FA: We see a lot of people leaving brokerage firms and starting their own business. Do you think the old brokerage model is broken?
Randazzo: Business models evolve and adapt based on the needs of the market they serve, and Rockefeller was created as part of that evolution. We saw the need and opportunity for a client-centric company that serves very specialized entrepreneurial advisors who can deliver highly customized solutions. Through our platform, we make that possible and the advisors who have joined us see and appreciate the results.
FA: What is the long-term goal? Is Rockefeller Capital Management going to be a RIA only, a hybrid, or is it going to keep the brokerage license?
Randazzo We think we have created something new and unique, and that’s exciting for clients and for us. I think that’s evident in our ability to attract not only top advisor talent but also some of the industry’s most experienced and accomplished professionals in technology, operations, and investments. Everyone at Rockefeller Capital Management is focused on creating something new that enables us to bring our clients opportunities they can’t get anywhere else, and our advisors are excited and energized by the platform we’ve created.
FA: To further that point, Is the goal to be like a Merrill Lynch or an Edelman Financial Engines?
Randazzo: We do not define ourselves in comparison to anyone else. We are trying to be the very best version of who we are by seeing around corners for clients and providing them with solutions and options which support their specific needs.
FA: How many locations do you have? Also, last September you acquired Financial Clarity Inc., a multi-family office in Silicon Valley. Can you elaborate on the multi-family approach?
Randazzo: We are currently operating in 15 locations across the U.S, with plans underway to open additional locations in 2020. In 2021, we will continue to expand strategically into communities where we believe there are potential clients who can benefit from our services and where the Rockefeller brand will thrive. Our Global Family Office model seamlessly integrates private wealth and family office services, resulting in a set of highly customized, bespoke capabilities that offer clients and their families a holistic experience across their financial lives.
FA: The Rockefeller family has been associated with sustainability for a long time, and with ESG investing gaining traction today, especially among the younger generation, what is Rockefeller Capital Management’s attitude toward ESG?
Randazzo: The Rockefeller family's early vision that investments can catalyze positive change has given us a considerable head start on an ESG investing approach that most of the competition is still trying to size up. Our asset management team, Rockefeller Asset Management, has a 30-year track record managing a Global ESG Equity strategy rooted in ESG-integrated analysis and deep shareholder engagement. To deepen and expand our commitment and focus across the firm, we have created the Sustainable Investing Leadership Coalition, a group that oversees the strategic execution of sustainable investing at Rockefeller. Together with the Coalition, we are focused on three key outcomes: expanding our sustainable investment solutions; deepening understanding of how sustainable investing can drive not only positive impact but also performance; and making ourselves known globally as industry leaders. Because we also recognize that ESG is an area of high priority for younger generations of the families we serve, we also benefit greatly from the guidance we receive from our Next Generation Advisory Council, a group of individuals who convene regularly to address the diverse topics that are critically important to our clients and future generations, in the U.S. and globally.
FA: What kind of clients are you looking to serve? Is it someone a little more successful than the guy down the road who has three hardware stores and $3 million or someone more successful like the business executive with $5 million or more?
Randazzo: We trust our advisors to make the right choice when deciding when their business practice and Rockefeller make sense for a client, and generational family wealth can be accumulated in a variety of fashions. All of our clients share the desire for advice and counsel that will help them make good decisions in a rapidly changing world, and our advisors deliver that every day.
FA: How much of your client base is the Rockefeller family and what is the family’s asset makeup?
Randazzo: We take client confidentiality very seriously and would not share that information for any of the families and clients we serve.
FA: Are you under the same umbrella as the old Rockefeller and Company?
Randazzo: We acquired Rock & Co. in 2018 and today, under the umbrella of Rockefeller Capital Management, we are building on this incredible foundation to expand our capabilities for institutions and ultra-high-net-worth individuals via our asset management, strategic advisory and broker-dealer businesses to meet the needs of ultra-high-net-worth individuals.