Much like the broader financial sector, the asset and wealth management (AWM) industry continues to face massive challenges in a post-pandemic business environment.  

On the one hand, the industry is navigating challenges brought about by the various economic and industry pressures that rocked the United States in 2023. On the other hand, a continued squeeze on fees, consolidation, and changing investor preferences are forcing AWM firms to adapt or die. They’ve responded by rethinking their strategies, expanding into new segments, diversifying their product, and scaling with new asset classes.  As these institutional investors seek new sources of return, they are increasingly recognizing the benefits of investing with small, emerging, and diverse managers.

This was no surprise to Devon Drew, the founder of DFD Partners. Having spent 16-plus years at companies such as Vanguard, American Century Investments, Alger, and J.P. Morgan Chase, he’d been in the industry long enough to see first-hand the progress made — and how much more is yet to be done. 

“It’s impossible — literally impossible — for smaller-sized asset managers to get their strategy in front of financial advisors in the speed required to stay competitive in this market,” Devon explained. “In this day and age, when AI is fueling unprecedented growth across every industry, why is it that the only way of reaching an advisor is by doing research on each financial advisor you plan to meet and what they’re looking for? It’s inefficient AND expensive, in addition to being an outdated way of doing business.”

Devon noted that underrepresented asset managers in particular face difficulties in reaching the vast number of investment advisor representatives in the RIA market.

“It can take numerous meetings to acquire a single client, making scaling up a daunting task for small firms, and impossible if they aren’t in the SuperStores, i.e., the fund supermarkets run by bigger firms,” he said. “If a financial advisor is looking for a niche product — whether that’s limited carbon emissions or a manager that focuses on serving a particular market — it’s often a long and arduous process to find a match.”

Revolutionizing Connections & Capital Introductions 

Devon saw the opportunity to leverage tech on behalf of financial advisors while empowering smaller and more diverse asset managers with the tools and resources critical to reach scale. Hence he left Vanguard to successfully launch AssetLink, a data-driven distribution platform aimed at helping underrepresented asset managers scale up the distribution of their investment strategies, and in turn, help financial and investment advisors discover diverse asset managers.

The platform was well received in its beta. Since its inception in 2021, AssetLink has gained more than 40 asset manager clients as well as RIAs with over $50 billion in assets. One of its key advantages is its use of AI to match asset managers with financial advisors who want their portfolios to mimic their culture/morals — a desire expressed by their customers. The data-centric approach of AssetLink uses data from publicly available sources, including Forms ADV and 13F, along with social media data from platforms like LinkedIn, to identify potential matches between financial advisors and asset managers. 

The results? A shortened sales cycle, a budding community of like-minded business professionals, streamlined costs, and incredible convenience.  

While Devon is excited about the initial results he’s even more excited about the potential.

“The truth is, the asset management industry is projected to reach $1 trillion in diverse manager AUM by 2030,” said Devon. “Would I like that to flow through the AssetLink platform? Absolutely.  But whether it’s through AssetLink or another method, I know for sure that 2024 is going to bring an incredible number of opportunities for the community and I’m thrilled to be part of it.”

AssetLink was built out of the need for a more streamlined way to connect asset managers, financial advisors, and accredited investors. Asset managers effortlessly connect with the right advisors, speeding up their AUM goals. Advisors can quickly match client fund needs with available products on the same platform. Contact us today to learn more.