The independent wealth management channel has experienced substantial growth over the last decade, as financial advisors increasingly seek greater freedom and more favorable terms outside traditional structures. This significant industry shift, while promising flexibility and autonomy, presents unique and often complex challenges, particularly concerning clients with existing securities-backed loans. Recognizing this critical need, TriState Capital Bank, a Pittsburgh-based institution deeply rooted in securities-backed lending, has developed a specialized transitions team, offering a truly consultative and differentiated solution for advisors.
TriState Capital Bank’s journey into this niche began with a singular commitment to securities-backed lending, an area they recognized was underserved by dedicated banking resources. While general margin loans exist in the market, TriState Capital Bank built its foundation on being a bank solely focused on this product. This dedication laid the groundwork for their innovative approach. As the industry evolved and more advisors shifted toward independence, TriState Capital Bank observed a growing need for assistance with the intricacies of transitioning these specific loan products. Advisors, often incentivized by previous firms to utilize securities-backed lending for top clients, frequently face a daunting realization during transition: these types of loans often don’t seamlessly move with their clients. This creates a significant hurdle for advisors aiming to maintain client relationships and continue their independent journey.
In 2020, TriState Capital Bank established a business line solely focused on advisor transitions. The team was specifically built to guide advisors through the process of transferring clients with active SBLOCs. Since then, the team has facilitated transitions for over 1,000 advisors, helping them successfully transfer more than $200 billion in client assets to their new firms. This wealth of experience has given the department deep insights into the complex challenges that can emerge during advisor transitions. Through their consultative approach, the team has fostered lasting partnerships with advisors while delivering tailored strategic solutions that serve both advisor and client interests.
For advisors making the leap toward independence, numerous factors demand consideration. They’ll need new relationships with custodians and broker-dealers, a clear understanding of non-compete and non-solicitation clauses in existing contracts, and a robust plan for their new firm’s branding, messaging, and client outreach. Ideally, advisors want their largest clients to transition with them, yet these are precisely the clients who often utilize the broadest range of complex products, including securities-based lending, which they may initially prefer to keep with their prior firm. For these valuable relationships to make the move, the services and rates offered by the new firm must be competitive with those already in place. The ability to offer enhanced services and compelling lending rates can significantly boost the retention of current clients and the probability of winning new business.
“We don’t put things into a box here; we like to leverage our experience and be creative to look at it from a different perspective and figure out what’s going to be the most beneficial way for any advisor to move forward,” says Jamie Keevican, Senior Vice President of the TriState Capital Bank Transitions team, highlighting their hands-on, service-based approach.
TriState Capital Bank operates on a financial advisor-centric model, empowering advisors to manage their valuable client relationships effectively. TriState Capital Bank boasts a dedicated team of 200 private bankers committed to supporting advisors through each phase of their transition and ensuring access to even the most complex financial solutions for their clients. TriState Capital Bank offers a variety of services, including treasury management, premium cash management, and securities-based private bank lending, and currently serves over 16,000 clients, underscoring their unwavering commitment to this vital segment of the financial industry.
¹Represents the aggregate AUM book value of all the transition teams that we have helped support.
Securities-based lending is a non-purpose margin loan secured by eligible, marketable securities. It is non-purpose because the proceeds of the line of credit cannot be used to purchase or carry securities. Securities-based lending has special risks and is not suitable for all investors. The risk of securities-based lending include: (i) market fluctuations that may cause the value of pledged assets to decline, (ii) a decline in the value of the pledged securities that could result in selling the securities to maintain equity, and (iii) possible adverse tax consequences as a result of selling securities. Fluctuations in market interest rates could also affect the applicable index rate that applies to your line of credit causing the cost of the credit line to increase significantly. The interest rates charged on lines of credit backed by securities are determined in part by the line of credit amount as outlined in the loan documents.
TriState Capital Bank is a Pennsylvania-chartered bank.