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Brandywine Oak Personal Wealth, a registered funding advisory agency nestled within the Delaware Valley of Southern Pennsylvania, was based in 2108 by 5 breakaway wirehouse advisors with $500 million in consumer belongings between them.
The agency has grown by greater than 68% in simply 5 years, primarily by means of natural development, whereas including seven extra workers and creating an affiliated tax observe with three devoted accountants. Right now, Brandywine Oak oversees round $1.5 billion in belongings and co-CEOs Michael Henley and Alison Brooks count on to succeed in $5 billion over the approaching decade.
However not by attracting extra shoppers. The alternative, actually.
“We’re truly attempting to shrink the variety of shoppers that we work with,” mentioned Henley. “And improve the dimensions of these shoppers.”
If the agency’s median consumer has $3 million in manageable belongings, he defined, they’re focusing on shoppers within the $5 million vary. And when their median consumer reaches $5 million, they’ll be courting households with greater than twice that quantity.
“The extra we are able to go up-market, we discover these households have extra subtle planning wants which are a greater match for our ability set,” Henley mentioned, including that it additionally is smart from a capability standpoint. “You’ll be able to solely deal with so many households. In case your common consumer is $2 million, you most likely shouldn’t be onboarding a bunch of $1 million shoppers—however I see it taking place on a regular basis.”
Brooks and Henley mentioned they left positions at Merrill Lynch—the place every spent greater than a decade—as a result of they discovered they have been unable to provide goal and unconflicted recommendation beneath the captive wirehouse mannequin. They based Brandywine Oak with Chairman Steve Maconi, Tracy McGuire and Mark Jackson, all Merrill Lynch expats with 75 years of expertise between them.
“We’re now able to be on the identical facet of the desk because the shoppers,” Henley mentioned. “And we’re younger; we have now a protracted runway forward of us and in the end didn’t wish to be trapped into sure funding merchandise, sure recommendation, et cetera.”
One of many companies included on WealthManagement.com’s RIA Edge 100 record, created in partnership with Discovery Information, Brandywine Oak has grown at a considerably quicker tempo than its extra established friends, whereas additionally sustaining an above common client-to-advisor ratio and investing in skilled certifications.
In just some quick years, the agency has added and expanded providers and capabilities by means of considerate additions, ongoing skilled growth and a proactive staffing coverage to handle development.
In addition to monetary planning providers, Brandywine Oak at the moment presents funding administration, retirement planning, tax planning and preparation, insurance coverage and property planning, entry to sure banking providers and ongoing monetary training. The agency has native regulation and insurance coverage companies on retainer to offer the related experience and mandatory paperwork—however introduced taxes in-house 18 months in the past, launching an adjoining observe with CPA Chris Smith and three workers.
“That has been an enormous differentiator by way of aggressive benefit,” mentioned Henley, noting that the tax observe persistently units the agency aside in gross sales conferences from companies comparable to Merrill Lynch and Wells Fargo, in addition to bigger RIAs like Inventive Planning.
“What we underestimated,” he added, “was the overwhelming variety of shoppers that needed to right away swap over to having their taxes carried out. We anticipated round 10% within the first 30 days, and it ended up being nearer to 40%. So, it was quite a bit, however it was actually a game-changer.”
Each beneath the age of 40—together with 80% of the agency’s workers—Henley and Brooks undertaking a snug administration dynamic that deserves credit score for a minimum of a few of their success.
“She does all of the work, I take all of the credit score,” joked Henley. “It’s an amazing association.”
“Michael is the agency’s visionary,” mentioned Brooks. “He works with our most subtle shoppers and comes up with all these concepts which have actually been key to our development.”
“And Alison is aware of the best way to execute on these concepts,” Henley mentioned.
That co-management philosophy extends all through all the agency. Every consumer is roofed by a minimum of one lead advisor and two devoted associates and has entry to all of the experience and expertise Brandywine Oak has to supply.
