Intro to Team Lift-Outs

Lift-outs of entire teams have become an increasingly common growth strategy within our industry, often substituting for acquisitions or an “organic” build approach.  In many situations, team lift-outs offer several important advantages including:

  • Speed to market with proven track records and ideally, GIPS compliance
  • A cohesive dynamic among a group that already knows how to most efficiently work with one another
  • A unanimous desire to join the new firm and enthusiasm about the future.
  • AUM that can follow within a short time frame

The financial structuring of a lift-out may take many different forms.  Most often, teams are willing to accept some level of performance-based business risk, in exchange for greater participation in success. Providing the proper incentives to maximize sound business growth while maintaining the excellent track record that was undoubtedly an element driving the transaction is a key to a successful lift-out.

Executing a successful lift-out requires careful navigation around multiple legal issues.   It is critical to partner with a recruiting firm that understands the various restrictions, behaviors, language and record-keeping that are imperative to a successful conclusion.   The same is true for management of perceptions, emotions and egos, all of which may serve as impediments to success.

The GF Parish Group has been instrumental in guiding clients throughout the industry to identify worthy teams, conduct in-depth due diligence,  carefully pursue and negotiate with teams across a wide variety of strategies and situations.  If you are considering a team lift-out, our experience and diligence will help you to successfully cross the finish line.