The departures of Rise Private Wealth Management and Fathom Advisors highlight a growing challenge for legacy 1099 platforms: retaining large practices seeking greater control over their businesses.
Ameriprise Financial has lost two more large franchise practices, with approximately $5.6 billion in combined reported assets in a week.
Both follow a familiar pattern: substantial businesses, built over decades at Ameriprise, choosing to take greater control of their technology, investment offerings and ownership structures.
The Route to Independence
The departures are anchored by Rise Private Wealth Management, based in Bedford, New Hampshire. The practice reportedly managed $4.3 billion in assets, according to Forbes. Barron’s placed them at over $8 billion.
Rise launched its RIA on September 10, selecting Schwab for custody and Dynasty Financial Partners for investment-platform and back-office support. Dynasty did not take an equity stake.
The practice is led by Brent Kiley and Robert Bonfiglio, who had spent more than 50 years combined at Ameriprise.
Separately, in Bloomington, Minnesota, Fathom Advisors also left Ameriprise to establish an independent RIA with Schwab as custodian. The practice previously managed approximately $1.3 billion, according to Forbes.
Fathom is led by Randy Doroff, his brother Todd Doroff, and Mark Anderson, Michael Cassidy, and Elizabeth Stokes. Randy Doroff had spent three decades at Ameriprise. The firm cited the freedom to select its own technology, tools, and investments as reasons for the move.
“Ameriprise is a pioneering independent platform, but many advisors are looking for the next level of ownership, control and succession flexibility,” says The Gershman Group CEO Roger Gershman. “They’ve built large, complex practices that have outgrown legacy 1099 models.”
Why Large Practices Are Reconsidering the 1099 Model
For decades, Ameriprise’s franchise model gave advisors a meaningful step toward business ownership: control over staffing and office expenses, a local brand and the infrastructure of a national firm. But advisors still operate within the parent firm’s custody, technology, product, and supervisory framework.
Those limitations can become more consequential as a business grows. Larger teams may want different reporting systems, more investment flexibility, or marketing tailored to their clients. Administrative charges and platform costs also affect what owners retain and can reinvest.
Another consideration is control over long-term enterprise value. An independent RIA can offer more flexibility to admit partners, make acquisitions, choose outside investors, and design succession.
What Advisors Should Take From These Moves
Rise and Fathom join a broader group of practices that have left Ameriprise this year. Their destinations vary, from newly formed RIAs to established advisory firms and competing broker-dealer platforms. Let’s take a look at these moves and where teams are going:
- June: StackStone Wealth — $1.9 billion. Led by Scott Leibfried, the Dubuque, Iowa-based practice left to establish an RIA with tru Independence support.
- May: City Square Wealth Management — $850 million. The Charlestown, Massachusetts-based practice joined Integrated Partners, retaining its name and ownership while operating under Integrated’s RIA. The team included six advisors and nine support staff.
- May: The Bedford Group — $836 million. Joshua Wright, Darren Pracht, David Crow and colleagues announced an independent RIA based in St. Louis, with Schwab for custody and Private Client Services for brokerage.
- March, reported in April: Brick by Brick Wealth Advisors — $609 million. The Denver team led by Kent Zeidman, Darren Levinthal, Erica Hinrichs and Cody Bartusiak joined Integrated Partners.
- February: Seven Bridges Wealth Advisors — $1 billion. The White Plains, New York-based practice led by Max DiSesa, Andrew Buscetto, David Mazzetti and Joseph Femia joined NewEdge Advisors.
- January: ClearTrust Wealth Advisors — $1.4 billion. Matt Robins, Nick Stamatis and Joe Creecy moved their Franklin, Tennessee-based practice to NewEdge Advisors. The group included 12 advisors and 12 support staff.
- January: Houser, Plessl & Staples Wealth Management Group — $530 million. Kevin Houser, Gary Plessl and Matthew Staples joined Wells Fargo FiNet in Allentown, Pennsylvania.
These departures illustrate several paths available to established practices. Some owners want to build and control their own RIA. Others sought to partner with a supported independence platform or established RIA offering enterprise value.
The right comparison starts with the business an advisor wants to own. That means examining total costs, custody and investment flexibility, technology, ownership rights, and succession restrictions alongside any transition payment.
This has to be front of mind for any advisor looking for the next long-term home for their clients and the next generation.