The Top Form ADV Features in Dakota Marketplace

In the complex world of investment sales, transparency and regulatory compliance are paramount - one of the key tools ensuring this transparency is Form ADV data. Form ADV is a comprehensive document that RIAs must file with the U.S. Securities and Exchange Commission (SEC). If you are familiar with us at Dakota, you probably know we love RIAs - they are a goldmine for any investment sales professional.

Form ADV provides critical information about an adviser's business practices, fees, conflicts of interest, and disciplinary history. Understanding and utilizing this data is crucial for fundraisers as it offers a detailed snapshot of an adviser's operations and regulatory status.

Historically, government websites providing this information required users to have significant prior knowledge and expertise, offered antiquated user interfaces, and had minimal filtering capabilities. Dakota Marketplace overcomes these challenges with a user-friendly interface and powerful filtering options, which we will get into below.

In this article we are going to review the top ADV features in Dakota Marketplace. By the end of this, you’ll have a better understanding of these features and how they can assist you with your fundraising efforts.

1. AUM Filtering:

In Dakota Marketplace, you will find dynamic AUM filtering capabilities. Users can view the total number of accounts and the total U.S. and non-U.S. dollar amounts across both discretionary and non-discretionary AUM. This feature allows for precise filtering based on AUM thresholds, setting minimum or maximum values, and similarly filtering by account numbers. 

For example, users can effortlessly search for all RIAs in Houston with over $10 billion in AUM spread across 150 or more accounts. This level of detailed filtering ensures that investment sales professionals can pinpoint exactly the advisers that meet their specific criteria, enhancing their research and decision-making processes.

2. AUM Changes: (Coming Soon)

In addition to AUM filtering, users of Dakota Marketplace have the ability to track how an RIA’s AUM has changed over time. This feature provides a historical perspective on an adviser's asset growth or decline, allowing users to see trends and patterns in their financial management. 

Understanding these changes is crucial for investment sales professionals. Rapid growth in AUM may indicate an adviser's increasing popularity and success in attracting new clients, signaling strong performance and potential for future growth. A decline in AUM could raise red flags about possible issues within the firm, such as client dissatisfaction or poor investment performance. 

By monitoring these changes, professionals can make more informed decisions about which advisers to partner with or recommend, ensuring they align with their strategic goals and risk tolerance.

3. Client Base:

Dakota Marketplace allows users to view the total number and type of clients, along with the associated AUM for each category. This feature is incredibly useful for fundraisers as it provides insights into the adviser's client demographics and the distribution of their assets. 

Users can filter this information based on various criteria. For example, you can search for all RIAs with over $100 billion in AUM that exclusively service a client base of Charitable Organizations or Pension and Profit Sharing Plans. Alternatively, you can identify all RIAs with over 1,000 high-net-worth (HNW) clients that contribute at least $20 billion to their overall AUM. This detailed filtering helps managers identify advisers who align with their target demographics and strategic goals, making informed decisions and tailoring services to specific client needs.

4. Advisory Services:

Dakota Marketplace offers advanced filtering to analyze specific advisory services offered by RIAs. Users can filter based on criteria such as which RIAs use outside managers or run their own pooled investment vehicles. 

This feature is vital for investment sales professionals as it reveals key aspects of an adviser's business model and expertise. For example, RIAs running their own pooled vehicles may have greater control and sophistication, while those using outside managers might provide broader investment options. These insights help managers align with advisers whose services match their strategic needs and client preferences, ensuring effective partnerships and tailored investment solutions.

5. Asset Allocation Changes - Mid to End of Year

Dakota Marketplace allows users to view asset allocation changes for RIAs based on mid-year and end-of-year values. This feature lets users track how assets are distributed across different investment categories over time.

For instance, users can filter to find RIAs that had 50% of their assets in exchange-traded funds at the end of the year or simply observe how allocations have evolved. 

6. Custodians:

Dakota Marketplace provides insights into which custodians are used by RIAs and the amount of money held with each. For example, users can filter based on specific criteria, such as identifying RIAs with over $5 billion in AUM and more than $3 billion of their assets held at Schwab. 

This feature is invaluable for investment sales professionals, offering a clear view of an adviser's custodian relationships and asset distribution. Understanding these details helps managers evaluate the stability and preferences of RIAs, making it easier to align with partners whose custodian choices match their operational needs and client expectations.

7. Private Funds:

Dakota Marketplace enables users to identify which RIAs are running their own fund of funds. This feature is particularly useful for private markets firms, as it indicates that servicing these RIAs will involve dealing with only a limited partner (LP) via the fund. This simplifies paperwork and fund documentation, streamlining administrative processes and reducing complexity. 

By knowing which RIAs manage their own fund of funds, investment sales professionals can efficiently target and engage with advisers, ensuring a smoother and more straightforward service experience while fostering effective partnerships in the private markets sector.

8. Feeder Funds:

In Dakota Marketplace, users can view which RIAs are putting together feeder funds for specific private market managers through the Private Fund Sections. This feature allows investment sales professionals to filter and identify feeder funds associated with particular managers. For example, users can search for all RIA private funds that contain the term “Silver Lake” to identify RIAs investing with Silver Lake. 

This capability is crucial for understanding the investment networks and partnerships within the private markets, enabling professionals to target and engage with RIAs that align with their strategic interests and investment goals.

9. Owners:

Lastly, Dakota Marketplace allows users to view the owners of an RIA and determine whether or not they are a control person. This feature is invaluable for investment sales professionals and potential acquirers, providing insights into the ownership structure and executive leadership of an advisory firm. 

Whether you are considering an acquisition or simply want to get to know the executive leadership better, this information is essential for making informed decisions and building strong, strategic relationships.

Start researching!

In conclusion, the features above of Form ADV data are crafted to give investment sales professional’s tools and detailed insights to better understand RIAs. By leveraging these features, you can streamline your research, make more informed decisions, and build stronger, more strategic relationships with RIAs.

Dakota Marketplace equips you with the tools to efficiently target and engage with the right advisers, ultimately driving better outcomes for your fundraising efforts and contributing to your overall success as an investment sales professional.

Begin analyzing Dakota’s Form ADV data to streamline your fundraising efforts today with a free trial of Dakota Marketplace!