Controversial adviser Ed Butowsky launches broker-dealer aimed at smaller breakaways
Barbara Herman Quoted
By Jeff Benjamin
While much of the financial services industry has become fixated on building scale through record-level acquisitions of registered investment advisers, Texas-based RIA Ed Butowsky is going against the grain by launching a broker-dealer aimed at recruiting smaller wirehouse reps.
Payout ratios will range from 70% to 91%, he said, adding that “everyone who joins us will become a partner in the firm and they will participate in the growth of the firm.”
Barbara Herman, senior vice president at the recruiting firm Diamond Consultants, said offering employee status with the potential for equity is “the new boutique.”
“Equity can be attractive to the right adviser,” Ms. Herman said. “There’s absolutely room for new entrants in that space.”