Helping advisors "break through the glass ceiling"

In the crowded RIA industry, many aggregators are competing for the same high-performing teams. Having a unique focus, therefore, is paramount to success. At NewEdge Advisors, the New Orleans-based firm formed in October 2021, the key was determining the guiding philosophy.

"I think our success largely stems from our focus, which is not to be everything to everybody but to provide solutions and services for high-performing advisors who have already achieved a high degree of success,” says Neil Turner, co-CEO of NewEdge Advisors. “[It’s about] helping them break through the glass ceiling.”

Turner co-leads the RIA with Alex Goss, an experienced wealth manager who helped build Goss Advisors, which was incorporated into the launch of NewEdge Advisors.

The firm’s philosophy sharply contrasts with that of many RIAs, which, according to Turner, emphasize how the firm’s value can unlock growth potential for financial advisors. NewEdge flips the script.

“Our differentiation is that the financial advisor is the one who’s special,” adds Turner. “And everything that we do, all the services we provide, are meant to unlock their ability – not to give them solutions that they may already have within their teams.”

This approach is not just a marketing tagline, but a foundational principle that shapes every aspect of NewEdge’s operations. The firm’s focus on organic growth and efficiency has not only attracted successful advisors but has also presented challenges, particularly in maintaining the capacity to onboard new teams.

“We believe that successful teams are finding that they can accelerate their growth by being in the RIA space, and as long as the RIA space continues to grow, we believe that we’re going to be positioned to continue our ascendency,” Turner adds. “Our challenge is not in finding successful teams interested in joining us; it’s, ‘Do we have enough capacity to onboard all the ones that are interested in us?’”

When it comes to acquisitions, NewEdge’s strategy diverges from the traditional models that often focus on retiring advisors looking for liquidity. “We think that the area that’s left unaddressed in the marketplace is solutions for mid-career advisors who are growing rapidly and successors who are going to step into the shoes of the retiring advisor,” he says.

For Turner, a lot of this success also hinges on the firm’s healthy book of business – something NewEdge evaluates primarily through net new assets.

“Are you able to grow organically, above and beyond markets? That’s the number-one indicator of health for us,” Turner says.

This metric is vital, especially when considering the future potential of a business, whether it’s being handed over to a second generation or still being driven by a mid-career advisor. And the firm’s refusal to squeeze businesses into a one-size-fits-all model is another critical differentiator.

“Because of our independence and our lean toward successful advisors, we don’t force assimilation," Turner explains.

However, the firm also recognizes the importance of fair compensation and long-term incentives for next-generation advisors who will drive the future growth of these businesses.

“Next generation is going to run some of these books for 20 to 30 years,” Turner says. “They’re going to be at permanently lowered payouts, and I think that saps their motivation. We think you have to have a secondary liquidity event opportunity for next gen, and you have to have the payouts that adjust over time.”

Turner’s insights also extend to the challenges of mergers and acquisitions (M&A) in this space, particularly the integration of new practices into NewEdge’s ecosystem. Unlike firms that aggressively pursue acquisitions regardless of fit, NewEdge is selective, ensuring that the teams they acquire are already aligned with their service offerings and business model.

“We’re not going to be out there writing so many checks or buying everyone. We don’t believe we’ll have integration challenges that others face because we are only looking for teams that are already fully formed and would embrace our services without carrots or sticks.”