Peter Bower, Chairman & CEO, CIO, Riverplace Capital Inc.

Peter Bower, Chairman and CEO of Riverplace Capital Inc. talked to Invest: about how being a registered independent adviser helps the company stand out from larger players in the financial sector. He also discussed how the company is exploring the use of artificial intelligence, and the importance of building relationships with clients.

What were some major milestones for Riverplace Capital in Jacksonville over the past year?

We accelerated our growth rate, increased our assets under management and our client acquisitions. In addition, we implemented a new digital marketing strategy. We also have a new website and added a new group of services that are grouped under the “family office services heading.”

We set up a separate division to focus on those services to serve people who need or want more inclusive help with everything related to their finances, lifestyle, and perhaps even health issues. We can arrange for all their bookkeeping to be done, their bills to be paid, and if somebody has health issues, we can arrange for an entire array of deliverables, including in-home health services. Some of these services are through partners rather than directly through us, but we have extensive experience working with them.

What are the key factors that set Riverplace apart from competitors in the investment management industry?

We are in a broad category of registered investment advisers (RIAs), which sets us apart from large companies like Wells Fargo, Morgan Stanley, or Merril Lynch. This category has become increasingly accepted as an area to get financial services to the point that it is the leading category. What sets us apart is the comprehensive number of services that we offer and the fact that we make our own investment decisions. We do not use other providers on the investment side. We do all our research and make our own decisions instead of using intermediaries. We are not liaisons but the provider.

What is the importance that Riverplace Capital places on building relationships with the clients?

The opportunities and the landscape change, and they are volatile. To be successful, you need to be able to navigate a variety of environments. Having a good relationship and an understanding between provider and client help ensure that you see strategies through and get the results. A lot of what we do requires patience, so relationship-building is a part of being able to deliver on the expectations of clients over time. 

What are some key investment strategies that Riverplace uses to benefit its clients?

We adapt our strategy to clients’ desires and needs instead of putting everybody into a cookie- cutter strategy. We have some baselines and operate a large part of our investments in large-cap, growth companies. If you are seeking to increase the value of your investments or increase your wealth, you need to invest in companies that are increasing their value. We also have a medium-sized company strategy for people who are a little more aggressive. Those companies have more opportunity to grow just because they are not as large, and there is a lot of value in that area that has been overlooked, so we find it to be a strong area.

Additionally, one of our biggest categories is simply providing income with growth. As people retire or sell a business, they go on to live off what they have earned. We provide that income. Moreover, with inflation in the background, that must grow as well. People want some good growth to keep up and to provide a legacy to their heirs or to charitable institutions, which is our challenge.

How does Riverplace engage with clients to ensure that their needs and expectations are met?

We meet with them at the outset and even do a financial plan for free if they allow it. We also meet with them on a quarterly basis and try to keep in regular contact with them. I write a weekly blog that goes out to everybody, so they know what our thinking is, and how we are responding to various events. We write a more in-depth quarterly newsletter discussing the environment, what our strategy is, and what we are going to do about it.

We also have several portfolio managers who are each responsible for a set of clients. They keep in close touch with clients, answer any questions, deal with new issues and needs that come up, and expand on the services that they may want to get from Riverplace Capital. We have a website where they can look at their statements and the information we put out. Additionally, when they pick up the phone and want to talk to somebody who manages their account, they will not talk to an intermediary. They will talk to the person working for them.

What kind of technological advancements has Riverplace integrated into its operations to enhance client services?

We have been large users of technology from the outset, and we continue to employ it as technology has evolved. We have some of the latest management software out there, much of our communications are now digital, and we get most of the information that we seek through digital sources.

We have also played around with artificial intelligence, but that is still nascent. We are trying to figure out its real value in helping us and our management of portfolios. In terms of uses, we have played around with it in writing, and it is interesting to see what various services come up when we throw a topic or do a search with that technology. It is still experimental at this point and not fully integrated. Nevertheless, I suspect over time it will get there as there will be deeper uses of artificial intelligence. We are all learning what it is good at and how it can help us. Additionally, it is changing by the day and getting more powerful, so more services will be available to people like us. 

We also work with a company that has given us a great deal more visibility through their digital marketing efforts. We are happy with that. We purposely do not have a machine answering calls as we do not want a digital assistant talking to people. This is about people’s money and lives, so they want to talk to somebody who knows what they are doing and who understands their circumstances, accounts, and needs. 

How do you think that artificial intelligence will impact the workforce in professional services?

It depends on the industry as some industries will be heavily impacted. It is already making big inroads in the legal profession. It is still nascent, and its capabilities are not nearly as broad as what they will become. Nevertheless, it is gaining importance. In the case of Riverplace, we are excited to try different things, but we are not going to fully adopt it unless it adds real value. 

What are the goals and strategic plans for Riverplace over the next five to 10 years?

We want to add 50% to our assets under management and revenue stream over the next two to three years. We also want to continue building the new family office services division and see that prosper.

We will also continue to add good professionals. We have found that bringing somebody in and training them ourselves with our high standards is better. We have tried to bring in people from other firms and found them lacking in a lot of areas. We have high moral and professional standards in our firm. Build it rather than buy it has been our basic philosophy. Nevertheless, that does not mean that we will not bring in somebody who is exceptional.