time horizon.” This sort of proactive approach could help the clients avoid an unintentional overweight in equities or an underweight in safer assets, she said, though it’s best to first try ascertaining the 401(k)’s exact default protocol before shifting assets.
“As a 401(k) advisor, I recommend that participants understand whether their plan has a set withdrawal protocol before taking any distributions. Not all plans do,” she said.
To know for sure, she recommends asking the plan administrator or record-keeper directly for specific guidance. “As advisors, we make it a point to review these operational details with our clients so they’re not surprised later. Understanding how the plan handles withdrawals is a crucial part of retirement planning—it’s not just about how you save, but how you spend that matters.”
By the same token, clients shouldn’t make rash withdrawals from their retirement plans. “We do not allow [clients] to blindly rebalance,” said David Demming, president of Demming Financial Services in Aurora, Ohio. “We oversee it.”
Other advisors recommend that when clients want to take money out of their 401(k) plans, they should request specific funds to be sold rather than a dollar amount.
“I don’t believe a company can force a distribution on certain funds versus an employee’s stated desire for specific funds to be sold,” said Charles Weeks Jr., a certified financial planner at Barrister in Philadelphia.
He acknowledged, however, that some companies’ rules may say that if the client does not specify what funds to sell, the companies themselves may start by selling off the funds with the lowest expense ratio. “This is likely on a custodian-by-custodian basis,” Weeks said. “But yes, clients should be aware that if they don’t give specific instructions to the custodian, the custodian may just choose what they sell to make the distribution.”
The most important lesson, Weeks said, is to stay vigilant and aware of “the overall allocation of the portfolio.” If rebalancing is necessary to maintain the desired mix, the timing shouldn’t matter. “Given that rebalances in 401(k)s are tax-free events, I don’t think it is impactful whether it occurs before or after the distribution,” he said.
Don’t let their stature fool you – small and mid-caps are built for more than play. Nimble, focused, and wired for innovation, they are poised to outpace the big players and fuel future growth. This issue of Due Diligence Report explores the future in miniature: the firms using creativity, precision, and bold strategies to punch above their weight. With a robot dog as our symbol of bite and brains, we spotlight the businesses proving that today’s lightweights may just be tomorrow’s leaders.
For some advisors, there’s more to knowing your customer than “KYC.”
Every wealth manager is well acquainted with the “Know Your Customer” or KYC rule. That’s because KYC is a regulatory requirement for financial advisors to verify the identities of their clients and monitor their business activities. The KYC rule helps prevent fraud, money laundering, and all sorts of other bad things.
Nevertheless, knowing your customer and going so far as to focus your business around a shared interest offers sales and marketing benefits as well. Some wealth managers even build their entire practices around a primary niche or specialized client focus, be it an industry, profession, demographic, or some other affinity group.
Alexandra Bean, wealth advisor at PUREfi Wealth, for example, may work with a diverse group of clients, but she is particularly passionate about working with women and members of the LGBTQ+ community. While building her practice, she found that many of the clients she naturally connected with were women navigating big life transitions, or LGBTQ+ individuals looking for a safe, judgment-free planning environment.
“This niche chose me, in many ways. As a gay woman in the financial industry, I’ve personally experienced how intimidating and exclusionary financial spaces can sometimes feel,” Bean said.
Recognizing how underserved these groups often are, she made a conscious decision to center her practice around them. She adds that concentrating on this segment of the market also helped shape PUREfi’s brand as a “modern, inclusive firm where clients feel genuinely seen and supported, especially those who haven’t always felt like the typical wealth management client.”
Caroline Wetzel, private wealth advisor at Procyon, meanwhile, has built her business by serving fellow Cornell University alumni. In her view, their mutual experiences as students learning in a demanding institution, engaging with specialists within and across disciplines, and navigating dynamic information has impacted them far beyond the classroom. In fact, it affects how they approach personal lives, careers, and our finances, according to Wetzel.
“Many Cornellians I work with like that I am their private wealth advisor today after enjoying a fulfilling first career as a global corporate executive. They think of me as their experienced financial strategist who listens to what’s important to them, connects them with relevant experts and resources, and distills theoretical opportunities into concrete actions that are useful to them and loved ones,” Wetzel said.
