The art of the deal is not only alive and well in the independent RIA space, but flourishing, thanks to industry leaders who understand that bigger can be better when growing their brand and its value.
One firm that made Financial Advisor's 50 Fastest-Growing Firms List in previous years has found a new path towards growth. Instead of acquiring smaller firms, it recently merged with a larger one.
In 2014, Financial Advisor Magazine reported that Brookstone Capital Management, headquartered in Wheaton, Ill., was ranked 28th out of 50 fastest-growing RIAs.
That was then.
This year, the Clearwater, Fla.-based AmeriLife Group, which markets and distributes annuity, life and health insurance products, acquired a majority interest in Brookstone, creating “one of the largest independent marketing and RIA organizations in the U.S.,” according to a news release.
The reported combined organization will have more than $3.3 billion in annual life, health and annuity premiums, and $2.7 billion in assets under management (AUM).
That’s impressive, but here, in ascending order, are Financial Advisor's top 10 fastest-growing firms of 2019, each with their own success story:
10. Axxcess Wealth Management, LLC
Axxcess Wealth Management, founded in 2012 and headquartered in Carlsbad, Calif., ended 2018 by growing its client assets as quickly as its clientele. The firm reported $777.74 million in total assets, a 50.65% increase over 2017, with a total of 875 clients investing 11.91% more in assets per client.
9. Madison Wealth Management
Headquartered in Cincinnati, Madison Wealth Management ended 2018 with 465 clients and $791.86 million in assets, representing a 54.90% growth in assets over year-end 2017 and a 2.60% growth in assets per client.
8. Miracle Mile Advisors
Founded in 2007, Miracle Mile Advisors is headquartered in Los Angeles, with an additional office in Newport Beach, Calif. Miracle Mile ended 2018 with 493 clients and $1,399.69 billion in assets, representing a 55.85% growth in assets over year-end 2017 and a 3.06% growth in assets per client.
7. Camden Capital
CEO John M. Krambeer founded Camden Capital in 2004. Headquartered in El Segundo, Calif., the firm ended 2018 with 302 clients and $3,174.61 billion in assets, representing a 60.53% growth in assets over year-end 2017 and a 44.05% growth in assets per client.
6. Intelligence Driven Advisors
Headquartered in Carlsbad, Calif., this firm describes itself on the local Chamber of Commerce website as “process driven.” Whatever the secret to their success, the firm ended 2018 with 1,200 clients and $740 million in assets, representing a 68.18% growth in assets over year-end 2017 and a 19.13% growth in assets per client.
5. GM Advisory Group
Led by Frank Marzano, a CPA and financial advisor, GM Advisory Group (GMAG) is an employee-owned investment manager headquartered in Melville, N.Y. GMAG ended 2018 with 414 clients and $1,415.46 billion in assets, representing a 72.35% growth in assets over year-end 2017 and a 66.93% growth in assets per client.
4. Per Stirling Capital Management
Founded in 2009, Per Stirling offers personalized service at both its Austin, Texas, offices to clients with the required minimum of $250,000 in investable assets. Per Stirling ended 2018 with 941 clients and 1,087.99 billion in assets, representing 74.82% growth in assets over year-end 2017 and 36.92% growth in assets per client.
3. Cafaro Greenleaf
In 1981, Cafaro Greenleaf opened for business in Red Bank, N.J.,, specializing in corporate plans and public pensions. Cafaro Greenleaf ended 2018 with 400 clients and $4,300,000 in assets, representing 86.96% growth in assets over year-end 2017 and a decrease in growth of assets per client.
2. Cabana Asset Management
Headquartered in Fayetteville, Ark., Cabana Asset Management offers its clients asset management, wealth management, and legal services. Cabana Asset ended 2018 with 3,539 clients and $608.01 million in assets, representing a 101.87% growth in assets over year-end 2017 and a 63.94% growth in assets per client.
1. The Mather Group
This year’s number top fastest-growing firm is Chicago-based Mather Group, a fee-only wealth management firm founded by Steward Mather in 2011. Earlier this year, his eponymous firm began the New Year with a bang by launching a family office through its acquisition of Astraeus Advisors, a multifamily office in Park Ridge, Ill. Astraeus manages over $1 billion in client assets.
And the year is only half over. According to Mather, there are other M&A additions planned. Mather said in an email that his firm is selectively looking to partner with fee-only founders that share The Mather Group’s culture and mission. There is, however, a requirement all interested would-be partners must be able to meet, according to Mather, who described how his firm screens applicants for M&A partnerships.
“Our deal structures are flexible, [but] typically involve a majority of cash paid up front with equity participation when appropriate,” he said.
The Mather Group ended 2018 with 1,139 clients and $3,873.06 billion in assets, representing a 156.13% growth in assets over year-end 2017 and a 101.71% growth in assets per client.
