Interchange Capital Partners is a registered investment adviser primarily based in Pittsburgh, Pennsylvania. We are organized as a limited liability company ("LLC") under the laws of the State of Delaware. We have been providing investment advisory services since June 2020. We are primarily owned by Ahmie E. Baum, CFP® and Brian D. Baum, CFP®.
Interchange Capital Partners offers a variety of advisory services, which include financial planning, business consulting, and investment and wealth management services. Prior to Interchange Capital Partners rendering any of the foregoing advisory services, clients are required to enter into one or more written agreements with Interchange Capital Partners setting forth the relevant terms and conditions of the advisory relationship (the "Advisory Agreement"). The following paragraphs describe our services and fees. Refer to the description of each investment advisory service listed below for information on how we tailor our advisory services to your individual needs. As used in this brochure, the words "The Firm," "we," "our," "it," and "us" refer to Interchange Capital Partners and the words "you," "your," and "client" refer to you as either a client or prospective client of our firm.
Investment Management and Wealth Management Services Interchange Capital Partners provides investment and wealth management services which include a broad range of financial planning and consulting services as well as discretionary and/or non- discretionary management of investment portfolios.
Interchange Capital Partners tailors its advisory services to meet the needs of its individual clients and seeks to ensure, on a continuous basis, that client portfolios are managed in a manner consistent with those needs and objectives. Interchange Capital Partners consults with clients on an initial and ongoing basis to assess their specific risk tolerance, time horizon, liquidity constraints and other related factors relevant to the management of their portfolios. Clients are advised to promptly notify Interchange Capital Partners if there are changes in their financial situation or if they wish to place any limitations on the management of their portfolios. Clients can impose reasonable restrictions or mandates on the management of their accounts if Interchange Capital Partners determines, in its sole discretion, the conditions would not materially impact the performance of a management strategy or prove overly burdensome to the Firm's management efforts.
If a client selects to participate in Interchange Capital Partners' discretionary investment and wealth management services, Interchange Capital Partners requires clients to grant our firm discretionary authority to manage the client account(s). Subject to a grant of discretionary authorization, Interchange Capital Partners will have the authority and responsibility to formulate investment strategies on the client's behalf. Discretionary authorization will allow Interchange Capital Partners to determine the specific securities, and the amount of securities, to be purchased or sold for the client account(s) without obtaining the client's approval prior to each transaction. Discretionary authority is typically granted through the Advisory Agreement each client signs with Interchange Capital Partners, a limited power of attorney, or trading authorization forms.
Interchange Capital Partners may also offer non-discretionary investment and wealth management services. If a client selects to enter into non-discretionary arrangements with Interchange Capital Partners, Interchange Capital Partners must obtain the client's approval prior to executing any transactions on behalf of the client's account(s). Clients have an unrestricted right to decline to implement any advice provided by Interchange Capital Partners on a non-discretionary basis.
4 Interchange Capital Partners may invest client assets according to one or more model portfolios developed by Interchange Capital Partners. These models are designed for investors with varying degrees of risk tolerance ranging from a more aggressive investment strategy to a more conservative investment approach. The Firm may use one or more independent investment managers ("Independent Managers") to manage a portion of your account on a discretionary basis, as described in more detail below. Use of Independent Managers As mentioned above, Interchange Capital Partners selects certain Independent Managers to actively manage a portion of its clients' assets. Interchange Capital Partners evaluates a variety of information about Independent Managers, which includes the Independent Managers' public disclosure documents, materials supplied by the Independent Managers themselves and other third-party analyses it believes are reputable. To the extent possible, the Firm seeks to assess the Independent Managers' investment strategies, past performance and risk results in relation to its clients' individual portfolio allocations and risk exposure. Interchange Capital Partners also takes into consideration each Independent Manager's management style, returns, reputation, financial strength, reporting, pricing and research capabilities, among other factors.
Interchange Capital Partners continues to provide services relative to the discretion of the Independent Managers. On an ongoing basis, the Firm monitors the performance of those accounts being managed by Independent Managers. Interchange Capital Partners seeks to ensure the Independent Managers' strategies and target allocations remain aligned with its clients' investment objectives and overall best interests.
Interchange Capital Partners has entered into a contractual relationship with Dynasty Financial Partners, LLC ("Dynasty"), which provides Interchange Capital Partners with operational and back office support including access to a network of service providers. Through the Dynasty network of service providers, Interchange Capital Partners has access to discounts on reporting, custody, brokerage, compliance and other related services. Dynasty charges a "Core Fee," which, unless otherwise disclosed, is included in Interchange Capital Partners 's annual investment management fee, as described in Fees and Compensation section below. In addition, Dynasty's subsidiary, Dynasty Wealth Management, LLC ("DWM") is an SEC registered investment adviser, which also provides access to a range of investment services including: separately managed accounts ("SMAs"), mutual fund and ETF asset allocation strategies, and unified managed accounts ("UMAs") managed by external third party managers (collectively the "Investment Programs"). Interchange Capital Partners and its clients may separately engage the services of Dynasty and/or its subsidiaries to access the Investment Programs. Under the UMA program, Interchange Capital Partners will maintain the ability to construct a single portfolio by selecting the specific, underlying investment vehicles and asset allocations. Under the SMA program,

Interchange Capital Partners has the ability to construct a single portfolio by selecting the specific, underlying manager, investment vehicles and/or asset allocations. Interchange Capital Partners may receive more advantageous pricing in the future as assets allocated to the Investment Programs increase. This arrangement presents a conflict of interest because Interchange Capital Partners is incentivized to allocate client investment assets to the Investment Programs in order to receive more advantageous pricing from Dynasty.
