What is Redwood Advisor Services?
Redwood is a comprehensive platform delivering all-inclusive consulting services and turnkey business solutions that supports an advisor in building and running a Registered Investment Advisory (RIA) firm. You maintain 100% ownership and control. It’s just that simple.
What makes Redwood unique from other firms in this space (i.e., Strategic Acquirers, Roll-Ups, Independent Broker-Dealers, Wire-houses, Limited Partnership Models, Private Equity Firms)?
Most of these models build their enterprise value through equity in an advisor's business or book of clients. As a non-equity service provider, Redwood is different. Similar to the fiduciary model RIA firms have with their clients, Redwood only makes money through a fee-based relationship with RIAs. You maintain complete control and 100% ownership of your business.
What do I need to know about owning a Registered Investment Advisory (RIA) Firm?
As a business owner, you have the freedom to make decisions related to all aspects of your business, including branding, marketing, technology, investment, growth strategies and succession. However, sometimes the attractiveness of being a business owner is outweighed by the time commitment and legal considerations. That’s why advisors partner with Redwood. Our expert consultants help advisors avoid pitfalls and assist them in making decisions best suited for their firm and most importantly, their clients.
How long will it take to set up my business?
Typically, from the time that Redwood is hired to launch date is about 2–4 months, though each business is unique and the timeline depends on several factors. Your Redwood team will create a personalized transition timeline based on your needs, identifying all key decisions, eliminating surprises and ensuring adequate time is given to each phase.
How long will it take to transition my clients?
On average, RIAs transition about 80% of their books within the first 2–3 months with another 15% transferring in months 3–6. Preparation is key to a successful transition. Your Redwood team will create a comprehensive client conversion plan, including asset and account type reviews, segmentation and communication strategies, pre-population of paperwork and ways to leverage new technology such as e-signature and DocuSign®.
Can I keep my commission-based business?
Yes. You have the independence to pursue both fee-based and commission-based business.
What technology is available to me as an RIA?
It’s your choice: utilize the Redwood platform or select another technology solution that meets your needs. The Redwood platform is ideal for firms desiring a simple, integrated solution that covers basic needs like CRM, portfolio reporting and document management. If your firm has unique needs, Redwood's consultants can help you understand third-party solutions and assist you in choosing the right tech solution.
My Branch Manager has been telling me for years that setting up my own firm is a mistake. Is this misguided?
If you are good at what you do, your current firm does not want to lose you. Take it as a compliment that they are emphasizing the negative perceptions about advisors who make a change and set up their own firm. When talking to advisors who have made this transition, the most common sentiment is a wish they had done it sooner. Once advisors leave the captive wire-house world, they rarely go back.