With Summit Partners’ Bob Thornton, Executive in Residence, and Melanie Whelan, Managing Director

Overview

There was a time when First Republic Private Wealth Management was a top landing spot for corner office wirehouse teams. Then, the bottom fell out with the regional banking crisis. The former unit president, Bob Thornton, joins the show to discuss the fallout and his new chapter building an RIA backed by private equity firm Summit Partners.

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NOTE: The views and opinions expressed by the guests on this podcast are their own and do not necessarily reflect the views and opinions of Diamond Consultants. Neither Diamond Consultants nor the guests on this podcast are compensated in any way for their participation.

Until 2010, First Republic was considered just another sleepy bank brokerage option.

It was then that Bob Thornton, the President of the wealth management unit, was tasked with shaking things up and transforming First Republic into a major player.

And that he did. The momentum started with two mega acquisitions that put First Republic on the map – $6B Luminous Capital and $6.1B Constellation Wealth Advisors. Those deals led to many big recruiting wins over the years, with the unit eclipsing $270B in assets, according to their 2022 filings.

The wealth management unit that Bob helped build had the ingredients of success: a boutique culture, a strong referral mechanism, and the perfect blend of freedom and infrastructure. However, it could not withstand the regional banking crisis of 2023: First Republic Bank’s bottom fell out along with the foundation it provided for the wealth unit, leaving behind stress and uncertainty for the unit’s elite advisors.

Today, Bob is taking all that he learned and starting a new chapter in the RIA world—and the story unfolds with backing from one of the industry’s premier private equity firms, Summit Partners.

In this episode, Bob and special guest Melanie Whelan, Managing Director at Summit Partners, speak candidly with Mindy Diamond. They discuss:

• The reality of what happened to the wealth management unit at First Republic—and what Bob learned from that experience.
  
• Bob’s vision for the new firm—and why he feels top advisors will be attracted to it.
  
• The value that Summit Partners sees in this venture—and how Bob’s expertise in creating the “secret sauce” that attracted top advisors to First Republic was an attractive proposition to the PE firm.
  
• The role that Summit Partners will play in this partnership—and the growing trend of private equity in the RIA space.
  
• Plus, Melanie talks about how her experience as both COO and CEO roles at SoulCycle is shaping the process of building and growing the new wealth management business from the ground up.
  

It’s rare, behind-the-scenes access to the creation of a new firm—that, as of this recording, the name of which has yet to be revealed.

Want to learn more about where, why, and how advisors like you are moving? Click to contact us or call 908-879-1002.

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Bob Thornton

Executive in Residence

Bob Thornton joined Summit Partners as an Executive in Residence in late 2023. Prior to joining Summit, Bob served as President of the Private Wealth Management business of First Republic Bank, where he led the growth of that business from under $10 billion in assets to more than $250 billion.

In his role with First Republic, Bob placed a premium on supporting the investment advisor as “Wealth Manager” to meet clients’ full wealth management needs.  Along with his team, Bob developed a series of growth programs including integrated planning resources, a white glove insurance product and an internal referral construct that contributed to significant growth in the client and asset base of the Wealth Managers at First Republic. During his tenure, he and his colleagues were able to attract many high caliber financial advisors from across the industry.

Bob holds a B.A. in Economics from Duke University and a J.D. from Columbia Law School.  Prior to joining First Republic, Bob had a successful twenty-year career in investment banking, principally focused on mergers & acquisitions and financings. He began his career at Goldman Sachs, followed by leadership roles at both Credit Suisse and Deutsche Bank.

Bob is excited to be embarking on a new chapter with Summit Partners to build a service-focused wealth management platform to both serve clients and create a great home for advisors.

Melanie Whelan
Managing Director

Melanie joined Summit Partners in 2020 and is a Managing Director on the Growth Products & Services team. She focuses primarily on high-growth consumer and technology-enabled services. Melanie’s board and investment experience includes Hairstory.

Prior to Summit, Melanie was CEO of SoulCycle. She joined SoulCycle in 2012 as COO and spent three years building and leading operations before her promotion to CEO in 2015. Under her direction, SoulCycle grew from eight NYC-based studios to nearly 100 studios in 18 markets across three countries. She led the company’s diversification efforts, which included launching a vertically integrated, direct-to-consumer e-commerce platform and building a media division to drive audience and revenue growth strategies, including a 24/7 SiriusXM channel.

Previously, Melanie led Business Development for Equinox where she was part of a team that executed a multi-brand strategy with the U.S. launch of Pure Yoga, the creation of Blink Fitness and the acquisition of SoulCycle. Earlier in her career, she was a member of the founding team of Richard Branson’s U.S. air carrier Virgin America and worked in corporate development at Starwood Hotels and Resorts.

Melanie currently serves on the Board of Directors of Chegg (NYSE: CHGG), the Board of Trustees of Southern New Hampshire University, and the GO Project, a non-profit focused on K-8 education inequity in New York. She holds a BA in engineering and economics from Brown University and is a member of the Aspen Institute’s 2018 class of Henry Crown Fellows.

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