‘Below the Radar’ WM Targets 2023 for First Profit

(Cover Image Source: Dylan Gillis)

Jersey-based wealth manager TEAM Asset Management is currently a “bit below the radar” but does not plan to be for long.

“We’re a small company, but when you look at our board and shareholders, we punch way above our weight,” Mark Clubb, executive chairman, told thewealthnet.

Mr Clubb himself spent 11 years at Canaccord Genuity Wealth Management, while COO and CFO Matthew Moore has a range of roles on his CV, notably having gained experienced at Close Brothers Asset Management and Ascot Lloyd.

Team announced its results yesterday and is yet to turn a profit. Pre-tax losses stood at £1.7 million for the full year ended 30 September. However, having only launched in …. This is hardly surprising.

As a listed company, there is a certain cost burden. For a small company, these costs are felt more strongly. As the firm grows, it expects to feel the weight of these costs far less.

The firm is targeting 2023 for its first profit.

Mr Clubb believes the firm’s business model will help with this. “The vertically integrated approach has a lot of merit because it helps to drive cost savings, which can be passed on to the client,” he explained.

In the meantime, Team is looking to grow. Alongside its results, the firm announced its acquisition of Jersey IFA Omega Financial Services.

The rationale behind this acquisition was to expand Team’s offering. The deal allows Team to advise on pensions in Jersey which is a “natural extension” to the firm’s current wealth planning offering Jersey, which is a natural extension to the firm s current wealth planning offering.

This acquisition should increase TEAM’s assets under management and advice from £291 million to £372 million, as well as adding around 500 new clients.

The new clients are particularly attractive as Mr Clubb believes Team can offer all of these clients additional services. “Your best clients are your existing clients,” he noted.

Omega also reported 2020 revenues of £1.1 million, demonstrating the size and capabilities of the firm.

This is the firm’s second acquisition in less than six months. TEAM acquired JCAP, a Jersey-based cash management platform in July this year.

There are plans to expand outside of Jersey too, primarily to the other Crown Dependencies and International Financial Centres, but TEAM is also considering having an onshore UK presence.

Mr Clubb explained this could be a good way to attract clients who may be considering moving their assets offshore.

Team is also aware of the very significant intergenerational wealth transfer due to take place over the next few years. Beneficiaries often move away from the original wealth manager when they inherit.

While it is harder to move clients from larger firms, “there is room for a well-resourced, contemporary wealth manager to grow in that place,” Mr Clubb said.

Team is trying to position itself away from more traditional wealth managers that are perhaps viewed as old fashioned.

The firm uses a lime green colour scheme on its website and tries to use contemporary art, colours and narratives to differentiate itself.

Site visitors are even greeted with a message asking if they want to switch to dark mode to save electricity.

The firm is focused on understanding what is important to clients and makes sure it is up to date with knowledge about NFTS, crypto and any other developments to remain fresh and relevant.

Speaking to clients, rather than speaking at them, is key to gaining a holistic view of their circumstances and being able to deliver effective advice.

“We need to understand what a computer cannot understand,” Mr Clubb said.

In terms of what is next, Mr Clubb said there is a pipeline in place for future acquisitions. The firm plans to keep growing, but the strategy is clear and Team knows what it is looking for. It will not acquire for the sake of it.