PFI Advisors Releases New Industry Report: “Liability Management: Innovative Lending Solutions in the RIA Space for Breakaway Advisors”

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Report sheds light on open architecture lending solutions available to breakaway advisors to better manage client balance sheets.

Independent RIAs actually have more choice and flexibility for their clients due to their open architecture and ability to access high quality lending solutions from multiple sources.

PFI Advisors (“Pure Financial Independence”) today announced the release of a new industry report on one of the key opportunities for independent advisors that captive, wirehouse advisors can take advantage of by starting their own independent firms: high quality lending solutions.

Historically, many advisors working in the wirehouse community assumed that only their parent firms had access to sophisticated client lending solutions due to their affiliation with a large, bureaucratic bank, while in reality, new innovation by leading financial services firms has created a thriving marketplace for client lending needs.

The report. “Liability Management: Innovative Lending Solutions in the RIA Space for Breakaway Advisors,” identifies the many solutions now available for independent advisors to leverage in better serving their clients’ financial planning goals and objectives. New product innovation from leading financial institutions such as BNY Mellon's Pershing Advisor Solutions, TriState Bank and Raymond James Bank are a few of the independent advisor solutions profiled in the report.

In today’s more complex low-interest rate environment, managing both sides of the client’s balance sheet is expected by high net worth individuals and families. As a result, advisors need to broaden their service offering to include complex lending solutions in order to maintain their central role in their clients’ financial lives.

“As the process of offering lending solutions to clients has become more and more popular, wirehouse advisors considering going independent have been unwittingly hesitant, because they mistakenly thought that as an independent, they would lose access to these products,” said Matt Sonnen, CEO of PFI Advisors and author of the report. “The reality is exactly the opposite – independent RIAs actually have more choice and flexibility for their clients due to their open architecture and ability to access high quality lending solutions from multiple sources.”

According to the report, independent advisors can tap the expertise of multiple custodians, third-party banks and mortgage specialists to find comparable, sophisticated offerings for their client base. “We were excited that when we left our wirehouse to go independent, that our custodian was able to recreate every single one of our clients’ loans under margin,” noted one breakaway advisor interviewed as part of the report’s research. “Our custodian was able to structure every loan so the rate matched or beat their existing rate, and the available credit line matched what they had with their former Wall Street bank.”

The report profiles three leading financial institutions among many and their strategies for helping advisors manage client lending solutions, as well as an introduction to their innovative products:

  • TriState Bank – Offering Non-Purpose Lines of Credit with both LIBOR-based variable rates and fixed options, solving for many short and long term financing needs, such as real estate purchase, business investments, luxury purchases, debt refinancing and more.
  • BNY Mellon's Pershing Advisor Solutions– Offering multiple private banking solutions through BNY Mellon, N.A., including jumbo mortgages, securities-based lines of credit, life insurance premium financing, commercial real estate financing, as well as escrow services.
  • Raymond James Bank– Offering experienced and knowledgeable mortgage consultants as well as the Raymond James Bank Deposit Program, an innovative way to sweep cash into accounts at up to 12 different banks, providing up to $2.5 million in FDIC protection.

“Our experience in working with breakaway advisors has shown us that there still exists confusion around some of the fundamental opportunities in the independent RIA space,” said Sonnen. “As a result, we will continue to publish thought leadership content to better educate the industry and showcase the top innovative solutions available to help advisors make better decisions for the future of their business. We are grateful to TriState Bank, Pershing Advisor Solutions and Raymond James Bank for sharing their insight and expertise.”

To read the full report, log onto

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About PFI Advisors

“Pure Financial Independence.”

PFI Advisors, LLC (“Pure Financial Independence”) was founded in 2015 with the following mission in mind: “To further evolve the RIA industry from a collection of practices to businesses, and to be a continued voice in validating the industry as a legitimate landing spot for billion-dollar teams and their clients.” PFI Advisors is pioneering an operational consulting service that supports the unique back-office, technology and operational needs of RIAs in growth mode. The firm conducts Technology Assessments, manages Technology Conversions and provides M&A Preparation and Integration Services. For breakaway advisors, PFI Advisors manages full RIA set up and transition to Independence, including office build-out, RIA infrastructure, client transition, and billing services, all for a simple consulting fee. There is no complicated, long-term AUM fee structure or equity stake required to build the firm’s future and provide advisors Pure Financial Independence.

About Matt Sonnen
Prior to founding PFI Advisors, Matt Sonnen learned the ins and outs of the wirehouse model at Merrill Lynch in the late '90s. After leaving Merrill in 2005, he was introduced to the RIA marketplace a few years later when he helped build the infrastructure for Luminous Capital prior to their founding in 2008. As COO and CCO at Luminous, he navigated the technology and compliance challenges as the firm grew from $1.7 billion in assets to nearly $6 billion in less than five years. Luminous Capital sold to First Republic Bank for more than $100 million in 2012, after which Matt headed to Focus Financial Partners in New York City. There, he helped breakaway teams and recently-formed RIAs develop strategic initiatives to benefit from best practices, streamline operations, and improve efficiency before heading back to California to launch PFI Advisors with his wife and business partner.

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