Well I know what we’ll be investing in next! 5% commission coming my way 😄

I get notes like this all the time and it tells you everything you need to know about how parts of this industry still operate.

You want to work with fiduciaries who are not compensated based on what products they put your money in.

The reason independent fiduciary firms are growing so quickly is because clients want transparency with no product conflicts.

If someone tells you their model is better because of “exclusive deal flow,” take a step back.

The top private equity managers in the world are the ones with the actual deal flow you want.

So what are you really being offered?

An investment that:
Blackstone, Ares, KKR, Apollo, Partners Group, Thoma Bravo, and Carlyle all passed on…

…and you’re paying a 5% commission to access it?

Give me a break.

And yes, there are great opportunities in smaller, niche deals.

But the best of those are run by specialist managers, not distributed through commission-driven channels.

Maybe it’s because I worked at PIMCO and saw just how much smarter portfolio managers at asset management firms are than any advisor or investment analyst at a wealth management firm that I have this view.

What I’ve tried to build instead is simple:

Partner with the best managers in the world, across both large-scale and niche strategies, and as you grow with them you can add value to your clients through:

• Lower fees as AUM scales
• Lower fees on initial closes of new funds
• Co-investment opportunities at little-to-no fees

I’ll stick to the tax planning and overarching portfolio construction, but leave the sourcing/operating to the people that are 10x smarter than I am.