Model Capital Services: A Private-Labeled Wealth Management Platform

“Model Capital Management LLC was established in 2012 and began managing assets for other wealth managers in the following year,” begins Roman Chuyan, president and chief investment officer of the firm. The Boston-based company initially developed its Model Capital Services (MCS) platform to assist wealth managers and financial advisors in automating portfolio management, rebalancing, trading, and performance reporting, enabling them to enhance their advisory practices. “Today, MCS has grown into a stand-alone private-labeled wealth management platform, with its dedicated team and a compelling, intuitive, and integrated functionality,” continues Chuyan.

The MCS wealth management platform reduces cost by streamlining dozens of advisors’ tasks, elevates their client service to a new level, and helps advisors grow their practice by engaging, attracting, and converting prospects. “We have incorporated multiple tools within our platform that help advisors scale their business by engaging and onboarding new customers,” says Chuyan. The platform also includes the client portal where clients can log in to view a wealth of performance and risk characteristics of their portfolio and interact with their financial advisor.

Using a variety of tools such as the Risk Questionnaire and the Financial Goals, financial advisor can start a conversation with a prospective client who is then invited to create their account and log into the portal to access information typically available only to advisors.

MCS has grown into a stand-alone private-labeled wealth management platform, with its dedicated team and a compelling, intuitive, and integrated functionality

The entire workflow, from interacting with a prospect to opening the brokerage account (with some custodians) can be carried out without manual intervention from the advisor and saves the prospect time by single point of data entry. When the prospect is ready to invest, the portal enables the advisor to send them all the required agreements, including a custom Investment Policy, via email, which can be signed electronically. The system then provides executed copies to all the parties involved, including the firm’s compliance department. The MCS platform also generates customizable performance reports including risk metrics and graphs on a regular basis for each client account, helping the advisor and their clients analyze and track their investments.

With such compelling functionality, Model Capital has seen great interest from wealth managers across the country. For example, an independent registered investment advisor (RIA) firm with offices in the Northeast that needed to automate portfolio management and other time-consuming tasks in order to focus on serving clients and was unhappy with the “bare-bones” functions available from its custodian contracted with Model Capital. Another Texas wealth manager who was breaking away from a broker-dealer and was looking for a platform to grow its advisory practice, also chose Model Capital’s solution over higher-priced competitors.

The MCS platform is very cost effective even for small independent RIAs, and scales well for larger wealth managers and broker-dealers. Model Capital is now focused on integrating additional custodians. “I invite any wealth manager who is considering implementing or changing their platform, to take a look at Model Capital, and I am confident that we will come out on top in terms of return on their investment,” concludes Chuyan.