2Q19 Earnings Presentation August 28, 2019 For use with the general - PowerPoint PPT Presentation

2Q19 Earnings Presentation August 28, 2019 For use with the general public. 1

Forward looking statements and non-GAAP financial measures Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding our future financial and operating performance, which involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology that conveys uncertainty of future events or outcomes. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results to differ materially from statements made in this presentation, including in relation to our ability to attract and retain advisors, competition in the industry in which we operate, the interest rate environment, shifting investor preferences, our financial performance, investments in new products, services and capabilities, our ability to execute strategic transactions, legal and regulatory developments and general market, political, economic and business conditions. Other potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncert ainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our prospectus dated July 17, 2019 filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, that will be filed following the earnings release to which this presentation relates. All information provided in this presentation is based on information available to us as of the date of this presentation and any forward-looking statements contained herein are based on assumptions that we believe are reasonable as of this date. Undue reliance should not be placed on the forward-looking statements in this presentation, which are inherently uncertain. We undertake no duty to update this information unless required by law. Use of Non-GAAP Financial Information To supplement our financial information, which is prepared and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, we use non- GAAP financial measures: adjusted EBITDA and adjusted net income. The presentation of these non-GAAP financial metrics is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding these non-GAAP measures, including the limitations thereof and reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure, please refer to our earnings release and Form 10-Q. For use with the general public. 2

Key messages for today Mission-driven , client-focused culture with a consistent strategy 1 Attractive and growing market with secular industry tailwinds as demand for fee-based financial advice grows 2 Strong platform asset growth, highlighted by $56.1 billion in platform assets as of June 30, 2019 – an all-time 3 high Results highlighted by strong top and bottom line growth, expanding margins 4 Platform growth augmented by M&A ; closed acquisition of Global Financial Private Capital (GFPC) 5 For use with the general public. 3

We are committed to a mission-driven, client-focused culture Our mission is aligned with advisors and investors Focused on a consistent strategy Fully integrated Personalized and Curated investment technology platform scalable service solutions Guided by strong values And conducted in a culture of compliance For use with the general public. 4

Our continued growth is supported by a strong market opportunity reinforced by industry tailwinds… Advisors are shifting to fee-based practices 4 Large U.S. investor market nearing $100 trillion; Demand for financial advice is growing and $20 trillion served by advisors 1 independent models are gaining share 2 As of December 31, 2017 Independent channel market share 3 Fee-based revenue as a % of total advisor revenues 48% 67% 42% ~21% of total investor net worth is advisor- intermediated Investor Net Worth 40% $96.6T Advisor- Intermediated Assets $20.3T 2017 2022E 2013 2018 1 For illustrative purposes only; not drawn to scale. Source: Cerulli Lodestar U.S. Retail Investor Database. 2 Source: Cerulli, U.S. Intermediary Distribution 2018 and internal estimates. 3 The independent channel includes hybrid RIAs, independent RIAs, independent broker-dealers and insurance broker-dealers. 4 Source: PriceMetrix, The State of Retail Wealth Management, 2016, 2017 and 2018. For use with the general public. 5

…Including the trend of more and more advisors outsourcing % OF ADVISORS SURVEYED WHO SAY OUTSOURCING HELPS DELIVER: 98% of outsourcing advisors surveyed stated they delivered 98% better investment solutions Stronger client relationships 68 % due to outsourcing. Higher acquisition of new clients 67 % 65 % Nearly 9 out of 10 outsourcing Increased client retention advisors surveyed stated that the benefits of outsourcing Increased client referrals 48 % 87% investment management have met or exceeded their expectations. Source: Commissioned study: Impact of Outsourcing, 2019 For use with the general public. 6

We continue to invest to accelerate our growth trajectory Where we are… Where we’re going… Continue building new ~7,900 Increase the advisor base independent, fee-based advisors 1 independent advisor relationships through marketing and salesforce outreach Expand share of wallet from Pursue outside assets $56.1 billion existing advisors held with existing advisors platform assets 1 Deep business consulting Continue to help advisors grow Help advisors grow their designed to help advisors grow and build through business consulting engagements and businesses exceptional platform support sustainable businesses $164 million Expand reach Expand services to new invested in technology to enhance in RIA market, retirement services segments core business capabilities 2 and high-net-worth segment Successful acquisition of Pursue acquisitions Continue to pursue strategic that are accretive and synergistic transactions $3.5B $3.8B platform assets 1 As of June 30, 2019. 2 From January 1, 2015 to June 30, 2019. For use with the general public. 7

We have experienced strong platform asset growth over the past 5 years $ 56.1B 60 50 40 in $ billions 30 20 10 - 2Q14 2Q15 2Q16 2Q17 2Q18 2Q19 For use with the general public. 8

Platform assets – 2Q19 and 2019 YTD $ billion $ billion Platform Platform Market Net flows Market assets from assets from Net flows acquisition acquisition Platform assets at Platform assets at Platform assets at Platform assets at beginning of period period-end beginning of period period-end 13.0% Net Flows as a % of Beginning Assets 1 1 Calculated as Annualized YTD Net Flows divided by beginning of period platform assets as of January 1, 2019. . For use with the general public. 9

Second quarter results highlighted by strong top and bottom line growth 2Q19 2Q18 VPY (dollars in millions, except per share data) Total revenue $104.5 $88.8 17.7% Asset-based 94.3 83.2 13.3% Spread-based 8.8 4.7 86.1% Revenue less cost of revenue $71.3 $59.6 19.5% Asset-based 62.6 54.5 14.9% Spread-based 7.2 4.3 68.2% Adjusted EBITDA $28.6 $22.1 29.2% Adjusted EBITDA margin 27.4% 24.9% 250 bps Adjusted net income $16.6 $15.1 10.2% Adjusted EPS $0.25 $0.23 10.2% For use with the general public. 10