PPC Enterprises recently completed an investment in Shook Research, a Boca Raton, Florida-based provider of financial adviser rankings.
Founded by RJ and Elisabeth (Liz) Shook (who are married), Shook Research is the organization behind Forbes’ financial adviser rankings. The company says it works across the wealth management industry to “promote best practices, ethics, and professional excellence.”
PPC took the majority stake in the company, with the founders retaining a significant minority stake. To find out more about the deal, PE Hub turned to Thomas Uger, a partner and head of business and financial services at New York-based PPC, which invests in mid-market service providers across a range of sectors.
What does Shook Research do, and who does it serve?
Shook conducts research – both quantitative and interview-based qualitative – on US-based financial advisers. Shook’s adviser rankings are published on Forbes.com and in Forbes magazine. The rankings provide transparency and a data-driven approach to vetting these individuals, who have increasing exposure as the usage of professional wealth management and advisory services continues to grow in the US. In addition, Shook hosts national and regional events for its ranked advisers. These in-person engagements provide opportunities for advisers to have meaningful peer-to-peer interactions across firms, discuss relevant industry trends and learn about investment products offered by asset management firms.
How does this deal represent PPC’s investment thesis?
PPC invests in leading, tech-enabled services businesses positioned in high-growth markets with a large TAM and strong demand characteristics. Shook is the market-leading research services provider within the financial advisory industry and benefits from: the need for unbiased information that is both data-driven and includes qualitative insights; the growing complexity of wealth management services, driven in part by the growing popularity of alternative investment products; and increasing demand for in-person engagement among key industry participants. We are excited to partner with RJ and Liz Shook during the next chapter of the company’s growth.
What opportunities have you identified with this deal?
Shook serves as an important resource in an industry that values transparent and third-party-validated information. We believe there is an opportunity to “double down” on Shook’s existing business through the introduction of new research products, innovative event formats and support of best practices throughout the wealth management industry.
Where is demand for Shook’s services coming from?
Shook’s demand comes from both financial advisers, of which around 50,000-plus are nominated and/or apply for inclusion in its rankings each year (note: Shook’s research and rankings are conducted independently without payment from advisers); and from its community of asset managers who sponsor Shook events and purchase co-branded media for greater exposure to Shook’s network of financial advisers. Asset managers value Shook’s unique ability to offer exposure to the top-producing financial advisers nationwide.
How are you planning to scale this platform?
PPC’s investment in Shook is growth-oriented. The company is evaluating new, innovative event formats for wealth and asset managers, as well as expanding its research products to cover new professional types (e.g. insurance professionals) and international markets.
Do you have anything else similar to Shook in your portfolio? What are the parallels?
PPC has a thematic focus on businesses providing products and services to the asset management and alternative asset management segments. PPC has current investments in Aduro Advisors, a provider of fund administration services to private capital managers; Indus Valley Partners, a provider of data management technology and managed services to alternatives managers; and PCR Insights, a provider of data aggregation services focused on private banks and family offices.
PPC also has several realized investments in this focus area, including Viteos Fund Services and Mariana Systems. Through these investments, we have a deep appreciation for the need for high-quality, third-party independent data on financial advisers, as well as access to top-producing advisers for leading asset managers to drive fundraising.
What are your differentiators?
PPC has a partnership-focused approach and will bring many additive relationships and resources. At the core of this investment is a partnership with RJ and Liz Shook, co-founders of Shook. We are committed to adding value through our decades of experience in scaling businesses at similar stages of their evolution and our extensive relationships that will help Shook grow and deliver more value to its customers.
