Ep 365: Scaling Expanded Advice Services To 100+ Team Members In A $5B AUM Enterprise With Rob Nelson

Financial Advisor Success

Michael Kitces

News, Business, Entrepreneurship, Business News

4.8 • 696 Ratings

🗓️ 26 December 2023

⏱️ 88 minutes

🔗️ Recording | iTunes | RSS

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Summary

Rob Nelson is the CEO and Founder of NorthRock Partners, an RIA based in Minneapolis that oversees $5 billion in assets under management for 1,500 client households. Rob stands out in the advisory landscape by offering a wide array of services from bill paying to tax preparation, akin to a 'personal CFO'. He achieves this while maintaining competitive AUM-based fees, capitalizing on economies of scale to provide a comprehensive client experience at a cost similar to less extensive firms.

Listen in as Rob shares insights into NorthRock Partners' impressive growth from $1 billion to $5 billion in AUM over six years, driven by organic growth, strategic acquisitions, and robust client referrals from high-earning individuals. He also discusses the firm's structure, which empowers advisors with centralized expert teams while maintaining direct client relationships, and his decision to partner with a holding company for long-term expansion. You'll learn about NorthRock's hiring strategies, the importance of practice for developing advisors, and Rob's belief in the firm's substantial untapped potential for future growth.

For show notes and more visit: https://www.kitces.com/365

Transcript

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0:00.0	Welcome to the Financial Advisor Success Podcast, where you go behind the scenes with financial planner,
0:08.4	speaker and consultant Michael Kitsis to hear stories of how leading financial advisors
0:13.6	navigated the inevitable challenges that arise on the path to success and get insight from leading
0:19.2	industry consultants about how to break through to the
0:22.0	next level in your advisory business. And now here's your host, Michael Kitsis. Welcome, everyone.
0:29.1	Welcome to the 365th episode of the Financial Advisor Success Podcast. My guest on today's
0:34.7	podcast is Rob Nelson. Rob is the CEO and founder of North Rock Partners, an RAA based in Minneapolis, Minnesota,
0:41.2	that oversees $5 billion in assets and management for 1,500 client households.
0:46.3	What's unique about Rob, though, is how while many advisory firms increasingly talk about
0:50.1	being more than just their client's financial advisor, and instead their entire personal CFO.
0:55.4	Rob has been able to scale North Rock up to $5 billion of AUM to offer such a breadth of services,
1:00.3	from bill paying to tax preparation, to supporting clients and their bank lending,
1:04.6	all while still charging an AUM fee that is similar to firms with a less comprehensive experience
1:10.0	by leveraging the economies of
1:11.6	scale he's been able to create his firm size. In this episode, we talk in depth about the growth
1:17.3	strategy that Rob's firm has executed over the past six years to grow from $1 billion to $5 billion
1:21.7	in AUM, including organic growth from current clients, many of whom are corporate executives
1:26.2	and professional athletes with very strong cash flow and ongoing contributions and savings.
1:31.2	Strong new client asset flows from referrals, as current clients refer peers who could benefit
1:36.0	from North Rock's high touch service in their personal corporate and athlete circles, and
1:41.0	opportunistic acquisitions of both larger and smaller practices that are willing to do a
1:46.0	transaction with Rob because they want to offer their clients the comprehensive service that
	...

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