Milwaukee-based Northwestern Mutual Life Insurance Co. has invested an undisclosed amount in Mount Kisco, New York-based ClientWise, the company announced today.
Northwestern Mutual confirmed it has taken majority ownership of ClientWise, which offers business and executive coaching and consulting for financial professionals. The transaction closed Jan. 2.
The investment was made from Northwestern Mutual’s general account, not the company’s Future Ventures arm, a $50 million fund formed last year that focuses on investing in financial technology startups, said Christian Mitchell, vice president of investment products and services at Northwestern Mutual.
“ClientWise has been working with a number of our advisors for years and we’ve been engaging in ClientWise and we arrived at the conclusion that it was time for us to take the next step,” Mitchell said. “We really believe the services ClientWise offers could really benefit the industry and clients in general.”
ClientWise, which lists 28 employees on its website, counts Barron’s, Merrill Lynch Wealth Management and JPMorgan among its clients. It offers coaching solutions, programs and presentations, and research and content for financial advisory firms.
ClientWise will continue operating autonomously under the leadership of founder and chief executive officer Ray Sclafani, and will begin coaching Northwestern Mutual financial advisors. With the additional capital, ClientWise will be able to bring to market more practice management tools and resources and undergo strategic growth, Northwestern Mutual said.
“As more of our advisors build their wealth management practices, we want to ensure they have the strategic and operational resources they need to excel in serving their clients and running their businesses,” said Greg Oberland, president of Northwestern Mutual. “Our investment in ClientWise, which has a strong track record of success in coaching advisors to grow and advance their practices, allows us to bring this expertise to more of our team, while also supporting ClientWise in growing its own industry presence.”
Northwestern Mutual, a Fortune 500 firm which offers life insurance and financial planning services via independent financial advisors, has $250.4 billion in assets and $28.2 billion in revenues.
“Northwestern Mutual’s financial advisors stand at the epicenter of a number of important trends, including growing demand for professional financial advice alongside a digitally-driven client service experience,” Sclafani said. “The advice landscape presents clear opportunities and near-term challenges, including the need to optimize firm operations, build scale and instill best practices so that advisors can deliver advice across their client base.”
