Diversified Partners, Inc.

Diversified Partners, Inc. serves three private limited partnerships as their sole advisory clients, managing roughly $150 million on a discretionary basis. The firm acts as general partner for those partnerships and provides manager selection, coordination of recordkeeping and tax reporting, and allocation and reallocation of assets among external money managers.

The firm’s investment approach emphasizes diversification within the equity asset class by allocating among multiple external money managers (typically four or more) with differing styles and market-cap focuses and rebalancing allocations as market cycles change. DPI selects managers based on distinct methodology, discipline, long-term performance and administrative capacity, and its compensation arrangement is not based on a percentage of assets under management but on flat general-partner arrangements rather than standard AUM fees.

Compared with many peers, the firm discloses several related-party arrangements: an affiliated broker-dealer serves as the exclusive placement agent and receives referral compensation, and the firm is related to entities that provide retirement-plan administration and insurance services. The brochure also discloses a prior SEC enforcement order concerning the firm’s principal related to mutual fund share-class selection and remediation, and notes that the principal spends a material portion of time on non-investment-advisory activities.