Sanctuary Wealth, the Indianapolis-based partnership of independent registered investment advisors, rolled out several new capabilities to its partner firms this week at its annual Oasis conference in Hollywood, Fla. This year’s conference is the first to include tru Independence partner firms since Sanctuary closed on its acquisition of the platform in May.
The firm is expanding its business consulting unit, launched last year, to include marketing help. CEO Adam Malamed said in an interview with WealthManagement.com that the initiative will focus on expanding partners’ presence online and supporting their “digital agility.”
“Digital agility really has to do with an advisor’s or an independent wealth management firm’s ability to control their narrative, and understanding that their narrative has to do with how they’re portrayed in the digital world,” he said.
Advisors can receive help with search engine optimization, digital branding, social media connectivity, online testimonials and direct target marketing. The firm has also approved the use of Google Testimonials in line with SEC guidelines.
Sanctuary is also building an internal specialist network to help firms with more complex client needs, such as insurance and estate planning.
“We’re being demanded to provide more services, products, solutions and experiences to clients that usually was once only offered in a family office environment that now these sophisticated practices are offering to high-net-worth investors,” Malamed said.
He expects to hire three to five specialists who will join Sanctuary as employees and have that team in place by the beginning of 2025.
Sanctuary has also expanded its multi-custodial platform with the addition of BNY Pershing. The partnership gives Sanctuary partner firms access to BNY Pershing X’s Wove platform, even with assets held at other custodians.
Partner firms will also now have access to Jump, an artificial intelligence-powered meeting assistant cofounded by Parker Ence, Tim Chaves and Adam Kirk in 2022 and launched in January.
The company’s AI assistant enables advisors to record client conversations, transcribe them and produce notes, task lists, summaries and compliance records. It has integrations with Zoom, Microsoft, Google, Salesforce and the advisor-specific Redtail and Wealthbox CRM applications.
This year’s Oasis conference is Sanctuary’s largest to date, with 500 participants, 40% of which are first-time attendees, including those from tru Independence, the Portland, Ore.-based RIA support platform. The combined entity now represents about $44 billion in client assets. As of the beginning of 2023, Sanctuary had $23 billion in assets.
Similar to how Malamed integrated the broker/dealers he acquired during his tenure at Ladenburg Thalmann, Sanctuary has kept tru as a separate entity, maintaining its brand and leadership team.
“That’s a historical philosophy of mine, of how I’ve always done strategic acquisitions in the space,” Malamed said. “You acquire a company based on the merits of what made it so incredible to begin with. That starts with the DNA of the leadership.”
Sanctuary bought tru to expand its addressable market; it has historically catered to advisors predominantly in the breakaway space, who come under its corporate RIA. Tru supports independent advisors who want to have their own ADV.
Separately, an Indiana Commercial Court judge ruled this week that Sanctuary Wealth breached its contract with EverNest Financial Advisors when it allegedly dragged its feet after the latter firm tried to buy out Sanctuary’s stake in its business.
Sanctuary Wealth made a 20% membership interest in EverNest in 2022. However, EverNest included in its contract the ability to buy back Sanctuary’s membership in the firm if a “triggering event” occurred.
According to EverNest, one such event occurred when a Sanctuary subsidiary settled charges with FINRA in September 2022. More than a year later, EverNest Management Partner Frank Esposito approached Sanctuary about EverNest buying back the firm’s membership interest. The parties moved forward on a call-right process, with nothing left except Sanctuary “executing the relevant documents and agreements,” and EverNest buying back Sanctuary’s share at 80% of the stake’s valuation.
But following an appraiser’s report, Sanctuary “refused to move forward,” arguing the price was too low, according to Indiana Judge Christina R. Klineman.
In an order from EverNest asking the judge to rule in their favor without a trial, Klineman agreed that Sanctuary had breached its contract, arguing EverNest was within its rights to buy back Sanctuary’s membership interest after the FINRA settlement.
However, Klineman deemed that a trial may be necessary to determine if Sanctuary was right to deny payment based on its belief the valuation was incorrect.
