HOME INTRODUCTION METHODOLOGY 6 Meridian Abacus Planning Group Access Wealth Affiance Financial All Star Financial Altium Wealth Management Annex Wealth Management Ashton Thomas Private Wealth The Future is Bright Aurum Wealth Management Avier Wealth Advisors BCS Wealth Management Belpointe Asset Management Birchwood Financial Partners Bridgeworth Canal Capital Management Cardan Capital Partners WHERE ARE THEY BASED? Century Wealth Management Concentus Wealth Advisors Delegate Advisors Ellenbecker Investment Group Family Office Research Financial Services Advisory Fragasso Financial Advisors Girard Advisory Services Heron Wealth Huber Financial Advisors Intellectus Partners Keebeck Wealth Management Securing a strong succession plan LVW Advisors Madison Wealth Management Mainstay Capital Management Monument Wealth Management MRA Associates Omnia Family Wealth Payne Capital Management Purus Wealth Management Rhame & Gorrell Wealth Management RTD Financial Advisors Sowell Management Services Spotlight Asset Group BEST OF DIVERSITY Stearns Financial Group StratWealth Syntal Capital Partners The Joseph Group Capital Management The Mather Group The Pinnacle Financial Group The Wealth Consulting Group Verdence Capital Advisors BEST OF GREEN POLICY Vision Capital Management Woodmont Investment Counsel editorial team
CONTENTS
Welcome to the first ever RIA Future 50! The RIA Future 50 firms represent a group of finance professionals who are collectively creating this new investment landscape. They have their own unique story to tell, are driven to succeed on their own terms and, most importantly, are in charge of their own investment decisions. This supplement includes five sections that provide a snapshot of what a Future 50 firm looks like, from diversity initiatives to sustainability programs, as well as how they are reaching out to and interacting with clients. These 50 firms were asked today’s most hotly debated questions and quizzed on current issues and topics that are most relevant to the RIA industry. We hope this publication gives you some insight into the top industry power players – and the next generation of advisors. RACHEL LOWRY Editor, Citywire USA rlowry@citywireusa.com
INTRODUCTION
This special report reveals the 50 registered investment advisor firms that best represent our vision of the future of the RIA community. The objective of this project is to highlight the leaders of this competitive and growing industry. Unlike other industry awards, we weren’t looking for the biggest firms by assets or profit growth in recent years. We had an open call, inviting RIAs to fill out a survey asking them about their firms’ growth trajectory, degree of independence, what percentage of their income is fee-based, as well as how inclusive, diverse and sustainably-minded they are. For firms to qualify, they must be registered by the Securities and Exchange Commission as an RIA with between $250 million and $2 billion in assets under management at the end of 2018. Using our proprietary scoring system, we evaluated firms based on their degree of independent ownership; AUM growth; percentage of fee-based business; approaches to sustainability, including sustainability programs and diversity initiatives; processes in place for attracting and maintaining talent; succession planning; staff credentials; investment offerings and capabilities; client education and charitable work; and firm service offerings. The result is a robust list of 50 firms striving to be the best of the crop in the RIA community.
METHODOLOGY
6 Meridian was established in 2016 with the goal of creating innovative portfolios for clients. The name highlights a unique piece of Wichita’s history. In 1855, the Sixth Principal Meridian was established as a launching point for the expansion of the western regions of the US and served as a guide for those in search of a better future for their families. This meridian runs straight through Wichita. 6 Meridian wanted to capture the hope that this Wichita landmark represented. Over the three years since its launch, the firm has opened two private credit vehicles with over $100 million in assets. Led by, Margaret Dechant, the firm has grown from 13 to 20 people since its inception. What three characteristics are integral to your firm’s culture? The cornerstones of our firm’s culture and vision include an expectation of excellence and a culture of trust and collaboration. Our culture plays a vital role in the success of our team, with the majority of our firm having worked together for more than 15 years.
6 Meridian
6 MERIDIAN
Founded in 1998, Abacus has grown from one owner, one team member and a handful of clients to seven owners, 28 team members, 242 clients and $1.13 billion of assets under management. Founder Cheryl Holland leads the team with a focus on collaboration and building high-touch relationships with clients. She says the firm aims to craft unique solutions to meet the financial objectives of its clients. What’s your firm’s main goal for the next five years? Abacus’s main goal for the next five years is to create and celebrate abundance with our clients, our community and ourselves.
Abacus Planning Group
Access Wealth is a privately-owned, second-generation wealth management firm. For more than 30 years, the company has been focused on helping families accumulate and protect wealth. Access Wealth uses integrated teams to ensure that clients have access to credentialed professionals who can help them to meet their wealth management goals. The firm is led by Howard Milove and uses a proprietary asset allocation process to construct client portfolios. What will be the key difference in the successful RIAs of today versus those in 10 years? Technology is improving every day, providing greater access and efficiencies. We believe the firms that remain successful will be the ones with the ability to leverage technology without losing the human touch.
