NewEdge Wealth, one of the fastest-growing independent firms, has cemented its place among the top independent platforms with the landmark acquisition of a $25-million team led by Justin Waterman at Summit Trail.
The move is a coup for NewEdge, which was founded just five years ago. Summit Trail is part of Dynasty Financial Partners, another supported independence platform and known for attracting high-caliber teams. The space has evolved so that top teams have more options for serving sophisticated clients.
Waterman who started his career at Lehman Brothers is and will be a major force in our industry. He is in his mid-40’s, and New Edge is building a massive 20,000 square foot office to acquire other major teams in the NY Metro market to build around him.
This move is a wake-up call to advisors about the powerful economics, brand control and service model of supported independence. Lots of firms have entered this market in recent years to capitalize on the breakaway movement, but NewEdge has set itself apart with a differentiated service model and strong backing that appeals to select high-net-worth and ultra-high net worth teams.
The size and backing behind NewEdge Wealth give comfort to advisors and their clients. It operates on the backbone of $700-billion retirement plan administrator EdgeCo Holdings.
Think big bank, family office resources but is a fully independent platform with completely open architecture investment custodians including Goldman Sachs, Schwab, Fidelity and even Raymond James.
Another reason NewEdge is so appealing to advisors is that it is driven by experienced and reputable Wall Street management execs that advisors know well. Sechan joined forces with former ex-UBS Private Wealth head John Straus, and NewEdge’s board includes former UBS Wealth CEO Robert McCann. It also has backing from the top investors on Wall Street, including Leon Cooperman’s Omega Advisors, Jamie Dinan’s Yoak Capital Management and Parthenon Capital, a Goldman Sachs-backed private equity firm.
“It’s probably the only firm that looks and feels like a traditional brokerage firm while maintaining a boutique culture and independent support system,” said The Gershman Group CEO Roger Gershman, who works closely with NewEdge and the entire management team including founder Rob Sechan. Roger knew Rob very well from the days when he was at UBS, who shared his vision of what he really wanted to create. Roger says, “I was one of Rob’s first calls to help him recruit top talent.”
This is now one, if not, the fast growing RIA’s in the country. It started when Sechan himself was a $20M/$5B UBS team, and his breakaway five years ago has helped spawn a $65 billion mini-empire at NewEdge Capital, which includes NewEdge Wealth and a more mass-affluent independent broker-dealer division. He has built NewEdge wealth in large part because he understands why the one-size fits all model of wirehouses does not work for sophisticated teams.
“The deal” is very attractive with room for advisors to negotiate and customize offers depending on what degree of independence they would like or whether they want to combine their equity with that of the broader enterprise. Essentially there are two core deals;
- Own 100% of your own independent brand with big bank family office resources and excellent support. The economics are extremely competitive with very high 1099 payouts along with an aggressive transition package.
- Sell 100% of your brand equity for theirs. This looks and feels like a traditional Wall Street package with big front ends and back ends but also includes a large equity offering. This package can be 500% and if equity grows, it could be over 1000%.
“Advisors appreciate to be educated about the options when deciding to build and grow their own independent practice or with the larger enterprise,” said Gershman, who has helped advisors who join NewEdge negotiate their deals and understand the nuances of NewEdge compared to other competitive platforms.
“NewEdge is a great model, and this move is a huge win for them. Though I believe we are only in the 3rd inning – so expect a whole bunch more,” Gershman said.
As the Editor of The Gershman Group, a boutique financial services consulting firm, TGG brings expertise in financial analysis, strategic planning, and market research. With a keen eye for detail and a passion for helping businesses navigate complex financial landscapes, TGG delivers insightful, high-quality content to empower informed decisions. Backed by years of industry experience, TGG makes complex topics accessible through clear and compelling communication, shaping the firm’s thought leadership and commitment to excellence in financial services.
