AA BUSINESS DEVELOPMENT STRATEGY FOR AN RIA FROM AN RIA

TODAY YOU WILL LEARN:

How to Attract and Retain the High Net Worth Client

By Changing the Conversation

95% OF FIRM’S TOTAL CLIENTS

TOP 5% •  74% OF PROFITS •  73% OF TOTAL REVENUE

•  26% OF PROFITS •  27% OF TOTAL REVENUE

FIRM’S CLIENT PYRAMID

1.

2.

3.

4.

5.

CLIENT HOW DID THEY MAKE

THEIR MONEY?

TO

P 5

CLI

EN

TS

9% MMADE THEIR MONEY INVESTING IN

THE MARKETS

84% OOF MILLIONAIRES ARE SELF MADE

“We didn’t get rich investing in stocks.” Wall Street Journal, Ten Things Billionaires Won’t Tell you, 11/17/2013

75% of millionaires became

wealthy through investing

in private companies and private real estate

HOW DID THEY MAKE THEIR MONEY?

HOW DID THEY MAKE THEIR MONEY?

So you want more HNW Clients?

HNWIs are comfortable making capital allocation decisions.

They understand it. They are efficient at it.

So are Financial Advisors, but they speak another dialect.

f

HNWI Private Markets

Financial Advisor Public Markets

PUBLIC

MARKETS

PRIVATE

MARKETS

NNEW

MODEL

A MERGER OF EXPERIENCE

THE PIE CHART GOT US TO THIS POINT

BUT WILL NOT GET US OUT

IT’S TIME FOR A

NEW MODEL

THREE DIMENSIONAL

INVESTING

THE ENTREPRENEURIAL SOLUTION

3D INVESTMENT MODEL

LIQUIDITY

WEALTH CREATION

WEALTH

PRESERVATION

16% Private Equity

WEALTH CREATION

LIQUIDITY

WHO’S 3D INVESTMENT STRATEGY IS THIS?

36% Fixed Maturity

And Cash Equivalents

48% In Public Equities

* SOURCE: BERKSHIRE HATHAWAY’S 2015 ANNUAL REPORT. DETAILS AVAILABLE IN THE APPENDIX

ANSWER:

WARREN

BUFFET 2015 ALLOCATION OF

INVESTMENTS WITHIN

BERKSHIRE HATHAWAY INC.

AANNUALIZED RETURN 20.8% VS.

S&P 500 9.7%

TTTTTTUURN 20.8%

9999 777777%%%%%%%

LIQUIDITY

PRESERVATION

CREATION

THE 3D INVESTMENT MODEL

http://learn.militellocapital.com/3DWorksheet

GET CLOSER TO THE DEAL.

I fear not the man

who has practiced

10,000 kicks once but I fear the man

who has practiced

one kick 10,000 times -Bruce Lee

APPENDIX

APPENDIX

APPENDIX

APPENDIX

Growing AUM with Alts Changing the Conversation

Unanswered questions

How Do We Identify Prospective Clients?

While they’re all around you, you’re likely not talking with them currently The clients you want to work with all have advisors

How Do We Open Conversation?

Sales Approach: Tell them what you intend to tell them

Tell them

Tell them what you told them

Repeat

We leverage both printed and web based marketing

How Do We Efficiently Implement Private Investments?

•  Must leverage a team to implement private holdings •  Create and support a process

How Do We Minimize Risk?

Careful due diligence Insulate yourself Recognize these risks are not unique to Private Investments