Access Wealth
Steve Lear and Andy Fishman created Affiance Financial in 2000 after working together for five years at another firm. Affiance Financial creates tax-aware portfolios designed for each client’s unique needs. The firm is also focused on giving back to the local community and frequently works with nonprofit organizations. What’s your firm’s main goal for the next five years? In the next five years, our goal is to become a billion-dollar RIA while continuing to make our clients’ lives better.
Affiance Financial
All Star Financial has been a pioneer in fee-only advice for the past 30 years. Its integrated advice combines planning, tax and investment strategies. Led by founder and chief executive, Robert Klefsaas, the firm is investing in technology, people, and processes to ensure it can continue its success in the wealth management industry. What’s your firm’s main goal for the next five years? Our long-term goal is to add $1 billion in new assets and 500 clients through organic and strategic growth.
All Star Financial
Altium was founded in 2010 by Anthony DeStefano. It works with family offices and private clients to create long-term investment plans. The firm focuses on strategic asset allocation, diversification and risk/reward efficiency. Additional factors such as tax-efficiency, cost controls and opportunistic rebalancing are also used when they can be beneficial. What will be the key difference in the successful RIAs of today versus those in 10 years? Successful RIAs will need to be delivering unique consulting and advice based solutions to their clients. They will have abandoned the cookie-cutter, traditional investment advisory model for one that is client-centric, fully customized and dynamic.
Altium Wealth Management
Annex Wealth Management is one of the largest fee-only RIAs in Wisconsin. The firm provides comprehensive wealth management services, from investment management to estate and tax planning. Annex is led by Dave Spano, who works with the firm’s investment policy committee on investment selection and portfolio strategies. The firm also engages in weekly radio broadcasts, newsletters, and a YouTube channel. What will be the key difference in the successful RIAs of today versus those in 10 years? To be successful, RIAs must be comprised of a team of experts delivering elite care and direct, immediate lines of communication. Future generations will expect multiple touchpoints for communication and interaction.
Annex Wealth Management
Headquartered in Scottsdale, Arizona, Ashton Thomas Private Wealth is a diversified financial advisory firm, led by Aaron Brodt. Ashton Thomas has made significant investments in efficiency and automation, freeing up advisors to spend more time with clients. The firm works with private clients, retirement plans, foundations and endowments, and has an advisor platform. It operates throughout the southwest with additional expansion plans slated for the end of 2019. What will be the key difference in the successful RIAs of today versus those in 10 years? RIAs committed to providing an exceptional client and advisor experience will lead the way forward. Long-term success is likely to be defined by those focused on simplifying the advisors' and clients' daily life, particularly through innovative technology solutions and consistent, competent, growth-oriented support.
Ashton Thomas Private Wealth
What does a Future 50 firm look like? The RIAs here are examples of what the advisory industry will look like in the near future. Broadly, that means firms will be more diverse, more sustainable and more forward-thinking than advisors typically have been. Our Future 50 RIAs are rethinking what the advisor-client relationship should like and promoting company cultures that reflect the diversity of life experience that their clients have
The Future is Bright
Overall, the Future 50 offer a glimpse of what the advisory space will look like in the years to come. The days of wood-paneled offices with solemn, fatherly financial planners behind the desk are no more. Instead, the next generation of advisors are more reflective of the wider world and all of the varying life experiences that come with it. Rather than PowerPoints and quarterly reports, next-gen advisors speak frankly, post YouTube videos and respond to text messages
Aurum was launched in 2006 and is led by Eric Wulff. On the wealth management side, Aurum works with individuals and families to build retirement and investment plans. On the business side, the firm helps business owners develop and align strategic plans to grow organizational value. Aurum has offices in Ohio and Florida. What will be the key difference in the successful RIAs of today versus those in 10 years? The successful firm of the future will need to deliver scalable planning and investment solutions through platforms they control that leverage technology and operational efficiencies.
Aurum Wealth Management
Avier Wealth Advisors
Avier was initially focused on retiring telecom employees. As times changed, so did the firm. Now the team, led by founder Dave Welty, focuses on helping tech employees in Seattle and, in particular, Microsoft. The firm helps its clients create globally diversified portfolios that maximize the benefits offered by employers. What will be the key difference in the successful RIAs of today versus those in 10 years? Successful RIAs in the future will be those that adopt tools and business structures that encourage continued growth and improvement of the client experience. The development of true career paths for younger professionals will attract quality individuals to firms that take care of their employees.
BCS Wealth Management provides financial planning, investment management, group benefits and risk management. The firm maintains a strategic partnership with accounting firm Blackburn, Childers & Steagall and trust company First Covenant Trust & Advisors to support tax and estate planning. The 11-person team is led by Nick Clay. What three characteristics are integral to your firm’s culture? First, commitment to faith, family and community, which we value and protect. Second, our team approach, which is evident in the way multiple people have ownership of client success. And finally, the youthful demographics of our staff. The average age of our firm’s ownership team is 38 years of age. Therefore, we are positioned to see the plan realized over the long term.
