Market Overview

Introduction

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 added our new Washington State Money Manager's Ranking List, ranked by AUM (Assets Under Management), located on our Rankings List page. This list ranks 425 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 Rankings List page.

NEW: For our ’06 – ’17 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 Rankings list:

  • The number of Money Management firms on our list has increased by +74 (425 vs. 351)
  • 91 new companies were added to our list, while 10 were removed, either due to closure or acquisition
  • We've noted 7 mergers/acquisitions
  • Total WA state AUM experienced a 29% increase of $186 billion ($833 billion vs. $647 billion)
  • 60% of listed firms reported a year-over-year increase in AUM vs 39% in 2016
  • Only 18% of listed firms provided us with a year-ending estimated AUM request.

 

Washington State Wealth Management award-winning firms

Barron’s 2017 Top 100 Independent Advisors:

  • Freestone Capital Management, LLC, Seattle (#20, Erik Morgan)
  • Brighton Jones, LLC, Seattle (#40, Charles Brighton, #41, Jon Jones)
  • Pacific Portfolio Consulting, LLC, Seattle (#57, Lawrence Hood)

 

WA State Money Manager Changes in 2017

Company name changes, acquisitions/mergers:

  • Appropriate Balance Financial Services, Inc., Bellevue, was acquired by Viridian RIA, LLC, March, 2017
  • Brooks, Hughes & Jones, Gig Harbor, is now BHJ Wealth Advisors
  • Federal Way Asset Management, LP is now Aptitude Investment Management, LP, Seattle/Canada
  • Kibble & Prentice Holding Company is now Columbia Pacific Wealth Management, Seattle
  • Rainier Group Investment Advisory, LLC, Bellevue, was acquired by Coldstream Capital Management, Inc., in 3/31/17
  • RAM Investment Partners, LLC is now Avier Wealth Advisors, Bellevue/Lake Oswego, OR
  • Sound Wealth Partners is now Argentus Advisors, LLC, Gig Harbor

 

