Lido Advisors, a California registered investment advisor with an impressive $19.1 billion in client assets, has recently secured an investment from private-equity investor Karl Heckenberg’s Constellation Wealth Partners.
Heckenberg, widely recognized in the wealth management industry due to his previous role as CEO of Emigrant Partners, has since established his own RIA investment platform. Constellation’s recent investments in AlphaCore and Perigon Wealth Management have further solidified their position in the market. Notably, the investment in Perigon involved the departure of Merchant Investment Management as an equity investor.
While Lido President Ken Stern emphasizes that the firm was not actively seeking new investors and lacks a pressing capital need, he eagerly embraced the opportunity to collaborate with Heckenberg and his team. This partnership comes at a crucial time for Lido as they embark on a growth strategy focused on acquisitions and recruiting efforts. Stern specifically intends to target teams at major brokerage firms, as well as advisors who may have sold their practice to an RIA aggregator but found it to be an ill-fitting arrangement.
Stern reveals that Lido has an impressive pipeline of potential opportunities and anticipates a busy year ahead. He highlights the significance of organic client expansion, but also acknowledges the invaluable expertise that Heckenberg brings to the table in terms of vetting and executing deals within the advisor space.
“I’ve known Karl for a long time,” Stern affirms. “He possesses extensive knowledge of the investment landscape… As we continue to grow, his expertise will undoubtedly play a pivotal role.”
Lido: Building Relationships and Providing Holistic Financial Planning
Lido, a prominent wealth management firm, recently secured a minority investment without disclosing the exact terms of the deal. Charlesbank’s capital infusion has allowed Lido to make strategic acquisitions, such as that of Colorado Financial Management, which manages $2 billion in assets.
Despite its growth and success, Lido is adamant about not becoming an aggregator. Instead, the firm operates under a single brand and prioritizes finding advisor firms or teams that align culturally with their values. Lido caters to high-net-worth and ultrahigh-net-worth individuals and families, offering extensive services like tax and estate planning alongside their core wealth management expertise.
What sets Lido apart is their focus on holistic financial planning. As part of their growth strategy, they seek to expand their range of services beyond traditional wealth management. However, Lido’s CEO, Stern, stresses that the economics of any potential deal come second to finding a team that fits well with their culture. For Stern, maintaining steady contact with clients is crucial, emphasizing the importance of personal relationships in their business approach.
“We are not just another faceless corporation,” Stern affirms. “Our business is built on relationships and personal connections. We actively encourage advisors to engage with clients directly, ensuring a human touch that sets us apart from bots and automation.”
At Lido, the client-advisor relationship is at the forefront. The firm’s dedication to building meaningful connections drives its success and sets it apart in the financial industry.