BCS Wealth Management
Belpointe Asset Management is part of the Belpointe Family Office and helps individuals, advisors and institutions craft comprehensive financial plans. The firm has an emphasis on active and tactical asset management strategies. It is led by Greg Skidmore, who advocates a type of active management called ‘trend aggregation’ that combines various tactical portfolio strategies to capture uncorrelated sources of returns and support capital preservation in client portfolios. What’s your firm’s main goal for the next five years? We don't do long-term planning. We have more confidence in our abiliy to react to whatever the future holds than in our ability to predict the future.
Belpointe Asset Management
Birchwood Financial Partners was launched in 1990 and is led by Dana Brewer. It is a majority women-owned firm with a specialty in socially responsible investing (SRI). Many of Birchwood’s clients come to the firm for its female leadership and focus on SRI. What will be the key difference in the successful RIAs of today versus those in 10 years? Successful RIAs will come in many shapes and sizes, designed to provide value to their target market. All firms will need to leverage technology. Any RIA can succeed as long as they are aware of what’s important to the clients they want to serve and build their service model and pricing accordingly.
Birchwood Financial Partners
Bridgeworth
Bridgeworth was founded in 2008 by six professionals who had worked together for 20 years. DeLynn Zell, one of the six founders, leads the team. Bridgeworth has offices in two cities supporting a 50-person team that manages $1.4 billion in assets under management. Bridgeworth prides itself on combining defined career tracks with a university training program and a succession plan for advisors so that clients and their heirs are served for generations. What will be the key difference in the successful RIAs of today versus those in 10 years? Firms that have the ability to attract and retain younger advisors will be the most successful. Also, firms that create defined career tracks and succession plans for older advisors will retain clients by offering seamless transitions across generations.
Founded in 2011 and led by Neil Gilliss, Canal Capital Management focuses on creating multi-generational wealth for its clients. The firm is 100% employee-owned and provides wealth management, family office and business consulting services. What three characteristics are integral to your firm’s culture? Youth, passion and attention to detail. The advisory team at Canal Capital Management is a generation younger than most of our clients, and we think this brings a unique advantage to helping our clients stay ahead of the curve.
Canal Capital Management
Founding Partners Matt Papazian, Ross Fox, Marti Awad and Sarah Keys launched Cardan Capital in 2015. The firm’s assets have since increased by more than 50%, and four members have been added to the team, bringing the total to 11. The firm chose the name ‘Cardan’ to reflect its approach to wealth management. Another name for a gyroscope, this age-old technology – found in everything from a pocket compass to a spacecraft – represents what the firm seeks to achieve for its clients: stability and balance in any economic environment. What will be the key difference in the successful RIAs of today versus those in 10 years? RIAs will need to provide a wider suite of services in order to remain competitive 10 years from now. Clients will be expecting value beyond investments and will want technology to seamlessly support the relationship.
Cardan Capital Partners
Although located in all four corners of the US, the states most populated by Future 50 firms are New York, Illinois, Maryland and Pennsylvania
WHERE ARE THEY BASED?
Century Wealth Management was founded in 2000 as a single-family office after the sale of a Memphis-based business. Over time, the firm grew into a multi-family office working with several high-net-worth families. Today, Century Wealth offers private client wealth management and family services. The firm is led by president and founder Jay Healy. What’s your firm’s main goal for the next five years? Our goal over the next five years is to accelerate our growth. We want to expand our client base, add talent to the team and build on our momentum as the go-to solution for ultra-high-net-worth clients.
Century Wealth Management
Launched in 1984, Concentus is led by CEO Erik Strid, co-founder Gerald Strid and COO Paul Strid. The firm has a focus on behavioral wealth planning, a type of wealth management that is designed to help clients avoid common investing pitfalls such as not saving enough for the future. The Strids routinely make appearances on business television and have authored several books designed to help individuals invest better. What three characteristics are integral to your firm’s culture? We are dedicated to building a company of talented and committed people who share the same vision: to transform the financial services industry to help our clients lead meaningful and productive lives. As such, we are guided by these three values: We allow integrity to drive every decision we make; we understand that no rewards can be achieved until we create value; and we believe that every challenge is an opportunity in disguise.
Concentus Wealth Advisors
Delegate Advisors
Delegate Advisors is comprised of a team of professionals who have provided independent wealth advice for decades. Delegate offers clients a wealth solution encompassing everything from investments and taxes to wealth planning and risk management. Led by CEO Andy Hart, the firm is focused on helping ultra-high-net-worth families in North Carolina. What three characteristics are integral to your firm’s culture? First, be creative. The advice we provide should go beyond the norm. Our clients receive creative wealth solutions, finding ways to save on taxes, fees and costs. Second, be transparent. Unlike many big banks and brokers, we’re not selling investment products. With no commissions or transaction fees, we have no motive to recommend one investment over another. And finally, be thorough. We don’t just make decisions, we create models to demonstrate potential outcomes, so our clients feel informed and can see the plan realized over the long term.
