Diversify Advisor Network, a $7 billion Utah-based wealth management firm comprised of two corporate RIAs and an alternative-focused asset management shop, has expanded the investment management capabilities available to its ecosystem increasing number of advisors.
At the end of last year, Diversify introduced a new organizational model and brand to expand its membership options. Formerly DFPG Investments, a name held by its broker/dealer affiliate, Diversify now includes a platform for affiliated RIAs called Diversify Advisory Services and a new model W-2 operates as Diversify Wealth Management.
DFPG represents approximately $2.8 billion in assets, while DAS and DWM account for $2.2 billion and $2.1 billion, respectively.
The expansion of the investment platform began more than a year ago, when the firm began bringing traditional investments in-house, according to Chief Investment Officer David Wrigley, who joined Diversify in 2022 to lead the effort.
“Part of that is an in-house, institutional-quality trading desk that you have to implement, monitor, trade and make constant changes to strategies that are managed internally,” Wrigley said. “Part of it was also expanding the team to make sure we have all our bases covered as it relates to the strategies we're looking at, while also helping advisors with questions their clients may have. We're even happy to make a live call or meet those customers in person if it makes sense.
“It's really about putting all the resources we have to say we're an in-house, institutional-quality investment platform that's really tailored for each advisor.”
The expanded platform includes more than a dozen alternative fee-based strategies, including structured notes, interval funds and private placements. It offers a comparable number of globally diversified passive strategies and five separately managed internal accounts – three equity and two fixed income strategies. There are also 23 third-party, house-traded SMAs and nine unified managed accounts built by different SMAs.
“We think we've found that sweet spot,” Wrigley said. “We don't want a supermarket approach where there are a hundred or more strategies and seven large caps, and advisers are trying to pick the best one. However, we want it to be robust, versatile and flexible enough for advisers to use it in their own practice.”
Hired and affiliated advisors are not required to use the strategies and models developed by the Diversify investment team, Wrigley noted; the technology platform may support other options and service providers.
“That's just the nature of the industry,” he said. “We want to provide that flexibility to advisors to be able to manage the practice as they see fit.”
The investment team has grown to nine, a 125% increase over the past 12 months. It now includes a trio of traders, a portfolio management group, compliance support and a data analyst, and other job postings are imminent.
More additions to both VNRs are also expected in the coming months.
“Several groups will be joining Diversify Wealth Management within the next 60 days,” Wrigley said. “And on the Diversification Advisory Services side, that's kind of ongoing. We are always trying to find the right fit and maintain a full pipeline of advisors who we consider to be of high quality across the industry and across the country, and who would be complementary either geographically or in terms of particular services or how their practices work.”
Conceived as a sort of antithesis to private equity ownership in the RIA space, Wrigley and CEO Ryan Smith have both expressed confidence that the Diversify Advisor Network is well-capitalized to offer advisors a destination that won't change ownership soon.