Elsewhere, Derek Wittjohann, chief operating officer at Premier Path Wealth Partners, focuses on working with individuals with what he calls the “owner’s mindset.” By that he means wealth creators who think and operate like business owners.
“They are generally middle-market owners who represent industries such as manufacturing, distribution, logistics. We call them ‘rust, dust, and smoke’ and these businesses generally produce $25 million to $300 million in revenue,” Wittjohann said.
PUREfi Wealth’s Bean believes authenticity is key when marketing her services, and especially withing her customer niche. She finds that sharing relatable, real-life stories, whether through social media, educational events, or one-on-one conversations, resonates far more than traditional financial jargon. Bean has also had success hosting small, curated gatherings where people can connect in a more intimate and trust-building environment.
“I lean into content that speaks directly to the unique financial questions women and LGBTQ+ professionals are asking, like balancing career growth with caregiving, planning for children as a same-sex couple, or aligning wealth with social impact. Referrals have also been powerful, especially from existing clients who appreciate our shared values,” Bean said.
Similarly, Wetzel said social media, alumni conferences, and word of mouth have been most effective in helping her connect with Cornell alumni.
“Cornellians are active individuals in a variety of settings who value relationship building, learning, and growing,” Wetzel said.
Emphasized Wetzel: “Clients work with advisors that they like, who they believe understand them, and who offer them something of value. Notice the people with whom you have a natural affinity and explore specializing in serving them as a niche.”
Coming out of the relatively restrictive environment of a wirehouse, Wittjohann is now rethinking his marketing plans and ways he can connect with an audience. With this focus in mind, he is tailoring his content to speak directly to the business owner and family enterprise.
“We’ve considered developing a podcast which would speak directly to the needs and interests of our clients – looking to address the unique challenges they face. We’ve recently begun attending industry conferences that our clients attend, not financial in nature. This allows us to keep our finger on the pulse of what they’re experiencing, and meeting our clients where they are,” Wittjohann said.
Wittjohann firmly believes advisors need to have courage to specialize. Specialists, in his opinion, stand out among a sea of generalists.
“We focus on being ‘everything to someone’ rather than ‘something to everyone,’” Wittjohann said. “Although it takes time to develop your niche, once you do, you’ll find a sense of clarity and conviction that will guide the business decisions of your practice.”
“You may need to turn away business that doesn’t fit, but the strength of the relationship that is strongly aligned is well worth the trade-off,” Wittjohann said.
Along similar lines, Bean advises fellow wealth managers “not be afraid to go deep.” Many advisors worry that narrowing their niche means limiting their opportunities. According to Bean, however, it allows an advisor to become a trusted expert and build stronger referrals within a community.
“When you truly understand the lived experiences and financial needs of your audience, you can deliver more relevant, meaningful advice and that’s what builds loyalty,” Bean said.
Recent dips in the market were good opportunities to convert traditional IRAs and 401(k)s to Roth accounts, advisors say. But clients who missed out shouldn’t despair.
“Periods of increased market volatility can present a great opportunity for Roth conversions,” said Bob Alimena, a private wealth advisor at Procyon in Melville, N.Y. “When markets become oversold, it presents the opportunity to convert funds from pre-tax to Roth at a discount, and then allow the future appreciation or bounce back to happen within the Roth.”
Unlike with traditional IRAs and 401(k)s, contributions or conversions to Roth accounts do not give you an immediate tax deduction. But withdrawals from Roths are tax-free, unlike withdrawals from traditional retirement accounts. That’s why advisors say that Roths make the most sense for clients who anticipate being in a higher tax bracket later in life—perhaps because of an inheritance, the sale of a large family home, kids who are no longer tax-deductible dependents or any other reason.
Another advantage of Roths is that they are exempt from required minimum distributions (RMDs), unlike other types of retirement accounts that force policyholders to take out a percentage at age 73 and every year thereafter—and pay income taxes on those amounts. RMDs can also push clients into higher tax brackets, trigger Medicare surcharges and increase the taxable portion of their Social Security benefits. Roth conversions eliminate those costly hassles.
