In our Business Brief series, we take a closer look at a firm to find what makes it tick.
In this edition, the CEO of Miami-based asset manager AdCap, Daniel Canel, talks about staying flexible and venturing into new markets.
- Founded: 2009
- Headquarters: Miami, Florida
- AUM: $1.1 billion
- Number of clients: 8,400 retail and 1,200-plus institutional
- Number of advisors/brokers: 138
- Client base: Argentina, Colombia and Peru
What do you better than rivals?
From day one, we gathered some of Latin America’s most experienced leaders in financial services with the aim of meeting the true needs of the region’s sophisticated investors and emerging companies. One of our differentiators is that all of our team members are involved in the day-to-day operations of the company.
For a company of our size, we also have very unique and established management procedures and information systems that facilitate the growth of a multi-market, multi-product platform.
Also, particularly after the region’s different tax amnesties, we have a robust platform of established entities and agreements to allow external financial advisors to channel their clients’ flows and/or execute their business through our network.
Running AdCap is like running: an orchestra. Every instrument contributes to the quality of the final product.
What company do you admire and why?
Internationally, Goldman Sachs; regionally, XP Securities – in both cases for their excellence of execution, culture and values.
How is your use of third-party mutual funds evolving?
In terms of external asset managers, there is room to grow by offering a single platform for clients locally and in the US. We see most opportunities to grow outside the Lima region.
In Argentina, in terms of external asset managers, a tougher regulatory environment will generate a consolidation in the industry, giving us the opportunity to grow our external distribution platform significantly.
Providing a robust IT platform and an integrated products portfolio are key to success.
Which movie or book best describes your life at AdCap?
The movie is Rocky, for his determination. Cristiane Correa’s book Dream Big [about three Brazilian businessmen] shows that opportunities are endless.
What are your growth plans for the next year?
In our asset management, we are moving away from a closed platform model to an open one, where each product manager will be responsible for distribution and product portfolios.
In Argentina, we are in the process of launching new asset management products, such as funds that hold international assets, retirement funds (similar to 401k funds) and closed-end funds that invest in alternative assets (credit, real estate and others).
In terms of wealth management, and as a result of the tax amnesty and the unwinding of the FX regulations, the amount of AUM that we will invest locally will soon increase by four or five times. That is a great opportunity that we are preparing to seize.
By Daniela Sirtori-Cortina
AdCap is a Latin American group with big ambitions. As a financial services firm targeting corporate and merging institutional and individual clients, it has been steadily expanding its presence since its launch in 2009 and it offers asset as well as wealth management services.
Today it has a presence in Uruguay, Argentina, the US, Peru and most recently Colombia. It entered the latter in 2015 after acquiring a majority stake in local advisory group Asesores en Valores de Colombia.
After acquiring the remaining shares of AdCap Colombia last year, the firm is now gearing up to grow its wealth management practice in multiple cities in that country, with Canel hoping to take advantage of the growing demand for diversified investment solutions.
‘We should remember that the bulk of Colombian assets today are invested in money markets,’ he said. ‘We need to capitalize on the fact that we are the only local firm with global sales and trading unit capabilities.’