Platinum Wealth Partners plans 2013 as breakout

Slates offices in five or six new cities, targets wirehouse reps

Dec 20, 2012 @ 11:46 am

By Dan Jamieson

A new consolidator, Platinum Wealth Partners Inc., plans to open offices in five to six new cities next year with the help of a $1.5 million to $2 million private bond offering.

As part of its growth plans, the firm on Wednesday also announced a new equity participation plan for its advisers.

The Tampa, Fla.-based firm, quietly started two years ago by managing partner Dave Potter, a former executive in Canada with Raymond James Financial Services Inc. and TD Securities Inc., already has 15 advisers in five offices — two in Tampa and one each in Miami, St. Petersburg, Fla., and Boston.

Those offices have served as a “beta test” for his concept of building out wirehouse-like office space for small groups of breakaways who work as independent contractors, Mr. Potter said.

“We're typically in the same buildings where wirehouses exist, so all the adviser has to do is move to different floor,” he said.

The plan is to open up to six new offices in the first half of 2013, Mr. Potter said. He is considering locations in Orlando and Boca Raton, Fla., Atlanta, Scottsdale, Ariz., California's Orange County and the New York City area.

Mr. Potter said he has about 15 more recruits in the pipeline.

Platinum offices are designed to accommodate up to six advisers and two support staff members.

His firm targets wirehouse reps in the $250,000 to $600,000 production range.

Platinum uses Fidelity Institutional Wealth Services as a custodian and LaSalle St. Securities LLC, which clears through Fidelity's National Financial Services LLC, for its securities business.

Next month, Platinum plans to raise $1.5 million to $2 million in a private bond offering to finance recruitment packages for new recruits.

“We replace [a recruit's] first year cash flow” with a transition loan, Mr. Potter said.

The new equity participation plan for recruits and advisers will offer equity equal to 20% of an adviser's annual production at the time they join the firm. The plan has a five-year vesting period.

Mr. Potter said he's been purposefully keeping a low profile.

“We've been quiet so far because we've been fine-tuning the system,” Mr. Potter said.

But next year should be a “breakout” year for Platinum, he added.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Schwab's Clark: How next-gen can position themselves for success

How can the next generation position themselves for success in the industry? Our student correspondent from Texas Tech, speaks with Bernie Clark to find out.

Latest news & opinion

Nontraded BDC sales in worst year since 2010

The illiquid product's three-year decline is partially due to new regulations and poor performance.

Tax reform debate sparks fresh interest in donor-advised funds

Schwab reports new accounts up 50% from last year, assets up 33%.

Nontraded REITs to post worst sales since 2002

The industry is on track to raise just $4.4 billion, well off the $19.6 billion it raised just four years ago, as new regulations hinder sales.

Broker protocol for recruiting a boon for clients

New research finds advisers whose firms have joined the agreement take better care of customers.

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print