Wealth Managers Have Lofty Growth Plans

Wealth management professionals have lofty growth plans for their businesses despite market uncertainties this year, according to Barron’s.

Edward Jones plans to expand its customer base as well as its portfolio of new practice models and advisors’ positions, David Chubak, the firm’s U.S. business leader, told the publication.

More than 1,400 advisors have switched to the company’s new models, which include advisor teams and multi-advisor teams, as well as positions like associate financial advisor and registered branch associate, according to Chubak.

The firm’s mission is “to do it all over again,” he told Barron’s. The firm also intends to increase its advisor ranks by “around 3% in 2024 and over the coming years.”

MAI Capital Management, which had net organic growth of around 7% in 2023, hopes to increase that to 10% this year, in part by capitalizing on its success with Fidelity and Charles Schwab referral channels, according to managing partner Rick Buoncore.

The firm is on pace for 10 to 12 acquisitions this year, with the objective of producing an additional $20 million in pre-tax earnings, half of which is expected to be achieved in the first quarter, Buoncore added.

MAI has already announced two deals this month, both in Cincinnati, including the acquisition of $144 million investment management firm WaterStone Investment Counsel and $1.4 billion Madison Wealth Management.

Scott Tiras, president of Ameriprise practice Tiras Wealth Management, said his team doesn’t set specific targets but is focused instead on “servicing our existing clients and providing an experience that we think they can’t find anywhere else.”

After increasing its assets by $128 million in 2023, the firm expects growth in the $150 million to $175 million range, with the goal of acquiring 15 to 20 clients worth $5 million or more.