New wealth management firms launched or newly added to our ‘17 list

  • Barwick & Partners, Inc., Seattle
  • Blackcrane Capital, Bellevue
  • Byrne & Company Wealth Management, LLC, Olympia
  • CAPITAL MANAGEMENT RESOURCES, LLC, Port Orchard
  • Continental Investors Services, Inc., Longview
  • Creative Retirement Planning, Inc., Sequim/Silverdale/Coupeville/Shoreline
  • DIRECTIONAL FINANCIAL SERVICES, LLC, Seattle
  • Duncan & Haley, LTD, Seattle
  • Financial Management, Inc., Yakima/Kennewick/Spokane/Wenatchee
  • First Pacific Financial, Inc., Vancouver
  • Fisher Investments, Camas
  • FSR Wealth Management, Bellingham
  • Geer Financial Group, Inc., Bothell
  • Helium Advisors, LLC, Bellevue
  • Highbury Pacific Capital Corp., Seattle
  • Hot Creek Capital, LLC, Seattle
  • Integrity Wealth Management, Inc., Spokane
  • Interfund Management Services, Inc., Roslyn
  • Investment Hiker, LLC, Vancouver, Hedge Fund
  • Janice Penar, Spokane
  • Janis Financial, LLC, Bainbridge Island, WA
  • John Chesbrough, Bellingham
  • John T. McCarthy, LLC, Spokane
  • Juetten Personal Financial Planning, LLC, Bellevue
  • Karel Capital, Inc., Spokane
  • Kelp Capital, LLC, Seattle
  • Kirchner Financial Services, Inc., Spokane
  • Kosmos Management, LLC, Seattle, Hedge Fund
  • Leader Capital Corp., Vancouver, MF Mgr
  • Leonard Rickey Investment Advisors, PLLC, Yakima
  • Lin Capital Management, LLC, Issaquah, Hedge Fund
  • Long Term Investors, LLC, Wenatchee
  • Martin Nelson & Company, Inc., Seattle
  • McBee Advisors, Inc., Bellevue
  • McIlrath and Eck, LLC, Arlington
  • Mellor & Associates, LLC, Bellevue
  • Meridian Wealth Management, LLC, Bellevue
  • Moe Investment Management, LLC, Spokane
  • Monson Wealth Management, Inc., Kennewick
  • Moore Wealth Management, LLC, Renton
  • Morris Asset Management, Bellevue
  • Murphy Investment Management, LLC, Spokane
  • Nelson Financial Management, LLC, Bellevue
  • Nierenberg Investment Management Company, Inc., Camas, Hedge Fund
  • NUKU Asset Management, Inc., Bainbridge Island
  • NWT Advisors, LLC, Bellevue
  • OAG Wealth Management (Omega Advisory Group, LLC), Kirkland
  • Olympic Wealth Management, LLC, Bothell
  • Omega Financial Services, Kirkland
  • Opal Advisors, LLC, Bellevue
  • Ophrys, LLC, Seattle – hedge fund
  • Pacific Point Advisors, LLC, Renton
  • Palindrome Capital Management, LLP, Spokane
  • Pamria, LLC, Seattle
  • Parker Financial, LLC, Silverdale
  • Percension Wealth Advisors, LLC, Seattle
  • Pi Square Capital, LLC, Bellevue
  • Prevail Wealth Management, LLC, Kirkland
  • Private Income Capital Management, Seattle
  • Private Wealth Management Solutions, LLC, Bellevue
  • Pro Money Management, LLC, Walla Walla
  • Professional Investment Management Services, PPLC, Kennewick
  • Rainier Wealth Management, LLC, Mukilteo
  • Reppond Investments, Inc., Bellevue
  • Sapphire Star Capital, LLC, Kirkland – hedge fund
  • Seagrass Advisors, LLC, Bellevue
  • Selkirk Wealth Advisors, LLC, Spokane
  • Signal Financial Planning, LLC, Issaquah
  • Sound Financial Center, Sequim
  • Sound Financial Planning, Inc., Mt. Vernon
  • South Beach Capital Management, LLC, Bainbridge Island
  • Steward Capital, LLC, Kirkland
  • Summit Wealth Solutions, LLC, Bellevue
  • Sun Asset Management, Inc., Bellevue, $1 mil
  • TFS Advisors, LLC, Edmonds
  • The Advisor Benefits Group, Inc., Kennewick
  • The Hydra Value Group, LLC, Kirkland
  • Timepiece Financial Planning, Inc., Vancouver
  • Total Advisor Network, LLC, Spokane/Tacoma
  • Tracker Research, LLC, Seattle – Hedge Fund
  • Vail Ridge Capital, LLC, Bellingham
  • Viewpoint Capital Management, LLC, Seattle
  • Viridian RIA, LLC, Bellevue
  • Vita Intellectus, Kirkland
  • Vorpahl Wing Securities, Inc., Spokane
  • W Tax & Wealth Advisory Group, Inc., Vancouver, WA
  • Waits Investments, LLC, Spokane
  • WaterHill Capital, LLC, Seattle – Hedge Fund
  • WealthCollab, LLC, Bellevue
  • Westface Financial Advisory, Vancouver
  • Westriver Management, LLC, Kirkland

 

Firms dropped from our list, have either closed their doors in '17, have no recent ADV on file, or have no active AUM

  • Advocate Wealth Management, LLC, Sequim – no ADV
  • CMG Advisors, LLC, Bellevue – no ADV
  • Downriver Capital Management, LLC, Spokane – no ADV
  • Genesis Capital, LLC, Gig Harbor – no WA state presence
  • Guardian Plus, Inc., Bothell – no ADV
  • Northwest Investment Consulting, Inc., Seattle – Not a wealth manager
  • Northwestern Mutual Investment Services, LLC, Seattle/Spokane – no AUM
  • Opes Advisors, Inc., Enumclaw/Seattle/Kirkland – no ADV
  • Ronald Blue Trust, Bothell – no ADV
  • VI Capital Management, LLC, Newman Lake – no ADV

 

Top Ten largest AUM increases (min. $1 billion in ‘17 AUM)