DWM sponsors an investment management platform (the "Platform") that is available to the advisers in the Dynasty Network, such as Interchange Capital Partners . Through the Platform, DWM and Dynasty collectively provide certain technology, administrative, operations and advisory support services that allow advisers to manage their own portfolios and access independent third-party managers that provide discretionary services in the form of traditional managed accounts and investment models. Advisers can allocate all or a portion of client assets among the different independent third-party managers via the Platform. Advisers may also use the model management feature of the Platform by 5 creating their own asset allocation model and underlying investments that comprise the model. Through the model management feature, advisers may be able to outsource the implementation of trade orders and periodic rebalancing of the model when needed.
Interchange Capital Partners will maintain the direct contractual relationship with each client and obtain, through such agreements, the authority to engage independent third-party managers, DWM and/or Dynasty, as applicable, for services rendered through the Platform in service of such client. Interchange Capital Partners may delegate discretionary trading authority to DWM and/or independent third-party managers to effect investment and reinvestment of client assets with the ability to buy, sell or otherwise effect investment transactions and allocate client assets. If a client is participating in certain Investment Programs, DWM or the designated manager, as applicable, is also authorized without prior consultation of Interchange Capital Partners or the client to buy, sell, trade or allocate such client's assets in accordance with the client's designated portfolio and to deliver instructions to the designated broker-dealer and/or custodian of such client's assets. Financial Planning and Business Consulting Services Interchange Capital Partners offers financial planning services which typically involve providing a variety of advisory services to clients regarding the management of their financial resources based upon an analysis of their individual needs. These services can range from broad-based financial planning to consultative or single subject planning. If you retain our firm for financial planning services, we will meet with you to gather information about your financial circumstances and objectives. We may also use financial planning software to determine your current financial position and to define and quantify your long-term goals and objectives. Once we specify those long-term objectives (both financial and non-financial), we will develop shorter-term, targeted objectives. Once we review and analyze the information you provide to our firm and the data derived from our financial planning software, we will deliver a written plan to you, designed to help you achieve your stated financial goals and objectives. These services are available on a stand-alone basis, or they may also be rendered in conjunction with investment portfolio management as part of a comprehensive wealth management engagement.
Financial plans are based on your financial situation at the time we present the plan to you, and on the financial information you provide to us. You must promptly notify our firm if your financial situation, goals, objectives, or needs change.
You are under no obligation to act on our financial planning recommendations. Should you choose to act on any of our recommendations, you are not obligated to implement the financial plan through any of our other investment advisory services. Moreover, you may act on our recommendations by placing securities transactions with any brokerage firm.
Interchange Capital Partners also offers business consulting services which typically involve transition related services, including but not limited to, enterprise valuation, business value optimization, owner personal financial readiness, preparing the business for transition or sale, cash flow modeling for owners, and providing planning services for the owner(s) and family.
Business clients and their owners are under no obligation to act on our recommendations. Should the business or its owners choose to act on any of our recommendations, they are not obligated to implement them through any of our other investment advisory services.
Types of Investments We offer advice on equity securities, corporate debt securities (other than commercial paper), certificates of deposit, municipal securities, variable annuities, mutual fund shares, United States government securities, options contracts on securities, money market funds, REITs, structured notes, 6 ETFs, interests in partnerships investing in real estate and interests in partnerships investing in oil and gas interests. Additionally, we may advise you on various types of investments based on your stated goals and objectives. We may also provide advice on any type of investment held in your portfolio at the inception of our advisory relationship.
Where appropriate, the Firm also provides advice about any type of legacy position or other investment held in client portfolios. Clients can engage Interchange Capital Partners to manage and/or advise on certain investment products that are not maintained at their primary custodian, such as variable life insurance and annuity contracts and assets held in employer sponsored retirement plans and qualified tuition plans (i.e., 529 plans). In these situations, Interchange Capital Partners directs or recommends the allocation of client assets among the various investment options available with the product. These assets are generally maintained at the underwriting insurance company or the custodian designated by the product's provider. Please refer to the Item 8 section below for additional disclosures on this topic.
Since Interchange Capital Partners' investment strategies and advice are based on each client's specific financial situation, the investment advice our Firm provides to one client may be different or conflicting with the advice we give to other clients regarding the same security or investment.
Assets Under Management As of December 31, 2022, we provide continuous management services for $217,139,540 in client assets on a discretionary basis, and $0 in client assets on a non-discretionary basis. We also manage $200 in client assets on a non-continuous basis.