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Niche IBD adds advisors with $180M in push against large-firm ‘constraints’

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A niche independent broker-dealer focusing on the high-net-worth space has more than tripled its annual revenue in only its second full year since launch.

Arkadios Capital reached $14 million in revenue in 2018, up from $4 million in 2017, according to founding partner, David Millican. The Atlanta-based IBD left Triad Advisors in 2016, and it added teams with $180 million in client assets from the Ladenburg Thalmann IBD this month.

Strategic partners Patrick Simpkins and Diane Staples of Proximity Financial Partners — along with Drew Komlo of KG Wealth Management — brought their practices to Arkadios. Proximity focuses on full-scale planning, while KG primarily handles retirement plans and 401(k) business.

Arkadios has expanded to $2.9 billion in client assets managed by nearly 60 advisors, about half of whom use their own RIA. ACG Wealth — the corporate RIA owned by Millican and founding Arkadios partners Jeffrey Shaver and Jody Young — had once been Triad’s largest hybrid RIA.

“We're not inventing the wheel, we're just trying to make it better,” Millican says, identifying the firm’s target recruits as high-end teams with large assets struggling against “constraints and rules that are made up for the masses” at large firms.

“I think there's an opportunity to really listen to advisors and just kind of solve problems,” he adds.

Thirteen of the top 25 companies generated double-digit growth in 2017 as rivals close in on the perennial No. 1 firm.
June 4

Representatives for Ladenburg didn’t respond to requests for comment on the departure by the partnering teams.

The teams operate from offices in North Carolina’s Research Triangle and a suburb outside Washington, D.C. Proximity has around $100 million in client assets, while KG has about $80 million.

Simpkins launched Proximity in Raleigh in 2007, according to the practice’s website. Both he and Staples started their careers with Simpkins at SunTrust Banks in 2003, and she came to the practice in 2016 after five years with Wells Fargo Advisors, according to FINRA BrokerCheck.

The duo joined Arkadios on March 4 and 5, respectively, while Olney, Maryland-based Komlo started on March 18. Although the practices are separate, they consult, sharing areas of expertise. Simpkins and Komlo each spent eight years with Triad.

In a statement, Simpkins said Arkadios was a good fit with the practices because it’s “advisor-owned, advisor-focused, smaller, flexible, willing to hear what we have to say and help us find solutions that are in our clients’ best interest.”

ACG Wealth manages $754.9 million in assets under management for 242 HNW clients, plus $331 million for 1,179 other individual clients, according to the firm’s SEC Form ADV. ACG and its affiliated IBD work with Fidelity, TD Ameritrade and Charles Schwab for clearing and custody.

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