But the conversions themselves are taxable, so advisors say it’s best to do them when your taxes are low—for instance, early in your career or in any year that income dips. The logic is pretty straightforward: Income taxes are due on the total value of converted shares, and when income drops, or those shares are discounted from a market selloff, the tax due is less than it would’ve been otherwise.
In other words, the timing of Roth conversions can make a big difference, said Alimena. For example, if you convert traditional IRA assets when their value drops to $80, you only pay extra income tax on that $80. If the market subsequently recovers and those converted assets appreciate to $100, you end up with $100 in the Roth but only paid taxes on 80% of it, he explained.
He added that clients often have some “gap years,” typically between ending their working career and before turning age 73, that are also ideal for Roth conversions. Taxable income has dropped significantly but required distributions haven’t started yet. In that window of time, he said, the client’s tax bracket is much less than when working full time and lower than it’s expected to be later in retirement.
“When considering Roth conversions for our clients, we run a conversion analysis to identify the optimal years or market conditions to make conversions,” he said.
Follow A Broad Plan
It’s important to follow a broad plan, however, and not just jump into Roth conversions after a steep market sell-off without paying attention to your tax bracket and other factors, advisors say. “Roth conversions can be tricky, if you don’t really know your client’s full tax picture,” said Markham Hawkins of Quotient Wealth Partners in Denver.
Typically, he said, he prefers to do clients’ Roth conversions early in the fourth quarter of the year. By then, he usually has “a good handle on a client’s total income for the year, avoiding surprises like an unexpected inheritance or a large realized gain,” he said.
To avoid having the extra taxable income from a conversion push clients into a higher tax bracket, you need to start by knowing what bracket they’re already in. “To do that, you need to understand all sources of income—dividends, capital gains, even things like deferred compensation or restricted stock units,” he explained, referring to equity compensation that’s promised to employees to incentivize them to stay with the company and share in its growth.
Therefore, while it may be wise to do Roth conversions at depressed values, that isn’t “a blanket recommendation,” as Cameron Rosenow of NorthRock Partners in Raleigh, N.C., put it. “It depends on the client’s broader tax picture and long-term planning goals.”
For him, it’s often best to construct a Roth strategy as part of an annual review, he said, perhaps layering in partial conversions over time as conditions and goals change.
In most cases, advisors designate a dollar amount for clients to convert in any given year, based on each individual situation. The goal is to “fill up” each client’s tax bracket—that is, convert just enough dollars to take full advantage of the client’s current tax bracket, without pushing the client into the next, higher bracket. If that dollar amount happens to convert more shares because the market took a nosedive, that’s just an added benefit, icing on the cake.
Among the other factors to consider, Rosenow cited the client’s age and investment time horizon, since the longer assets are held in Roth accounts the more likely they are to prove beneficial; pending legislation, in case changes in tax laws impact future rates or conversion rules; tax-bracket thresholds, to determine if the client has room to make a conversion without jumping into a higher tax bracket; and whether the client has sufficient cash in a separate account to pay the tax on the conversion.
A further consideration involves estate planning. In general, nonspouse beneficiaries who inherit either traditional or Roth IRAs must empty them within 10 years of the original owner’s death. But during those 10 years, RMDs are due every year from traditional IRAs that are inherited, if either the original account holder or the new one is 73 or older. RMDs are not mandated for inherited Roth accounts.
The Pro Rata Rule
When undertaking Roth conversions, it’s also important to remember the “pro rata rule,” said Jeremiah Winters at Founders Grove Wealth Partners in Richmond, Va., referring to an IRS regulation that says if any portion of a client’s traditional IRAs and 401(k)s were made with after-tax contributions (also called “nonqualified” assets), only the percentage that was pretax (or “qualified”) must be taxed when converted to Roth accounts. So if $100 of IRA assets is converted to a Roth, say, and only 75% of the client’s aggregate assets in traditional IRAs and 401(k)s is “qualified,” then only 75% of the conversion—or $75, in this example—is taxable.
If all of a client’s retirement assets happen to be nonqualified, a Roth conversion is completely tax-free “because taxes have already been paid on these dollars,” he said. That’s “low-hanging fruit for a Roth conversion.” (401(k)s may be more likely than IRAs to have nonqualified assets, because of how contributions are made.)
