At a glance
- The withheld portion is the effective price of that support.
- The more services a platform provides, the larger the share it keeps.
- For an RIA weighing Savvy against an established custodian, the comparison is a revenue share against a service menu of compliance, trading and technology.
Savvy raised $100 million and launched a white-label custody platform, InvestmentNews reported.
InvestmentNews describes the split this way: an advisor affiliated with a corporate RIA or broker-dealer that covers compliance, trading and technology might keep 85% of gross fee revenue. The withheld portion is the effective price of that support. The more services a platform provides, the larger the share it keeps. Much of that underlying cost is fixed overhead, not something that grows with the client base.
For an RIA weighing Savvy against an established custodian, the comparison is a revenue share against a service menu of compliance, trading and technology. The platform's fixed costs are costs the advisor would otherwise pay directly. Private Wealth Daily previously reported that Savvy's platform ran on Fidelity's clearing rails with 150 users at launch.
Reported by the Practice management desk from InvestmentNews. Published . Corrections