What's Happening?
Jim Atwood and Phil Scott, two veteran wealth advisors from JPMorgan Chase, have departed the bank to establish their own independent wealth management firm, Latigo Peak Partners. This move represents one of the largest wirehouse breakaways in recent
years, with the new firm launching with approximately $18.6 billion in client assets. Atwood, based in Boston, and Scott, based in Bellevue, Washington, previously managed two of the largest practices at JPMorgan Advisors. Latigo Peak Partners, headquartered in Palm Beach Gardens, Florida, will operate as a Registered Investment Advisor (RIA), providing fiduciary investment advice for a fee to ultra-high-net-worth individuals and families. The firm is notable for being self-funded by Atwood and Scott, eschewing private equity backing, which is a common trend in RIA launches.
Why It's Important?
The launch of Latigo Peak Partners signifies a growing trend of experienced wealth advisors seeking greater independence and flexibility outside traditional wirehouse structures. By self-funding, Atwood and Scott aim to maintain full control over their business decisions and investment strategies, prioritizing long-term client interests over the exit timelines often associated with private equity investments. This move highlights the limitations advisors sometimes face within large banking institutions regarding investment opportunities and nimbleness. The firm's focus on ultra-high-net-worth clients and comprehensive family-office services, including estate planning and philanthropic strategy, reflects the evolving demands of affluent clients for tailored and independent financial guidance. This breakaway could encourage other large teams within wirehouses to consider similar independent ventures, further fragmenting the wealth management landscape.
What's Next?
Latigo Peak Partners will establish its operational framework, utilizing Charles Schwab and BNY Pershing for custody and lending. The firm plans to expand its physical presence beyond its Florida headquarters and existing hubs in Bellevue, Boston, and Los Angeles, with potential new offices in Denver and Jackson Hole, Wyoming, within the next year. The firm will focus on public equities and fundamental research, complemented by a suite of family-office services. The success of Latigo Peak Partners, particularly its ability to attract and retain clients without private equity capital, will be closely watched by the wealth management industry. This launch may also prompt major wirehouses like JPMorgan to re-evaluate their retention strategies and advisor compensation models to prevent further high-profile departures.
Beyond the Headlines
The decision by Atwood and Scott to self-fund Latigo Peak Partners challenges the prevailing trend of private equity involvement in RIA deals, which accounted for a significant majority of transactions in recent years. This approach underscores a desire among some top advisors for complete autonomy and a long-term vision unconstrained by external investor pressures. It also reflects a potential shift in the value proposition for advisors, where control and client-centricity are prioritized over immediate capital infusion. The firm's emphasis on comprehensive family-office services suggests a move towards a more holistic wealth management model that goes beyond traditional investment advice, catering to the complex needs of ultra-high-net-worth clients. This could set a new precedent for how large-scale independent RIAs are formed and operated in the future.
