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Kestra CEO James Poer wants to set the record straight on private equity

19:13 01 December in In the News by rafferty

November 19, 2018 By Tobias Salinger, Financial Planning The wealth management industry has a misunderstanding about private equity, according to Kestra Financial CEO James Poer. “Private equity’s not evil. Private equity’s just an investor,” he said in an hour-long interview at the Stone Point Capital-backed independent broker-dealer’s headquarters in Austin, Texas. “It’s that simple.” Poer bristles at suggestions that PE ownership acts as a downside for the 2,300 advisors at Kestra and subsidiaries Kestra Private Wealth Services and H. Beck. He also takes exception with the notion that the firm has not been active in acquisitions this year or that it should be recruiting new advisors en masse. However, some of the firm’s rivals have been boosting their advisory ranks through recruiting and acquisitions. In one of its recent recruiting campaigns, LPL Financial called PE owners...

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The Dangers of Private Equity to Broker-Dealers and the Financial System

19:15 16 October in Articles Written by Jon Henschen by rafferty

October 15, 2018 By Jon Henschen, ThinkAdvisor Private equity firms continue to have substantial involvement in the independent channel as they fill the void left by insurance companies exiting the broker-dealer universe. Private-equity ownership can bring benefits to the advisor, but we also see moves by PE firms that are detrimental to the interests of broker-dealers’ advisors. Why are institutional investors attracted to private equity, and what lies ahead? Here’s what’s happened with private equity ownership, past and present: Past Private Equity Success As the chart shows, LPL is the only private-equity owned firm to go public, with management and larger producing advisors making millions from selling their stock ownership. For all the other PE-owned BDs, divesting was the exit strategy. NFP stood out as a particularly positive case of PE ownership, as staffing remained robust and...