🎙Alt Goes Mainstream EP. 106 - HGGC's Steve Young & True North Advisors' Scott Wood - "the score takes care of itself" on the field and in investing
by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Guest post by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Welcome back to the Alt Goes Mainstream podcast.
Today’s episode welcomes two elite performers in Steve Young of HGGC and Scott Wood of True North Advisors, where they talk about how they formed a partnership based on shared values.
Steve’s private equity firm, $7B AUM HGGC, took a minority stake in Scott’s independent wealth management firm, $3.9B AUM True North Advisors, as part of their broader wealth management investment thesis.
After an illustrious 15 year Hall of Fame career as a three-time Super Bowl winning quarterback of the San Francisco 49ers, Steve embarked on second act to found HGGC that has rivaled his career on the field. Over the past 17 years, HGGC has grown to a $7B private equity firm that has completed 600 portfolio investments.
After working on Wall Street where clients were not being fiduciarily served, Scott's journey as a registered independent advisor started in 2000, when he and his partner Mark Gehlbach decided to pioneer the fee-only model to eliminate conflicts of interest in the client advisor relationship. The foundation they built has led to the growth of a firm that now stands at over 3.9B in AUM, with a large portion of that capital, $812M allocated to alternatives.
Steve, Scott, and I had a fascinating conversation about how they’ve built their respective investment firms, the importance of values and culture, and how they create abundant, fulfilling relationships. We discussed:
Why “the score takes care of itself.”
How and why defining the relationship up front is key in advisor M&A.
How to assess culture fit when merging or acquiring advisors and wealth management firms.
The importance of alternatives for better serving the client in an advisor’s practice.
The concept of “decading” and why long-term thinking is critical in business and life.
Thanks Steve and Scott for sharing your thoughts and decades of wisdom on business building, investing, and partnership.
Thanks Matt Roesch from HGGC for making this episode possible.
Show Notes
00:00 Introduction and Sponsor Message
01:17 Welcome to the Podcast
01:59 Meet the Guests: Steve Young and Scott Wood
02:22 Steve Young's Journey from the NFL to Private Equity
06:13 Scott Wood's Path to Founding True North Advisors
09:13 Building a Scalable and Collaborative Wealth Management Firm
12:22 Need for a Partner
12:57 Choosing HGGC: The Importance of Culture and Values in Business
13:30 HGGC's Investment Philosophy
15:03 Cultural Alignment in Partnerships
22:25 Evaluating Cultural Fit in Partnerships
22:40 Evaluating Cultural Fit
27:12 Governance and Day Two Operations
27:53 Commitment to Cultural Integrity
28:19 Navigating Cultural Fit in Wealth Management
28:55 Wealth Management Growth and Consolidation
29:40 The Role of Private Equity in Wealth Management
30:03 Changing Wealth Management Engagement
31:07 Challenges and Opportunities in Wealth Management Consolidation
32:22 True North's Unique Business Model
33:01 The Impact of Private Equity on Wealth Management
34:42 Exit Strategies and Long-Term Vision
39:39 Building an Alternatives Platform
40:31 Decading: Long-Term Thinking
40:53 Evolution of Alternatives Strategy
45:13 Simplifying Complex Investments
46:37 Fee Structures and Client Alignment
47:24 M&A Opportunities and Relationships
48:37 Mentorship and Professional Relationships
52:56 Future of Alternative Investments
55:56 Closing Thoughts and Reflections
