"Those guys (Iconiq) truly “get it," says Lorenzo Esparza, founder and CEO of Manhattan West - a JPMorgan breakaway in Los Angeles seeking to build a major venture investing firm as part of an RIA wealth manager.
"The reason Iconiq has gotten so big is that they are investing in the next big thing – Facebook (Meta) for example – before they ever go public. It was a major early investor in both, which were acquired by Doordash and IBM, respectively. Iconiq also scored big on M&A deals involving two companies, Wolt, a restaurant food delivery business, and Turbonomic, an application resource management firm. See: How the Facebook IPO is creating the mother of all RIAs, Iconiq, and what an in-your-face it is for Wall Street David Lee now manages most of the Zuckerberg fortune outside the Iconiq RIA. All had their initial public offerings last year. Iconiq Capital grew from $23 billion in June of 2020 to more than $80 billion after a bunch companies had their IPOs and drove huge capital gains in client-owned pre-IPO shares.ĭivesh Makan, the Morgan Stanley stockbroker for Facebook co-founder Mark Zuckerberg, co-founded the breakaway San Francisco RIA in 2011 and owned big stakes in 11 firms - including Honest, Robinhood, Gitlab and Warby Parker. Iconiq Capital seems to prove it can be done - dodging conflicts at every juncture - but seemingly delivering extraordinary returns by using client expertise, capital and connections in a virtuous circle on their behalf. What if those "distributing brokers" got organized and value-added enough to use the power of direct relationships with investors to build out financing machinery for the most lucrative deals. We know that the profit centers at the investment banks are related mostly to trading, financing and deal-making and the retail brokerage forces were almost an afterthought - a means of distribution.
Brooke's Note: I have always wondered just how far the Wall Street breakaway movement could go.
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