Given so many potential benefits of Roth conversions, advisors say it’s hard to find a wrong time for them. “I personally don’t believe that anyone can determine the exact [market] bottom or any other perfect time to convert,” said Chad Baxter of Credent Wealth Management in Cincinnati, Ohio.
Don’t wait for the market to go lower, he said, or feel remorse if you think you missed the ideal moment. Instead, he said, focus on “the potential value created by the action that was taken [and] avoid hindsight bias. Any positive action still provides value.”
Are your advisory clients afraid that money will ruin their children?
If so, you’re not alone.
One of the most common concerns, Jordan McFarland, certified financial planner at SageSpring Wealth Partners, hears from his wealthier clients is that significant wealth could leave their children feeling entitled, lacking the drive or resilience that the parents themselves had to develop.
That’s because many of his clients grew up with fewer resources and believe that working for their success instilled values they fear could be lost if their children simply inherit wealth without understanding the effort behind it.
Along similar lines, James Diver, partner at Procyon Partners, said many of his high-net-worth clients are concerned the significant wealth they have accumulated could give their children a lack of drive and ambition. They worry that, without the proper values about money, they could end up thinking the wealth created is there to replace what they can do, rather than support it.
“I have helped a client who was worried that sudden wealth would negatively affect their child’s own career and success. They wanted them to be accountable and responsible about their own finances before they received significant sums of money in trusts,” Diver said.
Ideally, SageSpring’s McFarland believes the best approach is to have a joint meeting with the client and their son or daughter to open communication and set expectations. That said, he fully understands that’s not always practical.
“In most cases, we help by educating clients about their options for passing down wealth, how different account types work, the tax ramifications both today and upon inheritance, and how thoughtful estate planning can offer the level of control they want over their assets. We design structures that reflect the parents’ wishes, aiming to pass down both assets and responsibility,” McFarland said.
Emphasized McFarland: “Education is the foundation for developing financial responsibility, no matter someone’s age.”
For his part, Diver encourages clients to have their children reach out and engage him for financial planning conversations that are tailored to a young investor or mid-career individual. He also provides “milestone financial education” for certain ages.
“I make sure our clients are aware of the information we are sending their children as well so that the information does not just sit in a child’s inbox or folder. For families that want their children to be more involved, I provide them with frequent educational material and schedule one on one zoom calls to speak to them about their finances,” Diver added.
McFarland also encourages clients to involve their children in activities that reflect their family values, such as participating in annual charitable giving. To further this idea, he hosts webinars and educational sessions where wealth isn’t the focus, so kids can engage without immediately being exposed to net-worth figures.
Over time, he gets more specific, helping families think through how different portions of wealth might be designated according to the individual traits and readiness of each child.
Meanwhile, Diver helps clients create family vison statements that align their financial plans, trust structures, and estate plans with their broader values and goals for continuing their family legacies. In his view, the psychological and emotional aspects of wealth and the purpose behind the dollars and cents is important to discuss in family meetings.
“A lot of these conversations can be discussed without bringing up specific dollar values and potential inheritances. Financial goals can also be tied to lifestyle milestones like completing education, starting a business or being philanthropic,” Diver said.
“One of the benefits of working with our team is our ability to serve multiple generations at once,” McFarland said. “We often help children of our clients get started with early, tax-efficient retirement planning, setting a strong financial foundation.”
When business ownership is involved, it introduces additional layers of complexity, as succession planning becomes crucial, according to McFarland. In those cases, he assists with structuring transitions that are “smooth, tax-efficient, and aligned with the family’s long-term goals.”
Procyon’s Diver admits that advising multiple generations is one of the “toughest aspects” of advising a family with significant wealth. A balanced and thoughtful approach makes the process much more digestible for the multiple generations in his opinion.
“Tailoring each meeting to focus on different family members concerns helps keep the conversations moving in a positive direction. Creating meeting agendas and defining the objectives helps keep multiple family members engaged and focused,” Diver said.
Procyon Partners is honing in on its first deals following Constellation Wealth Partners taking a minority stake in the firm earlier this month, with one large RIA acquisition set to close by the end of the second quarter, and potentially another on its heels.
