A prominent figure in the world of US registered investment advisors has launched a RIA business consultancy based in California.

(A version of this news item appeared earlier in Family Wealth Report, a sister publication to this one.)

RIA deal expert Matt Sonnen has today launched a Los Angeles-based independent RIA business consultancy called PFI Advisors, targeting billion-dollar financial advisor breakaway teams, as well as existing RIAs.

Sonnen is formerly of Focus Financial Partners and also held high-level roles at Luminous Capital, which was sold to First Republic Bank in 2012.

Services offered by PFI Advisors for new RIAs include business and infrastructure, on-site transition support and billing set-up and processing. For existing RIAs it covers technology assessments and conversions, new office launches and merger integration.

A spokesperson told Family Wealth Report that PFI differs from some other industry players targeting breakaways and existing RIAs because the firm handles only the breakaway transition process, without an AuM fee structure or equity stake being required. Many breakaways – particularly larger ones – just need some help building the custodial, technology, operations and reporting legs to back their existing infrastructure, for which PFI charges a fee.

Prior to founding PFI Advisors, Sonnen learned the ins and outs of the wirehouse model at Merrill Lynch in the late 1990s. After leaving Merrill in 2005, he entered the RIA sector and helped build the infrastructure for Luminous Capital - which spun off from Merrill Lynch - before its founding in 2008. 

As chief operating and chief compliance officer at Luminous, Sonnen navigated the technology and compliance challenges as the firm grew from $1.7 billion in assets to nearly $6 billion in less than five years. Luminous Capital was sold to First Republic for some $100 million in 2012, after which Sonnen joined Focus Financial Partners in New York City.

At Focus, Sonnen helped breakaway teams and newly-formed RIAs develop strategic initiatives before heading back to California to launch PFI Advisors.

“The reason many billion-dollar teams do not move, or move to expensive platforms that take a piece of their business in some form is that they look out and see complexity, uncertainty and unfamiliarity in the transition process,” Sonnen said. “And it is true that large teams that know they can provide better service for their clients as independents have an ever expanding set of choices when it comes to making the switch. Those with a desire to keep 100 per cent of their equity, revenue and control of their financial destinies now have a partner on the path to pure independence.”

While based in Los Angeles, PFI - which stands for pure financial independence - operates nationally.