Ep 371: Pairing Equity Appreciation Rights With Partnership Equity To Retain Long-Term Advisor Talent With David Savir
Financial Advisor Success
Michael Kitces
4.7 • 719 Ratings
🗓️ 6 February 2024
⏱️ 90 minutes
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Summary
David Savir is the Co-Founder and CEO of Element Pointe Family Office, a fee-only RIA based out of Miami that oversees almost $1.6 billion in assets under management for 50 client households. David's unique approach at Element Pointe, developed over eight years and catering to high- and ultra-high-net-worth clients, involves an Equity Appreciation Rights plan that allows team members to share in the firm's growth. After a 3-4 year vesting period, key members can invest their earnings into becoming future partners, gaining equity, voting rights, and a place on the management team.
Listen in as David shares his journey of working with ultra-high-net-worth clients, leading to a strategic focus on this group and a move away from "emerging wealth" clients to better align with their value delivery. He also discusses Element Pointe's evolution from investment management to offering comprehensive financial planning and family office services, his transition from a corporate background at Goldman Sachs and J. P. Morgan to establishing an independent firm, and the challenges of adapting to an independent firm's demands, from team management to technology integration.
For show notes and more visit: https://www.kitces.com/371
Transcript
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| 0:00.0 | Welcome to the Financial Advisor Success Podcast, where you go behind the scenes with financial planner, |
| 0:08.4 | speaker and consultant Michael Kitsas, to hear stories of how leading financial advisors |
| 0:13.6 | navigated the inevitable challenges that arise on the path to success and get insight from leading |
| 0:19.2 | industry consultants about how to break through to the |
| 0:22.0 | next level in your advisory business. And now here's your host, Michael Kitsis. Welcome, everyone. |
| 0:29.1 | Welcome to the 371st episode of the Financial Advisor's Success Podcast. My guest on today's |
| 0:34.7 | podcast is David Severe. David is the co-founder and CEO of Element Point Family Office, a fee-only RIA based in Miami, Florida, |
| 0:42.0 | that oversees almost $1.6 billion in assets under advisement for 50 client households. |
| 0:47.5 | What's unique about David, though, is that through his eight years building Element Point and focusing |
| 0:52.1 | exclusively on high and ultra high net worth |
| 0:54.6 | clients, he and his partner Carlos Dominguez, have created an equity appreciation rights plan |
| 0:59.5 | to enable the members of their team to participate in the growth of the firm, and key team |
| 1:03.3 | members can then use the cash they earn after a three to four year vestring period to help fund |
| 1:07.8 | the buy-in to become future partners, where they get outright equity in voting |
| 1:12.1 | rights and a seat at the proverbial or actual management team table. |
| 1:16.9 | In this episode, we talk in depth about how David not only works with the ultra-high net worth |
| 1:21.7 | clients with tens of millions of dollars, but has found such success with this core clientele |
| 1:25.7 | that the firm has dialed back on working |
| 1:27.7 | with more emerging wealth clients to just focus on the type of clientele to whom they deliver |
| 1:32.3 | the most value. How David and his partner, Carlos, have increasingly adopted an investment approach |
| 1:37.1 | utilizing both public and private market investments, but have found a more beneficial |
| 1:41.2 | develop relationships with private equity and private credit firms directly on behalf of clients and minimize their use of some of the popular alternative investments platforms. |
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