In an interview with WealthManagement.com, Procyon CEO and co-founder Phil Fiore detailed the firm’s goals in the wake of Constellation’s investment, saying the RIA intends to complete several transactions per year, earning cumulative M&A revenue between $8 and $20 million. According to Fiore, the firm would focus on firms with assets under management totaling between $300 million and $3 billion.
“But they have to be the right ones,” Fiore said.
The $8 billion Procyon Partners is based in Connecticut and part of the Dynasty Financial Partners network. Fiore co-founded the firm in 2017 after building prominent institutional consulting groups at Merrill Lynch and UBS. Earlier this month, Procyon announced Constellation’s stake, with Fiore calling it a “transformative moment” for the business.
The capital from Constellation, a private equity firm founded by former Emigrant Partners CEO Karl Heckenberg, will help Procyon expand its talent pool and open new offices nationwide. Procyon will remain independently operated, which Fiore said was of paramount importance and limited the number of offers the firm received when it began seeking partners.
According to Fiore, the concept of a “strategic capital and thinking partner” was in Proycon’s business plan by year three, but the firm opted to meet with several private equity firms over several years to better understand what the PE space could offer it.
Eventually, Procyon partnered with Houlihan Lokey to act as the firm’s investment banking advisor in the search. Last October, the firm sent out a confidential information memorandum to about 40 potential investment partners, getting 17 offers back and eventually meeting with five.
“The only reason why we didn’t get 40 back, quite frankly, is because of the size of the check. We didn’t want to sell a significant portion of the firm,” Fiore said. “It was always minority and always non-controlling.”
According to Fiore, Procyon didn’t pursue a minority investment from their back-office support partner Dynasty because “it’s really important, at some level, to have separation of church and state” (Fiore said the firm utilizes two custodians in Fidelity and Charles Schwab for the same reason).
While every potential PE partner promised capital and M&A deal flow proficiency, Fiore said Constellation’s differentiator was its advisory subset led by Lisa Crafford, Constellation’s managing director and head of advisory, who joined the firm from Pershing in 2023.
Fiore said Crafford and other Constellation staff spent three days last week at Procyon conducting a deep dive and assessment of the firm, and intend to return in several weeks with a list of suggestions.
“So there’s a whole strategic consulting element relative to our infrastructure and our processes and how we’re doing things, how we’re executing and how we can be better,” Fiore said. “How do we fine-tune that? How do we make the Rolls-Royce even better?”
Fiore expected Procyon’s acquisitions in the months (and years) to come would be a mixture of expanding existing offices and planting flags in new cities and regions, citing Michigan; Columbus, Ohio; Chicago; and the state of Tennessee as potential locales. Particularly, Fiore found between the Mississippi River and the East Coast’s I-95 corridor to be fertile ground for a firm like Procyon.
“I just think as we start to go over the Mississippi and to that side of the country, we’ve just got to be thoughtful about making sure we build a larger complex,” he said. “If we’re going to hang a flag on that side of the Mississippi, we’re going to hang a real flag; I’m going to want to see $10 to $15 million in revenue out there.”
Fiore also acknowledged the difficulty of M&A at Procyon, which will likely limit the firm’s deal volume. He recalled how, 18 months after the firm’s launch, Procyon considered acquiring an unnamed large team that wanted to retain their own branding and create an affiliate relationship with Procyon.
Fiore and his team opted not to make the deal, setting in stone the idea that firms would only join Procyon under the guise of being part of a single team, which Fiore acknowledged would not be for everyone.
“That business card is the same one I have,” he said. “It’s no different.”
A Connecticut RIA has accepted minority investment from Karl Heckenberg’s Constellation Wealth Capital.
Procyon Partners, an $8bn RIA, said Thursday that the deal with serial RIA investor Constellation will allow the firm to scale its operations and facilitate hiring.
Sources told Citywire in December that Procyon was in the market for a minority investor. Citywire also reported last month that Constellation Wealth Capital and Rise Growth Partners were in talks to invest in the RIA.
In seeking an investor, Procyon co-founder and chief executive Phil Fiore said he wanted help with strategic planning, including for future M&A. Fiore said his firm plans to acquire independent RIAs and pursue wirehouse liftouts.
