There seems to be liquidity out there for at least some brokerage firms to grow their business models extremely quickly, so we might see the new breed of national RIA networks take a similar aggressive approach.
Cortview Capital Securities, based in Richmond VA, only opened its doors in September but has already branched out into Atlanta, Chicago, New York, Charlotte NC, Bellevue WA, Boca Raton and Memphis.
The secret is $125 million in funding from private equity firm Warburg Pincus.
Admittedly, it's unlikely that a "vanilla" advisory firm would get anywhere near that much seed capital -- CCS' focus on mid-market fixed-income trading probably helped it convince the Warburg partners that it's moving into a deeply underserved and lucrative niche. But then, very few RIA networks need $125 million right out of the gate, either.
CCS is hiring aggressively and plans to indulge in some M&A in the near future. Look to see private equity and venture capital firms start backing more propositions like this. The consolidation race is on!