“None of our advisors have their very own shoppers,” Henley mentioned. “They’re all shoppers of all the agency and that’s crucial.” He defined that the mannequin permits his workers to stay extremely concerned with every consumer whereas lessening the day-to-day workload for senior advisors who can focus their power on extra sophisticated duties for more and more subtle wants.
Inside group constructing can be an vital exercise at Brandywine Oak, he mentioned—and an excellent enjoyable one with a predominantly millennial workers. One current tour took all the agency to the Porsche Expertise Middle in Atlanta, Ga.
“We had all 12 individuals down there racing ridiculous vehicles all day,” he mentioned. “That form of factor most likely wouldn’t be attainable if we had a group that was a lot older.”
“The group [at Brandywine Oak] is nearly as good as any advisory group we’ve labored with within the business,” mentioned Shirl Penney, chief govt officer for Dynasty Monetary Companions, a tech-enabled observe administration platform devoted to serving to RIAs launch independently. Henley and Brooks selected Dynasty as a result of the platform was “mainly the one recreation on the town” that might permit them to retain management of the enterprise.
“Significantly given their age, it’s actually been an incredible development story,” Penney mentioned. “I believe it’s distinctive at a time when lots of advisors are getting giant belongings constructed up shortly by means of M&A and inorganic development. Their natural development has been very spectacular, and I believe that basically differentiates them versus a few of their friends within the house.”
In 2021, the agency acquired a five-person group from Wells Fargo led by Lisa Quadrini. She reached out to Brandywine Oak searching for a greater succession plan and transitioned her $250 million guide of enterprise in April. Establishing a satellite tv for pc workplace in Kiawah Island, SC, the deal is the one M&A transaction the agency has accomplished so far.
Whereas they don’t anticipate extending the contract with Dynasty to make the most of the platform’s M&A capabilities, Henley and Brooks mentioned they count on to launch their very own inorganic technique in earnest after that settlement sunsets later this 12 months.
“We’re very a lot trying ahead to releasing the shackles and transferring on,” mentioned Henley, describing his group as “do-it-yourselfers.”
Noting tentative plans to ascertain a everlasting workplace in Charleston, SC, he recognized upstate New York is one other area of curiosity for growth. Henley mentioned the agency will proceed to focus on breakaway advisors however is open to purchasing an present RIA.
“Wirehouses make it straightforward,” he mentioned. “We communicate that language, however they’re additionally straightforward to promote in opposition to as a result of that triangulation of recommendation shouldn’t be there. And, extra so, most wirehouse advisors wish to go away most wirehouses. They need a succession plan the place they know their shoppers will probably be taken care of; that was the catalyst for Lisa approaching board.”
“Our massive objective now’s persevering with to rent,” Henley mentioned. “We have acknowledged that we do not wish to be able of weak point by way of hiring and would fairly have too many on workers than too little.”
“We wish to rent upfront of the necessity,” nodded Brooks.
The agency already boasts CFP, CRPC, RMA and CPA certifications, however is at all times trying so as to add extra.
“We’d like to seek out somebody who’s a licensed divorce monetary analyst,” mentioned Henley. “Or a licensed belief monetary advisor, as an illustration. I believe the extra specialties you possibly can have, the higher.”
Along with a concentrate on offering extra specialised providers and including experience, the Brandywine Oak group goes out of its method each quarter to search for methods to enhance, improve or improve present providers. This may embody easy, value-add providers such offering fraud-proof pens, serving to shoppers assign legacy designees to their cell telephones or figuring out unclaimed belongings.
Because the agency’s resident “visionary,” Henley mentioned he will get a lot of his inspiration from semi-annual Mastermind conferences with different monetary providers professionals, one thing he whole-heartedly recommends to different companies searching for development.
“The primary factor that I’d encourage any advisor to do is type a Mastermind of six to eight different like-minded advisors round your age who’re development oriented, possibly at completely different RIAs, and get collectively at an Airbnb a few times a 12 months to share finest practices and rent a pair coaches,” he mentioned.
“I’m going to lots of conferences and people are additionally good studying experiences, however the vibe at a Mastermind is extra open and also you’re more likely to get true recommendation. That has been invaluable.”
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