‘Having a strategic thinker by our side who has been there done that, to have that sounding board when thinking about our evolution, is immensely important for us,’ Fiore said. ‘A lot of this is making sure we have capital to go out there and do really good deals.’
He said Procyon already has a few deals in the works, with a focus on expanding on the East Coast in the near term. Speaking further about his plans, Fiore said he hopes to bring services like accounting and insurance in-house, possibly via acquisition.
Procyon told the Securities and Exchange Commission (SEC) in a March filing that it counts more than 1,200 individuals as clients. Procyon also serves pension plans and businesses. The RIA reported a presence in New York City, Melville, N.Y. and Fulton, Md. According to Fiore, the firm has 60 employees and 13 partners.
The Shelton, Conn., RIA was launched in 2017 when Fiore and four other founding partners broke away from wirehouse UBS, where they had overseen more than $400m in wealth assets and $8bn for institutional clients. Dynasty Financial Partners supported their move and has provided the RIA with technology, compliance and other services ever since.
In a phone call, Fiore said he expects things to remain ‘business as usual’ with Dynasty.
‘We are excited to support Procyon Partners’ vision and momentum,’ Heckenberg, president and managing partner of Constellation, stated. ‘Their team has built a compelling, advisor-driven business with a clear growth trajectory.’
Heckenberg, who previously ran RIA investor Emigrant Partners, launched Constellation in late 2023, unveiling plans to take non-controlling investments in large and mid-sized RIAs. Constellation has invested in a handful of RIAs, including Lido Advisors, Perigon Wealth Management and Cresset.
Constellation closed a $1bn capital raise in December, with contributions from undisclosed insurance firms, endowments, foundations, asset managers and family offices.
Houlihan Lokey advised Procyon Partners on the deal. Dynasty said its investment bank also provided assistance.
For RIAs to succeed in the next decade, panelists and attendees of RIA Edge Nashville point to professional businesses that offer recruits a chance to focus on clients.
Wealth management still may not be as sexy as investment banking, but the shift away from the days of cold calling and portfolio management has the potential to make it more attractive, according to panelists and attendees at RIA Edge Nashville.
Arthur Ambarik, CEO of Perigon Wealth Management, noted how the financial advisor role is moving away from drumming up clients and managing assets.
“In the future, one of the things that will make advising more attractive to young folks is that they won’t have to be salespeople, necessarily,” he said. “They won’t have to be these rainmakers. They won’t have to be asset managers. They will be trusted professionals who provide holistic financial advice to people. That, I think, is the big change.”
The shift has been spurred by more fee-based advice and technological advancements in investment management and client work. According to Ambarik, that results in an increasingly professionalized structure for the next generation of advisors.
San Francisco-based Perigon has been working on its structure with input from Constellation Wealth Capital, which took a minority stake in the firm in January 2024. Constellation’s Lisa Crafford, managing director and head of advisory, was on stage with Ambarik on Wednesday and noted that the increased professionalism of RIAs provides further opportunities for employees.
“The breadth of opportunities inside the firm changes,” she said. “Now we look across the spectrum of roles, and we hear titles like chief of staff, president, director of marketing, CMO and CTO.”
On the sidelines of the conference, Phil Fiore, co-founder and CEO of Procyon, stressed his firm’s focus on creating dedicated teams across investment management, tax planning, trusts and estates, and even employee benefits so advisors can focus on their clients.
“The conversation with my FAs is, ‘what’s your best value?’” he said. “Is it really inputting financial plans at night and thinking about it while you’re putting your babies to bed? Or is it spending that quality time with clients with a deliverable that comes from people who are working all day, every day, on financial plans and investments and such.”
Procyon launched in 2017 as a Dynasty Financial Partners firm with about $2 billion in assets under management. Today, it has close to $9 billion in assets, and Fiore attributes much of its organic success to that operationalized structure.
“When we bring a family in, what I want my FA’s to do is to bring in some of the other department specialists that yield to a much larger bench,” he said. “The FA is the coach that brings in all these specialists at any given time, depending on their situation. We are winning business like that versus having our FA being the parrot of all of it.”
Constellation Wealth’s Crafford discussed the importance of creating an organizational chart for large RIAs serious about growth.