Ellenbecker Investment Group (EIG) is an independent RIA founded in 1996, led by Julie Ellenbecker-Lipsky. The firm works with high-net-worth individuals, families and nonprofits. In addition, EIG runs an in-house charitable foundation to support the community. It focuses on creating a ‘whole person’ wealth plan designed to meet the plethora of needs an individual might encounter throughout their life. What three characteristics are integral to your firm’s culture? First, create an established set of core values with a family atmosphere. Second, encourage strong community involvement with a focus on education. And third, women-owned businesses and female employees make up 93% of the firm.
Ellenbecker Investment Group
Family Office Research was founded in 2005 and is led by Scott Freund. The team members act as fiduciary advisors for high-net-worth clients. The firm provides the full scope of wealth management services including tax and estate planning, insurance and private banking. What three characteristics are integral to your firm’s culture? It comes down to two for us. Firstly, we put the clients’ interests first by making their lives simpler and more efficient on the wealth management front. And secondly, for our employees, we stress open communication and a team-based approach that encourages thinking outside of the box.
Family Office Research
Financial Services Advisory (FSA) was founded nearly 40 years ago with a twist on how to invest. The firm stresses its FSA ‘safety net’ approach, which is designed to capture the long-term gains of investments and help minimize the impact when they fall. The firm has clients in 40 states, with 12 team members and a branch office in Fort Myers, Florida. What’s your firm’s main goal for the next five years? The mission of our firm is to manage uncertainty, and we strive to become better, not necessarily larger. That is reflected in our development of future strategies to meet the changing needs of our clients and the advice we provide to help them manage financial uncertainty.
Financial Services Advisory
Founded in 1972, Fragasso Financial Advisors is an independent, employee-owned investment management and financial planning firm headquartered in Pittsburgh, Pennsylvania, with five offices. Fragasso represents approximately 1,600 households consisting of individuals, institutions and nonprofit organizations. What’s your firm’s main goal for the next five years? Our main goal is to continue to grow through the execution of our codified client experience. Additionally, our firm’s inorganic growth strategy is focused on acquisitions and firm affiliated partners seeking to leverage our brand, resources and infrastructure.
Fragasso Financial Advisors
Girard Advisory Services provides independent advice and customized plans to clients. Its offerings include solutions for individuals, estates and businesses. The firm provides a wide range of business consulting services in addition to wealth management. Girard is led by Kevin Norris. What will be the key difference in the successful RIAs of today versus those in 10 years? A leading firm will be one that can make meaningful connections with their client’s children and grandchildren. They will support multi-generational wealth with comprehensive retirement, estate and tax planning. Adopting new technology and leveraging new tools will be needed to deepen relationships and enhance service offerings in the face of larger competitors moving into the RIA channel.
Girard Advisory Services
Heron Wealth
In 1996, David Edwards founded Heron Wealth as a stockpicking firm with a specific mandate: US mid-cap growth stocks. In 2006, he pivoted to full slate wealth management. Today, Heron Wealth provides fee-only financial, tax and estate planning, as well as investment advice. What three characteristics are integral to your firm’s culture? It will be transparent, modern and technology-forward.
For more than 30 years, Huber Financial has focused on holistic wealth management and currently manages more than $1.5 billion in assets under management. The firm, led by CEO Dave Huber, says it operates within a unique, meritocratic culture that emphasizes the quality of ideas over seniority. What three characteristics are integral to your firm’s culture? Collaboration, professionalism and servant leadership.
Huber Financial Advisors
Intellectus Partners
For more than 20 years, Intellectus has advised technology and startup companies in many industries to ideate, create, build scale and exit innovative companies. The firm is led by founder David La Placa, as well as co-founder and president Jay Casey. What’s your firm’s main goal for the next five years? Intellectus’ mission is to be the leading advisory practice for entrepreneurs and business builders. There is a large and incredibly high growth service model that the industry has largely ignored. You cannot separate the entrepreneur from his business and vice versa. The four horsemen of Silicon Valley were acquired by the big banks because they knew that ultimately it was a better model. Our goal is to reinvent the advisory model entirely.
Keebeck Wealth Management is an independent advisory firm founded in 2018. The team represents over 100 years of collective experience in the financial services industry. The firm specializes in customized solutions to help entrepreneurs and executives pivot from being the CEO of their company to the CEO of their capital. Keebeck is led by Bruce Lee, who founded the firm. What’s your firm’s main goal for the next five years? Our five-year plan is rooted in the client experience. We manage our practice and view the world through the eyes of an investor. Our long-term goal is to deliver proprietary investment solutions through unique investment vehicles that help our clients.
