Evaluating targets: growth, diversification, demographics

Wealthcare Capital Management’s evolution from a software pioneer to a national advisory platform reveals the power of strategic reinvention.

In this episode of the RIA Edge Podcast, host David Armstrong speaks with Matt Regan, president and CEO of Wealthcare Capital Management, about Wealthcare’s journey from its roots in Richmond, Va., to its sale to Sammons Financial. Matt shares how the firm is blending technology, M&A strategy and advisor support to create growth opportunities for independent advisors nationwide.

Matt and David also discuss the firm’s acquisition approach, the rise of supported independence and the ongoing transformation of the RIA space.

Matt discusses:

• Wealthcare’s beginnings as an investment planning software firm and its evolution into a full-service wealth management enterprise with some 200 affiliated advisors and $10 billion in AUM.
• The recent transaction, which saw ownership of the firm move from private equity investors NewSpring Capital to employee-owned Sammons Financial, a mid-sized financial services firm, and the potential to set up an independent wealth management vertical inside that organization.
• Why Wealthcare still purposefully targets sub-$1 billion firms for acquisitions, and how the war for talent, particularly next-gen, is feeding into Wealthcare’s dealmaking roadmap. (In fact, Wealthcare’s advisors are, overall, younger than the industry average.) 
• Why the firm has a goal to move more affiliated advisors, largely 1099 employees, into Wealthcare’s W-2 channel.
• Regan’s view on most of the digital marketing platforms currently available to advisors, and how AI may be the answer to truly move the needle on organic growth via improved lead generation and prospect nurturing.
• Why Regan is looking for an AI-enhanced small account investment platform for advisors to offer younger prospects who don’t—yet—make profitable full-service clients. 

Resources:

• Listen to the RIA Edge Podcast on WealthManagement.com
• Listen and Subscribe to the RIA Edge Podcast on Apple Podcasts
• Listen and Subscribe to the RIA Edge Podcast on Spotify

Connect With David Armstrong:

• WealthManagement.com
• LinkedIn: WealthManagement.com
• LinkedIn: David Armstrong
• Twitter: David Armstrong
• LinkedIn: Informa

Connect With Matt Regan:

• Wealthcare
• LinkedIn: Wealthcare
• LinkedIn: Matt Regan

About Our Guest:

Matt Regan serves as Wealthcare’s President. Most recently and prior to Wealthcare, Matt served as the Chief Operating Officer of Wescott Financial, a $2 billion RIA based in Philadelphia. With more than two decades in the financial services industry, Matt has been involved in a number of transformative business models and has remained focused on building world-class organizations with a focus on the client. As a founding partner of WR Hambrecht+Co, Matt launched the retail brokerage offering and helped to design and launch the auction-based OpenIPO system. As a consultant to Vanguard, Matt was involved in the technology and business transformation that created the infrastructure that underlies the firm’s Personal Advisor Services offering. Matt is a graduate of the University of Toronto and resides outside Philadelphia with his wife and three children.