The chart “tells the story of where you are today and the organization’s functionality, but also where the organization is going,” she said. “That professionalization around having that mapped out for today, for next year, for five years from now and weaving that in with performance reviews really kind of elevates everybody from the most junior person on your phone to the most senior.”
Ambarik also sees a future when advisor compensation is less tied to the eat-what-you-kill model, which can mean starting out with a lower salary than other jobs in finance.
“The compensation package of the future for advisors, if we’re attracting these kinds of young, talented people, is a combination of base salary, incentive compensation and equity,” he said. “That incentive may be tied to the growth of the business, but it’s not going to eat what you kill, go out and call your friends and family and that kind of thing. That’s not going to attract young talent.”
Crafford advised the audience to seek interns and connections with the over 200 Certified Financial Planner programs nationwide.
“If you haven’t gone to spend half a day at the CFP program, you are really missing out,” she said. “They can’t visualize and don’t understand what a day in life looks like for you. They think you walk into a room and there are 16 monitors tracking the stock market …. you guys in the audience are the ones that should be teaching them.”
Financial advisory clients increasingly want “proactivity,” according to a new study. In other words, they want their wealth managers to anticipate their needs in advance.
Unfortunately, the study also shows a pretty substantial gap between the proactivity they want and what they are currently getting.
A new market intelligence report by financial data and benchmarking firm Hearts & Wallets revealed that the importance rose 3 percentage points from last year’s survey for being “proactive when the market changes/when I’m losing money,” as well as offering personal finance advice, investment selection advice, good mobile apps, and fee clarity.
Proactivity, one of the top-growing “wants” of clients, also proved to be the biggest satisfaction gap. The report showed 45 percent of households nationally rate proactivity as highly important, but only 32 percent of customers report high satisfaction, resulting in a gap of 13 percentage points.
The report also showed Ameriprise (Ticker: AMP), Edward Jones, LPL Financial (Ticker: LPLA), Morgan Stanley (Ticker: MS), and Wells Fargo Advisors (Ticker: WFC) achieved Hearts & Wallets “top performer” designations on five or more wants. Meanwhile, Charles Schwab, Fidelity, Merrill (Ticker: BAC), T Rowe Price (Ticker: TROW), USAA, and Vanguard were listed as top performers on one to two top wants.
To earn that top performer designation, a firm must receive satisfaction ratings from their customers that are distinctively higher than the national average, according to Hearts & Wallets.
As to how advisors can improve their proactivity, Tom Burmeister, vice president of strategic product solutions at Conquest Planning, suggests using solution-oriented, positively framed alerts that not only inform clients when their financial goals are off track but also make them aware that actionable strategies are available.
“By leveraging tactical and knowledge-driven notifications, advisors can close the satisfaction gap by demonstrating expertise and initiative, rather than placing the burden on clients to seek solutions themselves,” Burmeister said. “A well-designed mobile and digital experience that delivers personalized, opportunity-focused insights ensures clients feel supported, engaged, and motivated to take action.”
For Christopher P. Davis, partner at Hudson Value Partners, it’s about working proactively with a client’s attorney and tax professional behind the scenes to deliver advice on the “total picture.”
“If you are the relationship quarterback, your firm needs to take the lead and not only develop the financial plan but implement it,” Davis said.
The top reason clients leave financial advisors is because of the lack of proactive communication, according to Arnulf Hsu, CEO and founder at GReminders. Timely outreach, focused on life events that involve milestones in their financial lives, are key to client retention.
“And now technology, especially as it is augmented by AI, can initiate a dialogue for all of these events and more that would have otherwise not happened, strengthening the advisor-client relationship,” Hsu said.
Speaking of proactive technology, Amanda Butler, chief technology officer at Nepsis, developed an app early on that allows clients to easily access the information they need. And she continues to evolve the app to create a more user-friendly and seamless experience.
Beyond the app, she guides clients through a comprehensive process beginning with a clarity assessment survey and includes multiple steps and conversations to ensure clients gain a thorough understanding of their financial picture.