Keebeck Wealth Management
These Future 50 firms are not afraid to have difficult conversations to ensure that the firm will always be in good hands, come what may
Securing a strong succession plan
Talent management and succession plans are two of the thorniest issues for organizations. This is especially true in the advisory space where clients develop relationships with an individual advisor who has shared life experiences and understands their investment goals. That advisor often has just the right mix of knowledge on historical investment trends and new investment opportunities. And when an advisor retires, it can create turmoil for firms and individuals. For a long time, firms have kept their heads in the sand about both recruiting and succession planning. It’s often difficult for advisors to talk to a founder or partner about how and when they want to retire, not to mention who they want to carry on in their place. However, for the firms in the Future 50, many started thinking through these issues on day one and brought in experts to help craft policies as principals got nearer to retirement. 6 Meridian, a Future 50 RIA based in Wichita, Kansas, has worked with a compensation consultant to come up with a plan for employee stock ownership and profit-sharing. That plan gives owners the opportunity to sell down shares as they get nearer to retirement. Profit-sharing is expected to start in 2020. Under the profit-sharing plan, junior employees will be able to fund the eventual purchase of owner shares and will be incentivized to build the business. Alongside working out the economics for junior employees, 6 Meridian says that it started deliberately hiring the next generation of younger and more diverse employees so they will have ample time to train and bring fresh perspectives to the firm. At Bridgeworth, another Future 50 RIA, senior partners notify the firm three years prior to an intended retirement so a transition plan can be put in place. Once an owner reaches retirement, they’ve been fully bought out of the firm and a new partner stands ready to take over their responsibilities. Bridgeworth adds that all clients are managed by a team of professionals to guard against any unforeseen departures that would otherwise disrupt a client relationship. Other Future 50s have opted to create multi-year strategic plans that account for potential retirements so that they can plan ahead. For firms that are still new to the succession-planning game, many say their main goal is to set up something similar to 6 Meridian or Bridgeworth’s shared ownership plans, so that firm equity and client relationships are spread throughout the organization.
New blood
As firms plan for retirement, they also have to think strategically about how to skill-up existing members of the team and bring on new people. Many of our Future 50 RIAs offer programs that allow advisors to train and get professional certifications for free or at a steep discount. Respondents say it’s important that advisors train throughout their careers so that they remain up to date on new technology and maintain a broad understanding of new investment strategies and how they might work in client portfolios. At Huber Financial, a Future 50 business based in Chicago, Illinois, the firm has implemented what they call their ‘evolved advising’ program, which matches advisors with career tracks and skill-building opportunities that help them craft areas of expertise or grow into a position they desire. Huber also provides recurring workshops to help both new and old employees learn about tactical, everyday evolutions in the advisory field that could help clients or lead to operational efficiencies. At other firms, new hires work their way up. In practice, this can mean starting in customer service rather than advisory right away and then moving up through the ranks over time, so an individual employee has a feel for all of the touchpoints of client experience. Most of the Future 50 firms say that it is important to have a multi-week onboarding process so new members of the team are aware of not just company guidelines and culture, but also how each group works together. Recruiting new team members has also evolved for Future 50 firms. Rather than simply going to job fairs or networking with professional organizations, many firms in our list have expanded their hiring process to ensure they are getting a more diverse talent pool. They’re also working with local schools and universities to bring students in as early as the freshman level to introduce them to the advisory world and build relationships that could eventually lead to a job after graduation. Respondents consistently said their goal was to ensure that their staff reflects people from all types of backgrounds and experiences, so that clients feel like their advisor understands them. Expanding recruitment also helps firms think through business longevity – fresh perspectives can often open up new ways of creating value. Talent management and succession planning are often fraught, but the Future 50 shows us that it doesn’t have to be. By creating long-term succession plans and hiring for diversity, these firms have shown that RIAs can future-proof their businesses and stay relevant as financial services continue to evolve.
LVW Advisors
LVW’s two principals, Lori Van Dusen, CEO, and Joe Zappia, CCO, each have 30 years of experience, and are backed by a team comprised of members with diverse backgrounds. The team began providing consulting services to institutional and ultra-high-net-worth families over three decades ago. What will be the key difference in the successful RIAs of today versus those in 10 years? Anchoring to ‘this is how we do things’ will make many RIAs irrelevant in the future. How we invest, charge for our advice, manage relationships, acquire new relationships, communicate with clients – it’s all changing. Successful RIAs of the future will need to adapt.
Madison was founded in 2000 as an independent, fee-based RIA and fiduciary. Today, the firm remains true to its client-focused roots, having grown into a team of 24 professionals, serving 350 client relationships in 30 states and approaching $1 billion in assets under management. Investments include individual securities, low-cost passive and actively managed mutual funds, and non-traditional, alternative-type assets. Madison also has offices in Leesburg, Virginia, and Bethesda, Maryland. What three characteristics are integral to your firm’s culture? High integrity, team-oriented, client-focused.
Madison Wealth Management
For two decades, Mainstay Capital Management has provided financial management services. As a fee-only independent investment advisor, its services include active portfolio management of an individual’s IRA, 401(k), 403(b) and other investment accounts. CEO David Kudla is a regular contributor to financial media. What’s your firm’s main goal for the next five years? Our firm’s goal is to be recognized as the best full-service wealth manager in the US as measured by client satisfaction. We will achieve this by providing our superior portfolio management and financial planning services to individuals, one client at a time through organic growth.
Mainstay Capital Management
Monument Wealth Management is led by David Armstrong and Dean Catino, the firm’s presidents and co-founders. The business focuses on what it calls Private Wealth Design, its own approach to portfolio construction. What’s your firm’s main goal for the next five years? Our goal is for Monument to become nationally recognized as an opinion and thought leader in the financial services industry, well as in the eyes of individual investors.
