In this episode of Zephyr’s Adjusted for Risk, Ryan Nauman speaks with Pete McGratty, Executive Director of RIA Development at Verdence, about the evolution of wealth management and the shifting landscape of the independent channel. Pete outlines three phases of change, from early broker-driven models to the breakaway movement and today’s emerging split between traditional independent RIAs and large PE-backed consolidators. They discuss how scale is expanding service menus (technology, planning, tax, private investments) while differing values can recreate “wirehouse” behaviors inside independence. Pete frames a “four-legged stool” for evaluating firms—fiduciary alignment, proactive client relationships, planning, and investments—and explains how smaller firms can compete by leveraging community resources, succession solutions, and shared capabilities. The conversation also dives into private markets, especially private credit, emphasizing client fit, education, due diligence, and the risks of interval fund liquidity mismatches.

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Learn more about Verdence here.

00:00 Welcome and Sponsor

01:02 Meet Pete McGratty

03:07 Wealth Management Evolution

05:55 Third Wave of Independence

10:42 Consolidators vs RIAs

16:35 Ecosystem Choosing Sides

19:47 How Small RIAs Compete

23:17 Private Markets Opportunity

27:46 Interval Funds and Risks

33:23 Due Diligence Solutions

38:39 Wrap Up and Resources

Connect with Ryan Nauman: LinkedIn