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What Small RIAs Do to Grow Assets

July 11, 2017

There’s no one best way to ensure healthy growth for small RIAs, which are some of the fastest-growing financial services companies in the nation, according to Financial Advisor magazine. But there are plenty of ways you can do it.

For some RIAs with less than $200 million in assets, all it takes is organic growth, the publication writes. That was the case for Fiduciary Wealth Management in Alexandria, Va., which came in first in asset growth among more than 600 firms analyzed by Financial Advisor magazine, growing assets by 175% last year. The firm, which manages $113 million, focuses on what it views as an underserved segment — smaller retirement plans, Christopher Broderick, president of the firm, tells the publication. The company added a third advisor, boosted assets per client by almost 30% and more than doubled the number of clients, according to Financial Advisor magazine.

Falcon Wealth Planning in Ontario, Calif., which doubled its assets in 2016, took a different tack, the publication writes. The RIA, which managed $69 million by the end of last year, went aggressively for referrals and managed to quadruple its clients’ average assets as well, according to Financial Advisor magazine. Gabriel Shahin, the firm’s principal, also started teaching finance at a university and appearing on a radio show, he tells the publication.

Inspire Investing in Hollister, Calif. meanwhile, grew its assets by 131% last year by going after a very niche market: clients who want to invest based on environmental, social and governance considerations from a conservative viewpoint, Financial Advisor magazine writes. Inspire’s CEO Robert Netzly tells the publication he hopes to grow the $55 million RIA into a $1 billion practice in the next decade.

“We are convinced that investing using Biblical standards is going to be the fastest-growing ESG investment in the future,” Netzly tells Financial Advisor magazine.

By Alex Padalka
  • To read the Financial Advisor article cited in this story, click here.