Monument Wealth Management
MRA Associates
MRA Associates was founded in 1991. The independently owned firm provides investment advisory, wealth management, tax compliance and consulting services to individuals, families, corporate retirement plans, endowments, and foundations throughout the US. The company has over 60 employees and manages and consults on more than $3 billion worth of assets. It has offices in Nevada and Minnesota. What will be the key difference in the successful RIAs of today versus those in 10 years? Successful RIAs will focus their efforts on truly understanding their clients’ needs, as well as educating them about reasonable expectations and changing market dynamics.
Omnia Family Wealth is a multi-family office. Its three co-founders, Steven Wagner, Michael Wagner and Ivan Hernandez, represent three generations, giving them a unique perspective to serve their clients with. Omnia works with complex family offices to provide global and multi-generational support. What three characteristics are integral to your firm’s culture? Three characteristics that are integral to Omnia Family Wealth’s culture are multi-generational wealth (the three Omnia founders represent three generations with a succession plan), risk management (when crafting investment solutions, they focus on risk, expenses and taxes) and collaboration (rather than competing against them, they work alongside their families’ networks of external providers).
Omnia Family Wealth
Payne Capital Management started as a father-and-son team. The pair began their careers at a big brokerage house and left with the goal of going independent. Ten years later, Bob and Ryan’s team has expanded to 15 employees, two offices, and over $750 million in assets under management. Beyond avoiding pin stripped suits, the firm is made up of mostly millennials and an advisory team of mostly women. What’s your firm’s main goal for the next five years? In the next five years, PCM plans to be a mult-billion-dollar firm and a household name.
Payne Capital Management
Established in 2015, Purus Wealth Management is led by CEO Mark Larsen. The firm focuses on helping clients of all sizes create whole life wealth management plans. The team at Purus believe that investment planning should be straightforward, transparent and accessible. What three characteristics are integral to your firm’s culture? First, integrity – always do the right thing for the client, the firm and our team. Second, commitment – always be accountable while finding passion and joy in our work. And third, respect – treat our clients and each other with dignity, patience and kindness.
Purus Wealth Management
Rhame & Gorrell Wealth Management (RGWM) was formed in 2016 by Jeff Rhame and Mike Gorrell. They had already worked together for more than 22 years at a private equity-backed advisory firm. RGWM has since experienced tremendous growth, recently recognized as one of the largest RIA’s in the Houston area. The firm’s investment philosophy emphasizes efficient diversification, with the goal of achieving a nonvolatile balance of high returns and manageable risk over time. What will be the key difference in the successful RIAs of today versus those in 10 years? The key ingredients to success are hard work, embracing technology, younger employees and advertising. Size matters as much today as it will tomorrow, and the larger firms will have an advantage.
Rhame & Gorrell Wealth Management
RTD was founded in 1983 by Roy Diliberto. Over 35 years later, with nearly 40 employees across five offices, the firm’s advisors provide unbiased, objective, fiduciary advice through financial life planning, company retirement plans and institutional offerings. What will be the key difference in the successful RIAs of today versus those in 10 years? With the continued threats of disruption, increased competition and pricing pressures, we believe successful RIAs must first determine what demographic they want to focus on, then scale their business accordingly. If they wish to focus on serving more complex higher wealth clients, that means focusing on people and personal relationships, and then leveraging technology for the back office. If they wish to focus on serving the mass affluent, they must focus on leveraging technology to provide great client experience.
RTD Financial Advisors
Sowell Management Services has been a fee-only fiduciary since 1995. The firm has 30 employees and is led by Bill Sowell, CEO and founder. The business is focused on a high-touch approach that builds deep relationships with clients. What will be the key difference in the successful RIAs of today versus those in 10 years? Firms must increase efficiency by relying on technology, without forgetting about who we work for and that this is a people business. Those who do both well, will thrive.
Sowell Management Services
Spotlight Asset Group was founded in 2017 by Stephen Greco, a veteran of the wealth management industry. Over the past 18 months, Spotlight has grown from four employees in Chicago with $100 million in AUM to 18 employees across seven offices around the country managing over $325 million in assets. Headquartered in Chicago, Illinois, Spotlight also has offices in Ann Arbor, Calabasas, Dallas, Orange County, San Diego and Tampa. What’s your firm’s main goal for the next five years? When I started Spotlight, instead of setting specific growth targets, my primary focus has been a simple one: to have a positive impact on as many clients and employees as possible. Since we are already one of the fastest growing RIAs in the country, I think the sky is the limit over the next five years and beyond if we continue to execute that mission.
Spotlight Asset Group
Our Future 50 RIAs agree that firms focusing on diversity will lead the industry forward. Many respondents said they were committed to diversity but had no formal policy in place. Below are five firms that have codified their approach to diversity to ensure that it is part of the hiring process and company culture
BEST OF DIVERSITY
Abacus is one of the few firms in our Future 50 with a written commitment to continuously expanding their diversity footprint. Abacus has a three-year action plan for improving diversity across the firm. Abacus also regularly hosts single and multi-day retreats on diversity and inclusion. The firm includes people of varying race, nationality, religion, socio-economic status, sexual orientation and gender.
