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Wallace Finance builds AI digital-twin tool for RIA roll-up diligence

The enterprise version is due early next year and would compare a buyer's practice profile with a smaller firm's.

At a glance

  1. Understudy launched last month as a way to capture an advisory practice for training, continuity and succession.
  2. The diligence version would let larger RIAs and aggregators compare their own Understudy against a smaller firm's, according to the report.
  3. CEO Matt Baldwin said the tool will never replace the rapport an advisor builds with clients.

Wallace Finance is building an enterprise version of its Understudy digital-twin tool for RIA roll-ups to vet acquisition targets, due early next year, WealthManagement.com reported.

Understudy launched last month as a way to capture an advisory practice for training, continuity and succession. It collects a firm's documents, policies and procedures, maps its rules and methodologies, then checks them against what the advisor actually does in the CRM, custodian, notetakers and email. Advisor interviews produce a methodology profile.

The diligence version would let larger RIAs and aggregators compare their own Understudy against a smaller firm's, according to the report.

That would extend diligence beyond the book's revenue to how a target's advisors make judgment calls and talk to clients. CEO Matt Baldwin said the tool will never replace the rapport an advisor builds with clients.

Reported by the M&A desk from WealthManagement.com. Published . Corrections

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