February 20, 2024
Mindy Diamond Cited
by Mason Braswell
Boston-based private equity firm Summit Partners is backing former First Republic Private Wealth Management head Bob Thornton’s wealth management venture, according to an announcement on Thursday.
Summit has committed at least $100 million in funding for Thornton, according to one source close to the executive. Thornton is expected to launch a registered investment advisory firm mid-2024, he confirmed in a podcast last week. He joined Summit as an executive in residence in San Francisco, according to the announcement.
Thornton’s new role adds to a growing list of First Republic émigrés seeking to lure high-end wirehouse teams to independence and comes as private equity has been fueling advisory firm deals.
Thornton’s RIA will be offering a combination of upfront cash and equity to lure veteran brokers, he said. The ability to eventually cash out on their equity value could make the offer competitive with bonuses of 400% of trailing-12 revenue that are being offered by some wirehouses, Thornton said in an interview with industry recruiter Mindy Diamond.
“When you combine leadership, growth track record, the breadth of our capabilities, and the equity opportunity, and the overall incentives, I do think it’s different,” Thornton said.