Fragasso Financial Advisors has opted to focus on staff training to give people the tools to interview and hire for diversity effectively. The firm also recruits through job fairs that are focused on diversity and inclusion. In its most recent employee guidelines, Fragasso included a diversity statement.
Ryan Payne’s favorite quote is from Gandhi: ‘You must be the change you wish to see in the world.’ PCM approaches diversity in myriad ways. Over half of the firm’s employees are millennials and more than half of the advisors are women. During the summer, PCM worked with the Newark College Institute summer internship program to bring in a wide range of interns in the hope of introducing a diverse young audience to financial services.
FSA says they believe that their team members should reflect the diversity of their clients in terms of age, gender and ethnicity. The 15-person firm is small, but they don’t let that stop them from creating a team with many different strengths – and this starts in their hiring process. The firm says that with a broad range of perspectives at the table, it can make better decisions for its clients.
The Wealth Consulting Group is minority-owned and has always focused on diverse hiring, believing that a diverse workforce leads to more effective business decisions, discourages group-think and attracts a broader group of clients. About 35% of WCG’s advisors are female and women make up just over half of the firm’s total headcount. About a third of WCG is of non-white ethnic descent, and 5% identify as LGBTQ. The firm is also developing financial outreach and investment programs that target audiences underrepresented within the advisory world, including women and minorities.
WCG Wealth Advisors
Stearns Financial Group (SFG) is a fee-only wealth management firm with offices in Greensboro and Chapel Hill, North Carolina. The company has been called one of the leading scenario experts by the Financial Planning Association. It uses its expertise in scenario modeling to craft portfolios for high-net-worth clients. SFG is led by founder and CEO Dennis Sterns. What will be the key difference in the successful RIAs of today versus those in 10 years? Balancing better human interactions and technology will be the hallmark of the best RIAs in 2029. It’s easier said than done in a world of rapidly increasing technologies.
Stearns Financial Group
StratWealth
Across three offices and almost 30 associates, StratWealth provides services to families, individuals, retirees and 401k plans. The firm, which is led by CEO Jim DeCarlo, provides whole life financial planning tools to clients and also offers advice on strategic business planning and divorces. What’s your firm’s main goal for the next five years? Over five years, StratWealth will widen its footprint to serve a community of like-minded advisors who are just as passionate about leadership, smart growth, quality advice and continuity of service.
Syntal Capital Partners was launched in 2012. The firm focuses on the needs and issues of families and business owners working in the energy industry and related fields. It offers clients an array of services, including investment management, estate planning and trusts, tax management, concentrated stock solutions, banking and lending, and philanthropic services. What three characteristics are integral to your firm’s culture? Synergies of talent, honesty and integrity.
Syntal Capital Partners
The Joseph Group was named after Joseph Palmer, father of fraternal twins Matt and Mark Palmer, who founded the firm in 1999. The firm’s investment process centers around four objectives – protect, provide, grow and aspire – which can be combined in different ways to form the foundation for a client’s wealth plan. What will be the key difference in the successful RIAs of today versus those in 10 years? In 10 years, there will be a separation between the disrupters and the disrupted in the investment industry. That said, we are in a people business, and there will always be a market for firms that are finding creative ways to meet needs and make an impact on the people they serve.
The Joseph Group Capital Management
The Mather Group
After roles at UBS and Morgan Stanley, Stewart Mather founded The Mather Group in 2011. The firm is a tech-forward national RIA providing tax, legal, investment and financial planning advice. It also provides tax preparation, legal advice, estate planning, private jet lease structuring, bill pay, philanthropic diligence, wealth transfer expertise, multi-generational planning and exposure to alternative investments. The business has 66 employees with offices throughout the country. What’s your firm’s main goal for the next five years? The firm’s goal over the next five years is to continue to stay at the forefront of technology innovation, developing reliable and scalable solutions that benefit our clients and our business, while offering fully integrated financial planning, tax, investment and legal advice as pure fiduciaries. It will continue to pursue our strategic growth and expansion efforts through M&A opportunities.
After nearly 10 years at LPL Financial, Joe Esposito formed The Pinnacle Financial Group in 2012, with $120 million in assets under management. Today, the firm has grown to 37 advisors, multiple offices in the New York area and more than $1.2 billion in assets. The firm focuses on providing comprehensive wealth management solutions. What three characteristics are integral to your firm’s culture? Firstly, we strive for a neighborhood feel for our staff and clients, while maintaining an ambitious plan and footprint. Secondly, the leadership team focuses on helping our advisors grow their individual practices using various marketing and social media strategies. And finally, philanthropy is a founding pillar that has shaped our company and culture.
