Sanctuary Publicizes Inaugural Deal in Partnership Program

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Sanctuary Wealth, a help platform for breakaway advisors, introduced a brand new partnership program, a three way partnership with affiliated companies Concenture Wealth Administration and G Squared Personal Wealth, which have places of work in Houston, Faculty Station and Galveston, Texas. Sanctuary has taken minority stakes in these companies and helped them create an entity referred to as 6 Levels with the intention that the companies launch an acquisition technique within the Southwest.

Jim Dickson, CEO and founding father of Sanctuary Wealth, stated that is the primary of many transactions his agency will do with accomplice companies, the place Sanctuary will co-invest alongside companions in order that they’ll do M&A themselves. Dickson predicts Sanctuary will do 15 to twenty of those partnership offers per yr.

“One of many challenges to doing M&A is the capital,” Dickson stated. “As a result of they’re a part of our community and we personal a minority stake, this permits them a a lot simpler path to take part within the M&An area by doing it with us.”

6 Levels, which operates below Sanctuary’s registered funding advisor and dealer/seller, is led by CEO George Georgiades, Chief Funding Officer Victoria Greene and President Robert Gilliland.

“Our aim in creating 6 Levels is to provide particular person advisors the pricing and synergies of a nationwide agency however with native management to assist them reside the life and develop the enterprise the best way they need to,” stated Georgiades, in an announcement. “We purpose to convey accessibility, funding acumen, expertise with various kinds of shoppers, and the teachings we realized in making our personal transfer to independence.”

Jason Hardcastle, previously an advisor with Edward Jones, is the primary advisor to affix 6 Levels, and shall be based mostly in Galveston.

Sanctuary’s preliminary development technique was to construct a community of breakaways; it presently has about 50 companies within the community, and that channel continues to be rising. Then in late 2020, it raised $50 million via European-based asset supervisor Azimut Group, which took a majority stake within the agency, for M&A. The agency began buying RIAs itself as a technique to develop the community; Sanctuary accomplished three of these offers final yr, and the agency expects to announce one other three within the subsequent 60 days. 

This partnership program, which Sanctuary has been engaged on for the final yr, is a 3rd development technique; it permits accomplice companies to make use of Sanctuary’s capital to leverage their relationships on an area degree and do tuck-ins and acquisitions.

“If you concentrate on our mannequin, they historically break free from a wirehouse, they arrange their very own unbiased observe, we then take a minority stake all the time in that observe, after which collectively we exit and do M&A with a few of their relationships and our capital,” Dickson stated. “We’ve acquired these nice companions—60 of them throughout america and Latin America; they’ve acquired nice reputations; they’ve acquired nice relationships. So once we sat down and we talked about our development technique, we stated, ‘Why wouldn’t we leverage that?’”

Sanctuary has accomplice companies throughout 22 states with over $19 billion in belongings below advisement. 

“Now, versus doing 5 offers a yr, we will do much more as a result of we’ve acquired boots on the bottom throughout the nation that we’re doing offers with that enables us we expect develop somewhat sooner,” Dickson stated.

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