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Executive Summary

Established in September 2021, Nilsine Partners ("Nilsine"), a $1 billion RIA+, transitioned from a wire house team to an independent RIA with guidance from Dynasty Financial Partners ("Dynasty"). Nilsine serves clients by delivering insightful, value-added advice to simplify clients' financial matters and achieve their stated goals.

Nilsine initially heard about VRGL when Dynasty approached them to help evaluate and provide feedback on the potential benefits of integrating VRGL as a Dynasty network technology. Following the transition to independence, Nilsine's focus was on establishing a unique identity in the competitive RIA market and attracting new clients. To support these goals, Nilsine acknowledged VRGL's potential to improve their capabilities and help enhance their prospect communication around differentiation and value add.

Since implementing VRGL in their prospecting process, the Nilsine team has built trust faster by introducing VRGL and relevant data and analytics earlier in the prospect conversation leading to successful client acquisitions, including two 7-figure clients. "The availability of this information changes the conversation," says Josh DeLoach. "Rather than engaging in general discussions about our services and differentiators, we are able to immediately address the intricacies of portfolio performance and the underlying reasons."

Highlighting Two Successful Client Acquisitions

Leveraging VRGL, Josh and his team successfully transitioned two, 7-figure clients by delivering data-driven insights into performance, risk, diversification, taxes, and fees. Highlighted below are two cases where VRGL helped Nilsine provide prospects with key information they needed to make the informed decision of transitioning their portfolio.

Since 2017, Nilsine has been working towards securing a potential client with a $3 million portfolio. With an introduction to Nilsine's new independence, it reignited the prospect's consideration in evaluating Nilsine further and a potential transition. After processing the prospect's 71-page statement, VRGL provided the Nilsine team with 5 Pillar AnalysesTM, of performance, risk, diversification, taxes, and fees. Diversification and performance quickly emerged as key focal points guiding the transition.

In contrast to Nilsine's proposed portfolio, the prospect showcased a significant 17.5% underperformance, elevating the annual return from 6% to 23.5%. While asset allocation contributed a minimal 2% to underperformance, 15.5% was attributed to individual security selection. "We were able to sit down with the prospect and say you're underperforming and here's why," says Josh. "It's not because you have too much or too little in stock, it's because you're choosing the wrong investments and you're holding on to them for too long." Nilsine's data-driven recommendations, advocating increased exposure to private markets and reduced allocation to developed markets, resonated strongly with the prospect. This encouraged a favorable shift in investment strategy, ultimately guiding the decision to select Nilsine as their advisory firm.

"We are converting prospects faster, but also helping create a better foundation for the relationship with the client. VRGL helps validate the prospects decision by backing it with data." - Josh DeLoach

A second prospective client with a $3 million portfolio engaged Nilsine's review following a business-related liquidity event. Despite initially leaning towards his CPA's advice favoring a Morningstar mutual fund strategy, the prospect's desire for a second opinion led him to engage Nilsine for a comprehensive analysis.

Through VRGL's analysis, Nilsine highlighted the significant impact of fees on the mutual fund the CPA was recommending. While the mutual funds' fees were ~2%, Nilsine's proposed fees were a more favorable 1.1% on a full look-through basis, which translated to a potential annual savings around $30,000 should the prospect opt for Nilsine's investment management.

"He was unaware of the fees tied to his CPA's recommended strategy," says Josh. Harnessing the insights provided by VRGL, Nilsine capitalized on the opportunity to educate the prospect on the sales charge and ongoing expense ratio associated with the mutual fund. Presented with this comprehensive understanding, the prospect made the decision to transition his portfolio to Nilsine. Because of the confidence in Nilsine's guidance, the prospect intends to extend the transition of his retirement accounts.

Creating Opportunity

The implementation of VRGL has enhanced Nilsine's ability to deepen relationships, streamline workflows, and cater to their diverse clientele.

"The biggest opportunity that VRGL has created for us is the ability to provide prospects deeper and more data-driven feedback compared to their current situation," states Josh. "Prior to adopting VRGL, meetings with prospects primarily centered around Nilsine's operational methodologies, without diving into a comprehensive investment comparison. Bringing data to the conversation earlier has enriched the relationship-building process and accelerated decision-making."

Further, VRGL has created lift for the analytics and administration teams by automating the statement upload and extraction process, shortening the time spent from days to hours. Additionally, its versatility enables effective use across their diverse client verticals, including individual investors, ultra-high net worth individuals, endowments, and institutions. Finally, VRGL addresses the pain point of cost comparison challenges, by enabling them to analyze costs at a granular level, including expense ratios, and present it in a way that's direct and easy for clients to understand.

Return on Investment

"We have found the investment in VRGL to be truly worthwhile as it realistically paid for itself with just one opportunity closed," says Josh. Josh further emphasized that coming from a wire house and knowing what other technologies are out there, he recognizes the competitive advantage VRGL brings to Nilsine, allowing them to stay ahead of competition and deliver more thoughtful, data-driven advice. VRGL's implementation has enabled Nilsine to leverage advanced portfolio insights and technology, significantly enhancing client interactions and presentations with impactful results.

If you are interested in learning more about how VRGL can help your firm guide wealth transitions, please reach out to sales@vrglwealth.com or connect with us by visiting www.vrglwealth.com/contact.