“This process highlights how we can support them in various areas, including wealth management, financial planning, tax services, and estate planning,” Butler said. “Our clarity assessment offers clients one of the most robust views of potential gaps in their financial lives both business and personal, even before they engage in formal tax or financial planning with us.”
Along similar lines, Kate Atwood, founder and president at Founders Grove, uses technology tools to implement a customized planning and service model, which enables her to anticipate her clients’ needs and provide timely communication. For example, her client service calendar guides her throughout the year to proactively assist with financial deadlines, such as tax filing, Medicare enrollment, and quarterly tax payments.
“We ensure everything is in place beforehand,” Atwood said. “When clients call asking for a distribution for their upcoming trip, we can happily share that the funds are available and ready to be transferred. We do not take lightly the trust our clients have instilled in us, and our service model reflects our dedication.”
Finally, Bob Alimena, private wealth advisor at Procyon, anticipates his clients’ needs by providing monthly commentaries on topical issues, as well as quarterly summaries of market activity and his outlook.
“Internally, we have a very robust client service system,” Alimena said. “This ensures that we are tracking our most recent conversations and follow up items but also kicking off a regular cadence of client outreach, whether it be a ‘touch base’ from our service team or a financial planning or investment review with the client’s primary advisor.”
Looking for something special to do with your one and only this Valentine’s Day? Perhaps an activity that shows how much you want your relationship to last, not just emotionally, but financially as well?
How about sharing a “money mimosa”? Or what about a cozy afternoon mixing “coffee, cash, and credit”?
Those are just a few of the ideas Caroline Wetzel, private wealth advisor at Procyon, recommends to clients wishing to express their “financial love” to each other. In her view financial planning done right provides couples a “safe space to be vulnerable, express themselves, and grow individually and together.” She adds that frank financial discussions also enable couples to deepen their relationship through conversations about their needs, wants, and wishes.
And they also provide a flexible framework for making financial goals reality, like another one of Wetzel’s favorites: The “travel transfer.”
“Introduce automated monthly savings and make paying for travel a fun challenge that brings you together,” Wetzel said. “Keep a map on your fridge illustrating where you want to travel along with when you want to go there. Set and stick to a regular savings plan to build funds to pay for your trips.”
Added Wetzel: “And each trip you take make it a game to see how many deals you can apply to minimize costs and maximize fun, like applying airline miles, membership rewards points, and hotel discounts!”
Budget simulations are another creative way for couples to show their devotion to each other, according to Peter Halbrook, advisor at TritonPoint Wealth. And his firm has the AI technology to get folks in the mood.
“Couples always enjoy running various what-if scenarios, especially when it has to do with shared discretionary goals like vacations, buying that second home, early retirement, or perhaps gifting to the grandkids or favorite charity,” Halbrook said.
One of the most common reasons for divorce is money. That’s why Halbrook believes that by planning early together and being open with one another, couples will have a better chance of avoiding common “money problems” that often detract from having a healthy and harmonious relationship.
“In my opinion, the planning process is almost like therapy,” Halbrook said. “Talking is good and when couples openly engage in the planning process together it always leads to meaningful conversation and a better outcome.”
Along with coaxing communication, budgeting can also be a stress reliever, believe it or not. Just ask Matt Liebman, founding partner and CEO of Amplius Wealth Advisors.
“Financial matters are one of the key drivers of stress in individuals and couples. Conversations and open communication can remove stress. Removing stress can lead to healthier relationships,” Liebman said, adding that travel, events, and experiences are often “more impactful and memorable financial expenditures than material goods.”
(Of course, gold is up over 40 percent in the past 12 months. So maybe that’s not such a bad gift too. Financially speaking of course.)
Along those lines, a study released last summer showed that the more financial stress people are experiencing, the less likely they are to speak with their partner, perhaps exacerbating an already challenging situation and potentially exposing the partner to risk.
Emily Garbinsky, associate professor in the Samuel Curtis Johnson Graduate School of Management, co-authored the paper with Suzanne Shu, professor in the Charles H. Dyson School of Applied Economics and Management, and Nirajana Mishra, a postdoctoral associate at Yale University.
They found that a staggering 70 percent of participants in their study said they are or have been affected by financial stress, typically from being overwhelmed by spending, unable to meet their financial obligations, or being concerned about money management.