Benjamin 'Tad' Edwards: A Start-Up with Pedigree

"There was a strong following of employees and clients alike that really longed for the old A.G. Edwards way of doing business. For a long time, people talked about it, but being a start-up brokerage in an industry where bigger was necessarily equated with better, it was something of a pipedream," says McBride Waidmann. "Then with all the fallouts and shakeouts, the concept of a boutique brokerage firm seemed just right — in fact a competitive necessity. It became very exciting to move ahead with creating a firm that brought that tried-and-true brand back to life."

While Edwards has patterned Benjamin F. Edwards & Co. after his family's old firm, there are some clear differences. A.G. Edwards, which dated back to the time of Abraham Lincoln, was a public company. The start-up, which Edwards calls an "independent hybrid model," is being funded by family members, employees and others. One other huge distinction: the outsourcing of its information technology and clearing and custody operations. "We made that decision early on," he says. "We're able to replicate the old model — only more efficiently." Pershing provides operational support for the company.

While hundreds of advisors have queried Edwards about Benjamin F. Edwards & Co., he declines to disclose what kind of footprint he has in mind for the brokerage. A.G. Edwards had over 700 offices when it merged with Wachovia in 2007.

"Our goal is to find quality people from any firm — people who believe in the kind of culture we want to establish. It's not all about putting pins on the map," he says. "We're really driven by the quality of the people and the quality of leadership, no matter the city or community. It's about the right leader to build around. It's possible we won't be in any major money center; it's possible we'll be in all of them. We just don't know."

McBride Waidmann, who served as chief of staff to Edwards' father when he was CEO, says Tad Edwards is building on his dad's legacy — demonstrating the "shared values" of the leadership team and surrounding himself with strong leaders "where everyone has a sense of their own responsibility in the big picture." Further, she adds: "When the opportunity arose to do this all over again, it was a dream come true. Tad would have kicked himself had he not taken the opportunity. You can't look back on your life and wonder: What if?"

Edwards named the firm after his father, Benjamin F. Edwards III, who headed A.G. Edwards for four decades. He died in April of prostate cancer.

At the funeral service, Tad Edwards talked about how his dad never used a private side door to get to his office, preferring to enter through the lobby like everyone else. Asked why, his father told him that he wanted to give the receptionist a hug and ask how the security guard's family was doing.

As Edwards notes: "Maybe that's one of the distinctive qualities of Edwards — that top leadership cares for people from all walks of life. Dad let people know how much they were appreciated. Today, we have the same culture here. Everyone here, I think, feels like they are part of the future. If you trust the people you work with, which we do, and you have the same vision for the future, you have a lot of fun together and you can be successful. Everyone wins."