Morton Capital takes $ 2 billion PPP loan, then claims RIA biz has held up well
Calabasas, Calif., Based Morton Capital Management recently revealed it took out a government-backed coronavirus relief loan out of “ abundance of caution, ” but the $ 2 billion RIA then boasted a “ as usual ” message in a white paper.
“ In an abundance of caution and due to the uncertainty of the overall economic impact of the COVID-19 pandemic, MCM received a Paycheck Protection Plan (‘P3’) loan through the Small Business Administration in conjunction with the relief afforded by the CARES Act, ”the company wrote in the May 31 filing of its Form ADV.
Morton did not disclose how much he received, nor was it clear on the record whether the company had used the money. The firm did not respond to requests for comment.
Meanwhile, according to a June 11 white paper that listed Stacey McKinnon, COO of Morton Capital, as a co-author, the shift to working from home has been “pretty close to ‘business as usual.'” Co-authored by Matt Sonnen of RIA PFI Advisors, the 12-page paper is called “The New RIA Workplace: Will Covid-19 Forever Change the Way We Work?”
“Customers are still being served: accounts are still being opened, wire transfers are still being sent, model wallets are still being implemented and rebalanced,” McKinnon and Sonnen said in the comments. opening paragraphs. “Even RIA owners who have always been the strongest opponents of remote working had to admit that this forced experiment turned out better than anyone could have imagined.
The co-authors also said that while some RIAs were ‘caught off guard’ in terms of technology, the RIA industry had been ‘luckier than many physical establishments that needed to shut their doors completely. during this unprecedented period. ”
“ With most custodial systems, financial planning tools, CRMs, performance reporting technology, and data file servers now in the cloud, many RIAs haven’t missed a beat when employees turned on their home internet-connected computers and logged into their typical applications, ‘the newspaper continued.
According to its website, Morton Capital manages the assets of 980 families and institutions and that of these relationships, over 25%, exceeds a decade.
Other members of the trust network who have tapped PPP loans include $ 4.9 billion RegentAtlantic, which borrowed $ 1.19 million, and $ 2.7 billion Sand Hill Global Advisors, which also borrowed a undisclosed amount.