Dabarno seeking high-quality advisors

A year after losing its CEO, Richardson Partners Financial found its replacement from within. The Winnipeg-based wealth management firm announced on Tuesday that Sue Dabarno, its president for the past year, has added chief executive officer duties to her role.

She replaces the CEO-by-committee that has operated since Mike Miller, president and CEO since the company was launched in November 2003, left for personal reasons. For the past year, Dabarno, JP Janson, the firm’s executive vice-president, and Sandy Riley, president and CEO of RPFL’s parent company, Richardson Financial Group, shared the CEO duties.

Riley says Dabarno’s promotion was a direct result of the growth in RFG’s two operating companies — RPFL and its private equity division.

“We’ve got almost $6 billion in assets [at RPFL] and we’re still trying to grow. That requires a different way of approaching the business. Sue’s appointment reflects the increasing responsibilities she has at Richardson Partners,” he says.

Earlier this week, Riley told a business luncheon in Winnipeg that its private equity division expects to raise between $650 million and $750 million for its second fund when fundraising wraps up next month, more than double the amount raised for its first.

Dabarno says the firm’s growth goals haven’t changed just because there’s a new CEO at the helm. “I want to make sure we execute our client strategy correctly, that we’re in synch with the brand and that we deliver as clients expect us to. We want to continue to bring in high-quality advisors,” she says.

RPFL has 53 advisor teams specializing in high-net-worth clients in eight offices across the country — but Dabarno promises that’s about to change.

“We will be expanding into other major centres before the end of the year. The footprint will extend beyond the eight offices we have. We’ll likely have another office in the GTA area by sheer traffic patterns alone and we need to get out to the east coast,” she says. RPFL’s current locations are in Toronto, Montreal, Winnipeg, Vancouver, Edmonton, Calgary, Mississauga and Sherbrooke.

The company will be on the lookout for top-notch advisors until it reaches 150 teams. If the current trends continue — each of its 53 teams manages about $124 million in assets — and organic growth is factored in, the firm could have assets of more than $25 billion by 2013. RPFL had just $4 billion in assets a year ago, Dabarno points out.

The firm’s model, which includes equity stakes for its advisor “partners,” is a key recruitment carrot.

“I really enjoy working with advisors who are partners and owners in the firm. I think it makes a big difference. It’s not a head-office-versus-advisor relationship. We’re very much on the same side of the table,” she says.

According to Riley, RPFL has had one profitable month thus far, but he thinks that’s about to change for the better. He explains the company has had higher expenses than it would ordinarily because it’s geared for growth, including having as-of-yet unused office space in high-rent districts and significant investments in product support.

“We are geared up for a business that should be around $7.5 billion in assets and growing from there. This is designed to be a business that is ultimately $15 billion or $20 billion. We’re achieving the targets we set for ourselves in terms of asset growth and the expense profile. We’re that close [to profitability] as we continue to build our scale. Eventually, some time in the next little while, the profit will be permanent,” he says.

Renee Alexander is a Winnipeg-based freelance writer