With trillions of dollars set to transfer from aging baby boomers to younger generations, a new registered investment advisor firm is launching with an eye toward helping extravagantly wealthy families manage that transition.
Alvarez & Marsal Private Wealth Partners is launching under the aegis of Alvarez & Marsal Inc., an affiliate of the eponymous global consulting firm Alvarez & Marsal Holdings.
Peter Sacripanti, chairman of the new RIA, looks to the generational wealth transfer estimated in the range of $70 to $80 trillion and sees a substantial niche for AMPWP.
“I would say 15% to 18% of that—so $10 to $15 trillion—is privately owned companies that will have some sort of liquidation event and need help transitioning that wealth from one generation to another,” he says. “Alvarez & Marsal has the perfect pedigree to help those people do that.”
The parent company, founded in 1983, has extensive expertise in advising on complex corporate finance issues such as sales, bankruptcies, and restructurings, offering a deep well of expertise for an RIA focused on families navigating similar situations.
“Our thought was that we wanted to serve as a large family office for ultrahigh-net-worth individuals, because not every high-net-worth individual is going to be able to have 40, 50 people in their family office across different verticals and different disciplines,” Sacripanti says.
Our thought was that we wanted to serve as a large family office for ultrahigh-net-worth individuals, because not every high-net-worth individual is going to be able to have 40, 50 people in their family office across different verticals and different disciplines.
He says the client base that AMPWP is in the early stages of onboarding is “varied” and with different levels of liquidity, but many of them have a substantial portion of their assets tied up in a private business. “We know there is an underserved community of these illiquid assets that are privately owned by these entrepreneurs,” Sacripanti says. That specialization comes on top of the traditional wealth management and financial-planning services that the firm will offer.
AMPWP is launching with its headquarters in West Palm Beach, Fla., and offices in New York City, Los Angeles, and Atlanta.
The firm registered with the Securities and Exchange Commission in June but only recently began bringing on clients. In a regulatory filing earlier this month, AMPWP reported a little more than $100 million in assets under management. Michael Calkin, the firm’s practice lead, says that figure will likely be in the $2 billion to $3 billion range when AMPWP updates its Form ADV early next year.
The firm expects that typical clients will have assets in the range of $50 million to $100 million or more.
Sacripanti, a lawyer by training, has spent decades advising Fortune 500 companies, CEOs, and wealthy individuals. He also served as chairman of McDermott Will & Emery, a leading global law firm.
Calkin has been working in the ultrahigh-net-worth space for two decades as a portfolio manager, family office executive, and private banker during stints at J.P. Morgan Securities, Citi Private Bank, and most recently a brief stop at Deutsche Bank, according to the online database BrokerCheck.
Sacripanti notes that in its consulting work, A&M has historically acted as a fiduciary to its clients, and the new RIA is bringing that same ethos to wealth management, calling it a “natural progression.” Also, he says the firm will sell no proprietary products. “It’s hard to be a fiduciary if I’m getting paid to sell you some sort of fund,” he says.
AMPWP’s principals are cool on the idea of expanding the firm by snapping up other RIAs. In part, that is because they see few other firms occupying the position they are attempting to stake out in the industry, but they also say they aren’t inclined to join in the asset grab that has been a defining feature of the RIA space.
When you grow by acquisition, the culture of that firm can be changed and diluted. We’re not going to grow just for the sake of growth.
AMPWP also positions itself as an outlier in the field because its funding through its affiliated corporate backer frees it from the short-term pressures that confront many leading firms in the industry, whether that is the wealth arms of large banks or the RIAs that must answer to the revenue and growth expectations of their private-equity backers.
“If you look at banks that are in this business, they’ve got to report to the Street—they’re publicly traded,” Sacripanti says. “If you look at the PE firms that are in the space, obviously they’re maximizing, and they’re looking for an exit. We have no such reporting obligations to the Street, we have no such exit plans. We’re in it for the long haul.”
About Alvarez & Marsal Private Wealth Partners
A&M Private Wealth Partners (AMPWP) will operate as an independent affiliate of Alvarez & Marsal, a leading global professional services firm that provides advisory, business performance improvement and turnaround management services since 1983. Established to address the unique needs of ultra-high-net-worth clients, AMPWP delivers comprehensive wealth management solutions, including investment advice, wealth planning, and family office services. Drawing on A&M’s extensive expertise in tax strategy, corporate transactions, and private equity advisory, AMPWP is committed to providing tailored, client-centric strategies that enhance wealth preservation and support the long-term objectives of families and financial sponsors. For additional information, please visit the A&M Private Wealth Partners website at www.ampwp.com.
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