Firm AUM Increase (in millions)
1. Russell Investment Group, Seattle +$19,656
2. Edge Asset Management, Inc., Seattle +$4,080
3. Columbia Pacific Wealth Management, Seattle +$1,020
4. Pugh Capital Management, Inc., Seattle +$1,000
5. Milliman, Inc., Seattle +$853
6. Edge Asset Management, Inc., Seattle +$947
7. KMS Financial Services, Inc., Seattle +$756
8. Strategic Income Management, LLC, Seattle +$590
9. Threshold Group, LLC, Seattle +$533
10. Prime Advisors, Inc., Redmond +$516

Top Ten largest percentage increase in AUM (min. $1 billion in ‘17 AUM)

Firm AUM Increase (in millions)
1. Strategic Income Management, LLC, Seattle +71%
2. Columbia Pacific Wealth Management, Seattle +51%
3. Taiyo Pacific Partners, L.P., Kirkland +47%
4. Northwest Asset Management, Mercer Island +36%
5. The Pacific Financial Group, Bellevue +28%
6. D’Annunzio Consulting Group, LLC, Tacoma +23%
7. Merriman Wealth Management, LLC, Seattle +20%
8. Threshold Group, LLC, Seattle +19%
9. Columbia Pacific Advisors, LLC, Seattle +18%
10. KMS Financial Services, Seattle +15%

Top Ten largest percentage increase in AUM ($100mm - 999mm in ‘17 AUM)

Firm AUM Increase (in millions)
1. E.K. Riley Investments, LLC, Seattle +160%
2. Signia Capital Management, LLC, Spokane +127%
3. Kiley Juergens Wealth Management, LLC, Olympia +104%
4. Fulcrum Capital, LLC, Seattle +88%
5. DH Partners, LLC, Seattle +70%
6. Synergy Financial Management, LLC, Seattle +62%
7. Investor’s Fiduciary Advisor Network, LLC, Snoqualmie +60%
8. Bear Mountain Capital, Seattle +48%
9. Talbot Financial, LLC, Bellevue +41%
10. Vestory, LLC, Bellevue +39%

 

Company News

Vestory, LLC - The Puget Sound Business Journal says we are the 26th Fastest Growing Privately Held Company in the State of Washington.

 

Asset & Wealth Management Trends in 2017

Top Wealth Managers

Though the size of a Wealth Management Firm is by no means an absolute measure of success, being one of the largest firms is a high recognition. The largest firms typically enjoy a competitive advantage in resources, negotiating leverage, and may possess the ability to attract top talent.

Every year, our Washington State Money Managers Ranking List, is comprised of more than 400 participating firms, ranked by AUM size. This year, the number of firms with AUM of at least $1 billion increased by two to 63 firms. 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 2017, the top 50 firms on our list had a total AUM of $700 billion, versus $579 billion in 2016, an increase of +$121 billion. On average, the top 50 firms had $14 billion in AUM in 2017, as compared to a $11.58 billion average in AUM for the top 50 firms in 2016.

 

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. We observed more than $3.8 billion in client asset movements in 2017, or as some like to call it, ‘Money With Feet’. We are expecting a continued, strong demand for such ‘Buy Vs. Build’ activity in 2018, especially since the markets are closing strong in 2017. Subsequently, we expect competition for the HNW or Ultra-HNW client accounts to be ratcheted up even further in 2018.

Similarly, the demand is very strong for HNW Business Development professionals and asset gatherers with portable relationships, extending this trend into its eleventh year. Senior advisors and their wealthy clients who may be recovering from market-related losses or low returns may be seeking a more stable, safe haven and, perhaps, a larger, more diversified platform. We also expect the demand to continue for individuals with demonstrated relationships with the stickier money of endowments, foundations and pension plans. Due to this year’s chaotic markets, the needs of asset and wealth management organizations have grown increasingly complex. We here at RAH Financial strive to remain uniquely positioned to anticipate and satisfy their evolving 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 2018, 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:

  • 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.

Stay tuned.


View Washington State Money Managers Rankings List

Finding Top Talent

"The key for us, number one, has always been hiring very smart people."

- Bill Gates, Microsoft

Contact

Email: Roger@RAHFinancial.com
Phone: (253) 277-3731
Mobile: (206) 679-5955
Fax: (253) 981-4939