Dynasty’s Freedom Note’ Brings a Wirehouse Recruiting Trick to Independents
Mindy Diamond Quoted
By Diana Britton
For years, wirehouses have attracted and retained advisors by offering them a significant up-front payment (usually a percentage of revenue) in the form of a loan that would be forgiven if an advisor stayed with the firm for a certain amount of time.
Mindy Diamond, president and CEO of Diamond Consultants in Morristown, N.J., said it’s a familiar construct to wirehouse advisors; that’s how they’re used to seeing deals structured, so she doesn’t think what Dynasty is charging for this is “outrageous.”
“I think that this construct will speak to the advisor that’s probably generating several million dollars or more in annual revenue, but owes a good amount of money back to his firm,” she said. “There are plenty of people like that. Or for whatever reason, just needs a good amount of liquidity, whether that be for psychological reasons, you know, does he risk it? Or because they don’t have a strong personal balance sheet.
