In this episode of the Trusted Adviser Podcast, Rob Pyne speaks with Terry Dillon, CEO of Shadforth, about the evolution of one of Australia’s largest advice firms and what it takes to build a modern, scalable, client-first business. Terry shares the origin story of Shadforth, the strategic reset following institutional ownership and the Royal Commission era, and how the firm has positioned itself for long-term growth. The conversation explores client strategy, intergenerational wealth transfer, advisor development, technology transformation, and Shadforth’s ambition to become a defining pillar of financial advice in Australia.
LISTEN
SHOW NOTES
Topics Discussed
- History and evolution of Shadforth
- The formation of Shadforth through the merger of 13 successful advice firms
- Leadership decisions that reshaped the business post-acquisition
- Building trust and client advantage in an institutional ownership model
- Defining and serving the core high-net-worth client segment
- The shift toward ongoing, relationship-driven advice models
- Strategies for intergenerational wealth transfer and family engagement
- Developing and retaining advisor talent through a “grow your own” model
- Equity participation and long-term incentives for advisors
- The role of technology in delivering scalable, live financial advice
- Organic growth versus acquisition-led expansion strategies
- Shadforth’s vision to become a national pillar in financial advice
Episode Highlights
(Timestamps are approximate)
- [00:00] – Introduction to Terry Dillon and Shadforth
- [01:07] – The origin story. 13 firms merging into one national business
- [03:19] – The impact of the GFC on early alignment and decision-making
- [04:36] – Leadership reset post-2018 and redefining long-term strategy
- [08:23] – Turning institutional ownership into a competitive advantage
- [10:23] – Snapshot of Shadforth today. Scale, clients, and revenue
- [12:15] – Defining the ideal client and value proposition
- [14:04] – Why Shadforth prioritises ongoing advice over transactional work
- [20:49] – Intergenerational wealth and the “family advice guarantee”
- [25:16] – Building a live financial planning experience through technology
- [30:58] – Developing advisors through a graduate-first model
- [35:36] – Equity, incentives, and retaining top advisor talent
- [38:57] – Acquisition strategy and what Shadforth looks for in partners
- [45:07] – The ambition to become a defining pillar in advice
- [48:14] – What success looks like over the next 10–20 years
Quotes
“Never waste a crisis.” – Terry Dillon
“If we’re going to be together, it has to be to the benefit of clients.” – Terry Dillon
“Everyone is better with an ongoing relationship with an advisor.” – Terry Dillon
“We’re not trying to charge less. We’re trying to be more meaningful and add more value.” – Terry Dillon
“We’re actually in the business of making and keeping 50-year service promises.” – Terry Dillon
“Our real strength is 100 great advisors all agreeing on the big things.” – Terry Dillon
“You can’t think like an owner and be in and out in five years.” – Rob Pyne
Key Takeaways
- Shadforth was formed through the merger of 13 high-performing independent firms in 2007–08
- The business was sold for just under $700 million in 2014
- Terry Dillon became CEO in 2018 and led a strategic reset focused on long-term client value
- The firm serves over 11,000 families and manages around $20 billion in assets
- Shadforth focuses on clients with $1M to $10M, primarily professionals and executives
- Ongoing advice is central to the business model, with minimal focus on one-off engagements
- A “family advice guarantee” supports intergenerational client retention
- 93 of 97 advisors were developed internally through a graduate program
- Advisor equity and long-term incentives are critical for retention and alignment
- The firm is investing heavily in technology, including a live financial planning interface
- Growth is driven by strong organic performance, supported by selective acquisitions
- Shadforth aims to double in size by 2030 and is thinking in terms of 10x scale long-term
- The long-term vision is to become a nationally recognised, professional services brand in advice
Resources & Links
- The Trusted Adviser: https://thetrustedadviser.com.au/
- Shadforth: https://www.shadcivil.com.au/
- Connect with Rob Pyne on LinkedIn
- Connect with Terry Dillon on LinkedIn
- Follow The Trusted Adviser Podcast
Show notes and transcript
For the full show notes and transcript from this episode, head to the episode page on The Trusted Adviser Website here.