NFP Managing Principal

National Financial Partners Is Vulnerable - Barron's

This article is grossly incomplete and materially mis-represents NFP's balanced business model and results. The companies strategy both in terms of aquired business segments within financial services and the fundament results from these segments is a resonding success in every way. As an investor, I would like to find as many companies as
I can that provide a platform that so closely aligns shareholder and acquired firm interest as well as NFP. Their model of capitalizing 50% of the acquired companies P&L, while providing a management agreement for the other 50%, assures that the acquired firm principals have ongoing significant "skin" in the game and are incented to grow their firms to protect and grow the future value of their retained, non-capitalized share. In addition, the horizontal nature of the company (over 200 business units) provides wonderful diversification and broad distribution.