Because the firm has been so successful at what it does, it's been a target for wealth managers looking to grow by acquisition, according to Moser. It's grown to a fairly significant size, it has critical mass in terms of assets, it has a well-defined model-and has had for while-and it's in the Pacific Northwest, one of the biggest "new wealth" markets in the country. It's a very attractive market for wealth management firms, he says.

"Seattle has that roll-up-your-sleeves-and-get-it-done spirit," Moser says. "I'm sure every part of the country can say that, but here, it's palpable. I knew of Laird Norton because anyone who is in the industry who is seeking to acquire a business, Laird Norton Tyee is probably going to be on their radar map."

But while the wealth management sector in general may be hot, making money serving wealthy families is not easy, says Krysty. Wealthy people demand personal attention, and that costs money. Clients don't want to go through voice mail, she says. Some family offices will even walk clients' dogs and pay household bills, and Laird Norton does not.

Still, Krysty believes the firm is luckier than most in the current climate. While the firm has seen assets decline along with everyone else's-assets under management fell from $5 billion to $4 billion over the last two years-the firm has a competitive advantage right now in that it has the capital and critical mass of clients to continue to generate revenues.
"What the downturn has done for some firms that were on the margin is it's taken away the revenue stream that enabled them to invest in their business," Krysty says.

Laird Norton, on the other hand, has the luxury right now of investing in technology as well as people. For instance, the firm just installed a new client relationship management system, which will enable it to map out a client's interrelationships so that all of its outside advisors and the relevant information for those advisors are in one place. The firm always had that capability, but everything was done by hand.

The firm is also actively looking to add new talent, from new advisors all the way up to the executive suite. It recently added Moser as a new president this past fall from SunTrust Bank, as well as a new general counsel and chief compliance officer.

"We are well capitalized, and we are private, which in this marketplace is a bit of a luxury," Krysty says. "It means we don't have to make decisions to maximize someone's quarterly earnings. Publicly traded companies are concerned about managing their earnings projections. We can sit back and say, 'What do we really need for our clients in the long haul? What will get them the best outcome in the next five years?'"

Indeed, the current economic downturn is making it easier for smaller independent firms like Laird Norton to hire talent, according to Andrew Reese, a financial services recruiter with the McCormick Group in Arlington, Va. Those working for, say, a large bank that has received bailout money from the federal government now face restrictions on their compensation, Reese says. And some advisors have also seen their bonuses cut because other departments within their firms may be suffering.

But Laird Norton is "private, and they're independent," Reese says, "and those two words are attractive to most people who are currently working at larger firms, where wealth management is a smaller focus of their business. From a talent perspective, it's been a great time to recruit."

Krysty says the firm isn't just in a good position to gain advisors. It's also a good time to pick up new clients, something the firm has done in the last several months.