Market Overview

2022 Market OverviewNorthwest Hiring Trends for Wealth Managers

Dear Colleagues,

We here at RAH Financial would like to summarize Northwest hiring trends we’ve observed among the regions Wealth Managers. In addition, we’ve updated our Washington State Money Manager's Ranking List, ranked by AUM (Assets Under Management), located on our site home page and under the ‘Rankings List’ menu item. This list ranks 360 firms, whose home offices are either located in Washington State or who have a significant client presence here. For contrasting purposes, we’ve also made available an archive of our past Ranking Lists under the same ‘Rankings List’ menu item.

For our ’06 – ’22 lists, we’ve included an alphabetical sort of firm names, making it easier to locate an individual firm’s AUM and ranking.

Note: As usual, we are attempting to ‘tighten up’ our estimated AUM figure by only counting in-state assets for firms who have moved their corporate offices out of state and by attempting to match end-of-year estimates as close as possible to the most recently-filed ADVs. As is usually the case, only a minority of firms respond to our AUM estimate request every December so their most recent ADV figures are used, which may not include asset gains in the remaining portion of the year. We will continue to accept AUM estimates through mid-January.

Some quick facts from our list:

• 360 firms (-18 From 12/21)
• $1.099 trillion in total AUM (-110 billion from 12/21)
• 51 firms with AUM more than $1 billion (-1 from 12/21)
• 265 firms had a year-over-year increase in AUM (74% of total firms, vs. 72% in 12/21)
• The AUM figure for firms experiencing an AUM increase over their 2021 levels have their AUM highlighted in bold green

Washington State money manager changes in 2022

Company name changes, acquisitions/mergers:

• Sound Financial Planning, Mount Vernon, was acquired by EP Wealth Advisors, Seattle
• Strategic Wealth Management, Inc., Kirkland, shut their doors on 3/31/22
• Viridian Advisors, LLC, Seattle, was acquired by Edelman Financial Engines
• Private Ocean Wealth Management, Seattle, was acquired by Wealthspire Advisors
• Highland Private Wealth Management, Bellevue, was acquired by Hightower Advisors, LLC
• Edge Asset Management, Inc., has no current ADV on file
• Quantum Financial Planning Services, Inc., has no current AUM
• Ramsey & Associates, Inc., Seattle, has no current ADV on file
• Kaufman Kampe Advisors, LLC, Mercer Island, was acquired by Pure Financial, California
• Dental Wealth Advisors, LLC, Kirkland, was acquired by Buckingham Strategic Wealth, LLC, Clayton, MO
• Warga Asset Management, Kirkland, has no current ADV on file

New wealth management firms launched or newly added to our ‘22 list:

• Blue Water Wealth, Inc., Portland-based, has Seattle offices
• Promenade Wealth, LLC, Bellevue
• Edelman financial Engines, Seattle, previously Viridian Advisors, LLC, Seattle
• Hara Capital, LLC, Bellevue

Firms dropped from our list, having either closed their doors in '22, were acquired, have no recent ADV on file, have no active AUM or have never responded to our AUM requests:

• Sound Financial Planning, Mount Vernon, was acquired by EP Wealth Advisors, Seattle
• Strategic Wealth Management, Inc., Kirkland, shut their doors on 3/31/22
• Viridian Advisors, LLC, Seattle, was acquired by Edelman Financial Engines
• Private Ocean Wealth Management, Seattle, was acquired by Wealthspire Advisors
• Highland Private Wealth Management, Bellevue, was acquired by Hightower Advisors, LLC, though they will operate separately
• Edge Asset Management, Inc., has no current ADV on file
• Quantum Financial Planning Services, Inc., no current AUM
• Ramsey & Associates, Inc., Seattle, no current ADV on file
• Kaufman Kampe Advisors, LLC, Mercer Island, acquired by Pure Financial, California
• Dental Wealth Advisors, LLC, Kirkland, was acquired by Buckingham Strategic Wealth, LLC, Clayton, MO
• Warga Asset Management, Kirkland, no current ADV on file

Top Ten largest AUM increases (min. $1 billion in ‘22 AUM)

Firm	AUM Increase (in millions)
1. Fisher Investments, Camas	+$48,000
2. Freestone Capital Management, LLC, Seattle	+$1,710
3. Empirical Wealth Management, AK, CA, OR and WA	+$1,121
4. Verus Advisory, Inc., Seattle, L.A., S.F.	+$1,086
5. Laird Norton Wealth Management, Seattle	+$698
6. The Clarius Group, LLC, Bellevue	+$637
7. Pacific Portfolio Consulting, LLC, Seattle	+$480
8. Barwick & Partners, Inc., Seattle	+$459
9. Strategic Income Management, LLC, Seattle	+$414
10. Kosmos Management, LLC, Seattle	+$281

Top Ten largest percentage increase in AUM (min. $1 billion in ‘22 AUM)

Firm	% Increase
1. Parcion Private Wealth, Bellevue	+39%
2. Empirical Wealth Management, AK, CA, OR and WA	+37%
3. Strategic Income Management, LLC, Seattle	+31%
4. Fisher Investments, Camas	+30%
5. Kosmos Management, LLC, Seattle	+28%
6. Kiley Juergens Wealth Management, LLC, Olympia	+24%
7. The Clarius Group, LLC, Bellevue	+23%
8. Barwick & Partners, Inc., Seattle	+22%
9. Laird Norton Wealth Management, Seattle	+17%
10. Verus Advisory, Inc., Seattle, L.A., S.F.	+13%

Top Wealth Managers

Every year our Washington State Money Managers Ranking List is comprised of approximately 360 participating firms, ranked by AUM size. This year, the number of firms with AUM of at least $1 billion was 51 firms, -1 less than in 2021. This prestigious list includes some top firms in the country and the bar to be considered a top wealth manager is being raised higher each year.

In 2022, the top 50 firms on our list had a total AUM of $1.040 trillion, versus $1.152 trillion in 2021, a decrease of -$112 billion. On average, the top 50 firms in 2022 had $21 billion in AUM in 2022, a decrease of -$2 billion from 2021.

RAH Financial Asset & Wealth Management Practice

Wealth managers who are seeking faster asset growth than their internal resources allow, will continue to build via acquisition or lift-out. Lift-outs are typically comprised of senior Advisor/Business Development team moves with significant client assets to follow. In 2022, many Money Managers continued with the delicate task of having much of their staff working remotely and meeting with clients, virtually, triggering a continued number of closures, mergers and consolidation. Numerous firms were unable to be sufficiently flexible to conduct business in such a manner and sought either to sell or close their doors. We are expecting continued consolidation activity in 2023, especially since many economists predict a recession of unknown severity.

We are anticipating a continued increase in staffing demand in early 2023 as firms feel they can safely do so now that the pandemic has ended. We here at RAH Financial strive to remain uniquely positioned to anticipate and satisfy local firms’ evolving staffing requirements. Our Asset and Wealth Management Practice has an established track record of success in partnering with institutional and retail investment firms, private wealth managers and hedge funds.

Positioned well for 2023, our Asset and Wealth Management Practice has an established track record of success in partnering with institutional and retail investment firms, private wealth managers and hedge fund clients to assess and recruit:

• HNW/UHNW Advisors with/without Portable Books of Business
• Executive leadership teams or turnkey solutions;
• Seasoned analysts and portfolio managers across all asset classes;
• Marketing, sales and client service professionals;
• Infrastructure, technology and systems managers;
• Risk management, legal and compliance, finance and human resources executives.