REO Capital - Gets in Front of the Shift in Wealth with RIA's

Top Quote REO Capital's research has found that their is a shift of wealth away from Pensions to RIA firms has been a progressive one over the years. End Quote
  • (1888PressRelease) March 29, 2014 - According to Standard & Poor's they estimate that the 25,000 RIA firms control over $20 Trillion in Assets under Management. Today many Pensions are under funded and are in jeopardy such as the recent problems in Detroit with the cities bankruptcy and pension issues! Thus as a result more RIA firms have grown controlling larger amounts of assets under management and become more sophisticated with their investments and their client base as well. This sophistication has lead the expansion of RIA firms more into the institutional side of money management for insurance companies, private banks, pensions, endowments, foundations and High Net Worth Individuals.

    REO Capital has found success in the past with working with these RIA firms and their institutional clients. As a result there are many RIA firms that participate heavily in Private Equity & Hedge Funds. While RIAs are experiencing tremendous growth, managing this growth successfully is a challenge for many RIA firms. Eighty-two percent of RIA' s plan to grow aggressively over the next five years. We see significant growth coming from our sweet spot of $500 Million in AUM to $5 Billion AUM!

    Our Research has shown us that 90% of the Placement Agents in the market place who Raise Capital for Private Equity Funds, or Venture Capital Funds do not distribute their PE funds or VC funds to the RIA Channel ! As more and more of these Pension Funds like Detroit & Chicago & next New York run into severe problems with maintaining these under - funded Investment vehicles, these Placement Agents that do not have relationships with the RIA Firms will have less and less distribution channels to market to & will not have the Success in their Capital Raising efforts like REO Capital !!!

    Within the growing RIA industry is a growing number of Multi-Family Offices that are managing assets for Multiple Wealthy Families at a time! There is also a shift in confidence to the RIA Firms to manage large family wealth for a fee basis away from the large brokerage firms, JP Morgan's and Goldman Sachs of the world! Therefore, when your considering hiring a Capital Raising Firm you want to consider the capital raising firms with the most Distribution Channels they will marketing your PE fund or VC fund to and is the firm keeping up with the shift in Wealth!

    REO Capital has also discovered that Qualitative not Quantitative Is Best when it comes to Raising Capital! Less is Best, or a smaller prestigious boutique firm will deliver personalized, cost effective, Capital Raising services! It's human nature to assume that "Bigger is Better" with regards to Capital Raising Firms, but in fact "Smaller is Better" is best to get Non-Competing, Non-Duplicating, Capital Raising Services ! Larger prestigious firm will try to convince you that Bigger is Better in the world of finance, to justify their larger fees, but its a guarantee by working with 25 or more funds they will have duplicating funds, all targeting the same LP Investors - Pensions, Endowments, & Foundations, charge more, & give less personalized, capital raising services! Prestige is gained by quality not by quantity and REO Capital only works on Five to Ten unique, niche funds annually and that is how we have remained Successful & Prestigious!


    John Denes
    REO Capital, LLC
    Detroit | London | Miami | Hong Kong

  • FB Icon Twitter Icon In-Icon
Contact Information