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RIA Edge 100: The Mather Group

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RIA Edge 100: The Mather Group

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The Mather Group CEO Chris Behrens gained’t disclose precisely how his lead technology course of operates … but it surely’s clearly working.

TMG elevated consumer property by greater than 700% over the previous 5 years, bolstered by its entrance into the mergers and acquisitions market, a fruitful Constancy referral program and an enigmatic lead-generation engine that has been scaled up over the past 4 years.

“It’s our secret,” Behrens mentioned of the RIA’s lead technology initiative, noting that it introduced in roughly 900 new purchasers over the past two years and requires 30 interns every summer season to handle. Describing the method as “well-defined” and “capable of establish purchasers which can be much like these we have now,” he declined to expose extra.  

“If you wish to develop,” he suggested, “you need to have multiple technique.”

Behrens took the helm of TMG in late 2019, a couple of 12 months after the agency accomplished its first acquisition. On the time, Behrens was an already seasoned govt, having held the highest spot at a number of advertising and marketing and know-how corporations within the Chicago space.

His appointment heralded the “subsequent section of strategic progress,” mentioned the late Stewart Mather, who based the Chicago-based observe in 2011 with simply $150 million in property.

“The Mather Group is without doubt one of the only a few corporations that actually has knowledgeable CEO,” mentioned Steven Levitt, founder and managing director at Sutton Park Advisors, an M&A advisory agency with a staff of bankers devoted to the RIA area. “He had familiarity as a consumer of wealth administration himself, however he labored in different industries all over the world and actually brings an attention-grabbing perspective on the best way to run an excellent enterprise.”

Previous to the deal to purchase Berman Funding Advisors in October 2018, TMG had a 52% natural progress price and $1.8 billion in consumer property, in addition to 55 staff and a presence in 4 U.S. markets, together with Atlanta, Dallas and Houston. The Berman deal added one other $1 billion and a fifth location in San Francisco’s Bay Space.

Following 17 subsequent acquisitions, two of which had been earlier than Behren’s arrival, 11 new places of work have been established in as many regional markets. The agency now employs 154 professionals—together with 65 client-facing advisors and 15 govt management positions—overseeing $8.7 billion in AUM throughout roughly 4,000 purchasers. Acquired corporations undertake TMG branding and the agency’s know-how stack, in-house companies and a set of funding choices however Behrens mentioned greatest observe options introduced by incoming advisors are all the time welcome.

In keeping with information analyzed by RIA Edge and WMIQ in partnership with Discovery Information, TMG elevated AUM by 715% between 2017 and 2021, and 180% 12 months over 12 months between 2018 and 202­1. It added seven extra corporations and one other $1.8 billion in 2022.

On the natural aspect, Behrens credit the agency’s service mannequin and in-house lead machine, augmented by “a really shut working relationship” with Constancy’s Wealth Advisory Options referral program.

“The Mather Group has accomplished terribly nicely within the Constancy program,” mentioned Levitt. “They’re one of many high contributors and recipients of recent enterprise leads.”

The majority of TMG’s purchasers are staff of Fortune 2000 corporations and enormous non-public corporations with important retirement planning wants, however Levitt mentioned the agency has been working to develop that focus and supply its household office-style companies to a wider subject of rich traders.


“We do taxes for about 70% of our purchasers,” mentioned Behrens, characterizing the typical TMG consumer as round 61 years previous, with between $2.5 million and $2.7 million invested with the agency outdoors of its household workplace observe.

TMG’s core focus is monetary planning and serving to purchasers work by a profitable retirement and subsequent legacy planning, he mentioned, bolstered by a number of different capabilities, together with funding administration and tax technique and preparation.

“That’s all a part of our price construction. I believe it is what makes us distinctive,” mentioned Behrens. “Therefore, a part of the rationale for the expansion that we have been lucky to realize.”

It didn’t take lengthy for personal fairness to take discover. Within the spring of 2022, TMG was acquired by non-public fairness investor Vistria Group. TMG is at the moment one among three corporations, and the one advisory agency, in Vistria’s monetary companies portfolio.

“This partnership is in line with our long-term thesis in regards to the worth of, and tailwinds in, wealth administration,” Vistria Co-Head of Monetary Companies Boris Rappaport mentioned on the time. “TMG’s tradition of service, innovation, skilled growth and progress offers an awesome alternative to copy in markets throughout the U.S.”

“Scaling and rising a enterprise—and doing it profitably—is loads of laborious work,” Behrens mentioned.

He mentioned TMG is continually growing and streamlining its Salesforce-based tech stack, its second-largest monetary funding after payroll, and has an outlined course of to establish areas the place extra staffing is required in all areas of the enterprise. The agency has positions devoted to human sources, enterprise growth and M&A, in addition to managing the agency’s rising divisions—wealth administration, tax companies, varied funding methods and the TMG household workplace.

“They proceed to improve the expertise,” mentioned Levitt. “I do know that they not too long ago introduced in a brand new chief monetary officer they usually’re on the lookout for a chief funding officer. They’re on the lookout for a chief income officer.”

“We have been very lucky to have the ability to rent the very best expertise that is out within the market,” mentioned Behrens. “It is a staff of those who work collectively below a single imaginative and prescient, mission and goal to all the time do what’s in the very best curiosity of our purchasers. And that is actually our guiding mild. With out the folks and with out the staff that we have now, we’d not be as profitable we’re.”

 

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