The Pinnacle Financial Group
The Wealth Consulting Group was launched in October 2014 with around 30 advisors and has since grown to a team of 90 spread over 24 branches. The firm also consists of an investment committee that provides investment models, an insurance consultant, a practice management consultant, a marketing department and compliance personnel. Its investment philosophy is to provide competitive risk adjusted returns at low costs. What will be the key difference in the successful RIAs of today versus those in 10 years? I believe that successful RIAs in 10 years will need to be able to provide a differentiated service that both advisors and investors can easily identify as value added. Investment management is a commodity.
The Wealth Consulting Group
Verdence Capital Advisors is a 30-person private wealth advisory. CEO Leo Kelly created the firm after stints at Merrill Lynch and HighTower. The all-advisory RIA is committed to the principle that advice should be transparent, customized and unconflicted. What three characteristics are integral to your firm’s culture? First, we seek to listen to each other and to our clients. Secondly, we believe in collaboration and genuine care for one another. And finally, each team member is challenged to think like an entrepreneur. We hire great people, asking, ‘What makes you different? What makes you the best?’ We then create opportunities for them, which encourages divergent thinking and the best possible outcomes.
Verdence Capital Advisors
Throughout the industry, advisors are thinking about how to practice ESG – not just how to invest in it. In practical terms, that might mean transitioning to a paperless office or simply cutting down on the number of paper reports mailed to clients. Here, we’ve highlighted five firms going beyond the green basics
BEST OF GREEN POLICY
Abacus has a long-term commitment to sustainability both within the organization and in the broader community. The firm’s office building is an adaptive reuse of a former industrial warehouse built with sustainability in mind. The building uses carpets from recycled materials, lighting that turns on and off depending on movement in the room and natural light, computerized heating and air system to minimize energy usage, and a certified bird sanctuary for their outdoor space. Abacus has also installed bicycle racks to encourage employees and clients to bike to the office. The business recycles all of its trash, including collecting and taking batteries to an offsite facility, collecting and taking plastic bags to the local food bank for reuse, and the normal day-to-day recycling of glass, paper and trash.
Mainstay Capital Management says it is committed to reducing the environmental impacts of its operations and activities and has incorporated sustainability principles into its company guidelines. The organization is required to recycle, adopt green procurement practices, and continually review and minimize the impact of firm activities on the environment.
TMG’s green policy includes two main components: resource conservation, and waste reduction and recycling. Most of its branches are located in LEED platinum-certified buildings. In addition, the firm has a 100% digital (cloud-based) infrastructure across the firm. It is committed to promoting efficient use of energy and natural resources through cost-effective conservation and energy management in all offices. The company also promotes recycling and has implemented a reverse-osmosis water filtration system in several of its offices to reduce the use of plastic water bottles.
In addition to a company-wide recycling requirement, StratWealth also holds ‘shred-it client days’ each year to cut down on and recycle unnecessary paper. StratWealth also stopped sending printed quarterly reports to its clients, instead delivering them digitally.
Altium Wealth recently transitioned to a cloud-based system, opting to store documents digitally to reduce reliance on paper. Clients may also receive and sign documents digitally using DocuSign. Finally, the firm is working on a sustainability policy that includes an emphasis on recycling.
Altium Wealth
Mother-daughter team Sue McGrath and Marina Johnson founded Vision Capital Management in 1999. Today, the firm consists of 13 professionals creating dynamic, risk-optimized portfolios. It is managed by a four-person executive committee that includes the founders. What’s your firm’s main goal for the next five years? To find innovative ways to add value for our clients through investment management and planning solutions.
Vision Capital Management
Woodmont Investment Counsel was founded in 2000 by former partners of a Nashville-based regional investment bank and brokerage firm. Since then, the firm has steadily grown its client base and assets under management by 100%. It has a team of eight partners and staff serving 300 clients and managing nearly $800 million in assets. What three characteristics are integral to your firm’s culture? Firstly, check your ego at the door. Secondly, there is no ‘I’ in team. And thirdly, average is not good enough.
Woodmont Investment Counsel
Director, US and Latin America Chris Delahunt
cdelahunt@citywireusa.com
editors ALEX STEGER
asteger@citywireusa.com
research and sales marissa lewis
HEAD OF THE AMERICAS mlewis@citywireamericas.com
DAVE MASTERSON
SALES EXECUTIVE dmasterson@citywireusa.com
ISAIAH GREEN
RELATIONSHIP MANAGEMENT igreen@citywireusa.com
atholl simpson
asimpson@citywireamericas.com
hhawkins@citywire.co.uk
Sub-editors hannah hawkins
jmcintyre@citywire.co.uk
Design Jim McIntyre
joshua heer
jheer@citywire.co.uk
Elizabeth Critchwell
ecritchwell@citywire.co.uk
mICHELLE aBREGO
mabrego@citywireamericas.com
rachel lowry
rlowry@citywireusa.com
AMELIA GARLAND
HEAD OF RELATIONSHIP MANAGEMENT agarland@citywireusa.com
COPY BAILEY MCCANN
bailey.mccann@gmail.com
Daniel Barnes
HEAD OF RIA SALES dbarnes@citywireusa.com
