An advisory firm that managed over $3 billion in client assets at Raymond James Financial Services (RJFS) broke away to launch Crux Wealth Advisors as a hybrid RIA and full service wealth management firm, the new independent firm announced Tuesday.
Long Beach, California-based Crux started with an initial tranche of $1 billion in assets under management (AUM). The 16-person team also has offices in Burbank, California, and Westchester, Illinois, according to its website.
More tranches of AUM are anticipated this year, as part of a multi-phase transition strategy planned to occur over the coming months that seeks to minimize client and business disruption. Crux and its CEO and Founder, Travis Alexander, left Raymond James on Aug. 2, after two years of due diligence and preparation, Crux said.
Alexander established the firm in 2016 and, while on the Raymond James platform, grew his firm’s AUM from about $70 million in the first year to over $3 billion as of this year, according to Crux. That achievement boosted Crux into the top 10 branch rankings based on the trailing 12 months revenue across RJFS, Crux said.
Before Raymond James, Alexander was a financial advisor at Ameriprise from 2008 to 2016, according to FINRA’s BrokerCheck.
BNY Pershing Tapped As Custodian
Crux selected BNY Pershing to provide it with clearing and custody services. As of June 30, BNY oversaw $49.5 trillion in assets under custody and/or administration and $2 trillion in AUM.
Chicago-based Arete Wealth will serve as the accommodating broker-dealer and insurance agency for hybrid advisors who join Crux.
Noting that his company shared the news last month that Arete Wealth was expanding its agreement with BNY Pershing, Ben Harrison, Head of Wealth Solutions at BNY Pershing, said: “It’s great to see that a firm like Crux Wealth Advisors is joining forces with Arete Wealth to help them realize their goal of becoming an independent registered investment advisor.”
Joshua Rogers, CEO and Founder of Arete Wealth, applauded the addition of Crux to his firm’s network.
“This strategic partnership with Crux demonstrates our commitment to build strong relationships with top performers while upholding the highest standards of excellence in wealth management,” Rogers said.
Manhattan-based Decerno Advisors served as a strategic advisor for Crux.
“Radical transparency and intentional disruption are the reasons for Crux’ move away from the Red Ocean advisor business models,” according to Kevin Geary, Decerno’s Founding Partner. “Crux’ new Blue Ocean of market options and opportunities will provide the advantages needed to continually innovate and realize the positive disruption envisioned,” he said.
Phase Two Starts
Alexander said that whereas the first phase of business for Crux was establishing proof of concept and scale, phase two now consists of innovation and optimization in alignment with the firm’s values and vision.
“Growth for the sake of growth is not what we’re solving for,” Alexander said. “Sure, that can have a positive impact on share price or profitability but, oftentimes, it doesn’t correlate to improving client experience and success. That’s what our growth plan is solving for.”
A Crux spokesperson added that the firm has a pipeline of potential M&A activity in development, along with opportunities for tuck-in and breakaway advisors.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.
