Creative Planning’s Purchase of RVK Further Blurs Lines Between Institutional and Retail Investing

Detailed summary

One of the largest wealth managers in the U.S. has bought one of the last major independent institutional advisors, one more sign that the lines between retail and institutional…

One of the largest wealth managers in the U.S. has bought one of the last major independent institutional advisors, one more sign that the lines between retail and institutional investing are blurring.

Creative Planning announced plans to buy RVK, a more than 40-year-old non-discretionary investment consultant that advises roughly 200 institutional clients with $4.3 trillion. Peter Mallouk, president and CEO of Creative Planning, said in a statement that the advisor needed RVK’s investment research and consulting expertise to enhance the $70 billion registered investment advisor’s growing retirement and institutional business.

The acquisition follows a series of similar deals in which large wealth advisors have acquired institutional consultants, including Cerity picking up Verus in February and Hightower buying a controlling stake in NEPC roughly two years ago.

“When we joined Hightower we predicted this would be a greater trend and that many of our peers would follow suit,” said NEPC’s chief investment officer Sarah Samuels. “We were happy to pick our dance partner early.”

“There’s a lot of opportunities for institutional-focused organizations to provide some best practices and advice to the wealth space,” Samuels added.

RVK’s co-president and senior consultant Spencer Hunter told Institutional Investor via email that the decision to go under Creative Planning’s wing “was less about timing and more about aligning with the right partner.” Hunter added that RVK’s current management team will continue to run the business, and while there are no initial plans to change the RVK brand, that could change over time.

Industry observers have noted that the deal, which would have been unheard of a few years ago, is another indicator that the investment advisory industry's traditional boundaries are changing.

“Historically, these were very different businesses. Today, the lines are increasingly blurring,” said Bradley Alford, founder of Alpha Capital Management.

While the…

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