Escaping the Private Equity Trap: One Advisor’s Journey to Independence

The Hard Truth About Selling Out—and Why I Chose a Different Path

Eight years ago, I sat in a conference room that would become the setting for one of the most jarring wake-up calls of my career. The air was thick with anticipation, the kind that makes your heart beat a little faster—not out of excitement, but out of a gnawing uncertainty you can’t quite name.

Back then, I was on a promising trajectory. I was advising clients, mentoring new advisors, and knee-deep in my Certified Financial Planner coursework. I believed I was part of something meaningful—a firm built on trust, relationships, and the shared goal of doing right by our clients.

Then, everything changed.

The Day the Dream Was Sold

The CEO walked in, flanked by executives and consultants, all wearing the same rehearsed smiles. The announcement was delivered with the polish of a TED Talk: our firm had been acquired by a private equity group. We were told we’d be part of a new national brand—a roll-up of insurance firms under a shiny new RIA. There would be more resources, more flexibility, equity for those who stayed, and the promise of new career paths.

It sounded exciting. The pitch was sleek, the promises bold and optimistic. For a moment, I almost believed them.

But reality has a way of revealing itself—fast.

The Unraveling: When Promises Turn to Dust

Within 90 days, the cracks started to show. The transition was chaos. We left our broker-dealer and entered the RIA world, but instead of support, we got squeezed. Advisors weren’t paid to go through the transition; most of us paid out of pocket just to keep serving our clients. The grand vision faded, replaced by confusion and resentment.

I remember walking into the office each morning, feeling the mood darken. The excitement was gone. In its place was a tangible heaviness—anger, confusion, and a sense of betrayal. The complaints grew louder, the camaraderie faded, and the culture we’d built over decades began to unravel before our eyes.

It was gutting. I watched as 20 years of trust and goodwill were dismantled in less than six months. The very people who built the firm were left behind, abandoned by leadership that either didn’t care or didn’t know how to care. I had never seen so many professionals so deeply disheartened.

The Fallout: Seven Years of Loss

Fast forward seven years. The private equity group? Still growing. The firm we once believed in? Unrecognizable.

Recently, I reached out to old colleagues. Their stories were heartbreaking. What began as a hopeful new chapter had turned into a slow-burning tragedy—filled with loss, stress, and disappointment. Many decided to leave or got pushed out, but not before enduring mistreatment and missed opportunity.

And here’s the truth: I’m grateful.

Grateful that I made the hard decision to go another way. Grateful to have avoided seven years of watching my values erode. Grateful that Sterling Edge Financial has grown into something deeply aligned with the principles that matter to me—and to the people I serve.

Why I Chose Independence

When I left, I didn’t just walk away from a job. I walked away from a system that put profits over people, that saw clients as numbers and advisors as assets to be squeezed. I chose to build something different—a firm where integrity, transparency, and client care aren’t just marketing slogans, but the foundation of everything we do.

Going independent was terrifying. There were moments of doubt, sleepless nights, and the ever-present fear of the unknown. But there was also hope—a chance to reclaim my purpose, to serve clients the way I knew was right, and to build a practice that reflected my values.

And let me tell you: independence isn’t just about autonomy. It’s about rediscovering the joy of this profession. It’s about having the freedom to put clients first, to design solutions that fit their lives—not the bottom line of some distant parent company. It’s about building real relationships, free from the pressure to push products or meet arbitrary quotas367.

The Industry’s Dirty Secret

Today, private equity is everywhere. Roll-ups are happening across the wealth management space, and many advisors are being sold the same story I once believed: more resources, more freedom, more upside.

But most of those deals don’t end well for the advisor. Industry insiders are starting to echo what I lived: many of these transitions are disastrous, leaving advisors exhausted, disillusioned, and sometimes burned beyond repair3713.

Here’s the hard part: a lot of firms are being sold not out of strategic brilliance, but out of necessity. The managing partners are tired. They want to cash in, retire, or shift the risk off their shoulders. In doing so, they light a match to the very relationships and cultures that built their success.

And where does that leave you—the advisor still trying to do right by your clients?

There’s Another Way—And You Deserve to Know About It

At Sterling Edge, we’re building something different. Not perfect. Not utopian. But grounded in integrity, built around human connection, and designed to empower advisors—not exploit them.

If you’re reading this and feel like you’re at a crossroads, know this: you’re not alone. There are ways to go independent. There are ways to preserve your values and find community. You just may not have been shown them yet.

If you’re thinking about making a change—if you’re watching your firm change around you and wondering what’s next—reach out. I’m happy to share what I’ve learned, connect you with resources, or simply be a sounding board.

No pitch. No pressure. Just a real conversation—advisor to advisor.

Because in the end, this business isn’t just about assets, platforms, or contracts. It’s about people. And the more we remember that, the better off we all are.

Warm regards,

Kit Lancaster, CFP®
Founder, Sterling Edge Financial