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Company Details
Modern Wealth Management (MWM) was founded in December 2022 by former United Capital executives Mike Capelle, Gary Roth, and Jason Gordo. Their mission is to deliver comprehensive wealth management services through a collaborative, team-based approach. Modern quickly gained success when acquiring Barber Financial Group in early 2023, adding $1.5 billion in client assets. Since then, the firm has completed a total of nine acquisitions, with four more anticipated to close in 2024.
Headquartered in Lenexa, Kansas, MWM has expanded its presence with offices in California, Indiana, Iowa, Missouri, Michigan, New York, and Virginia. By the end of 2024, the firm expects to expand to 13-14 office locations, employ 150 people, and manage $6-7 billion in client AUM. Looking ahead, MWM has set an ambitious goal of overseeing more than $28 billion in client AUM by the end of 2028. To achieve this, they are seeking exceptional teams and professionals who are driven to serve clients, mentor their teams, and contribute to the growth of the firm. Joining MWM early offers significant equity opportunities, positioning partners advantageously compared to larger, more established Registered Investment Advisors (RIAs).
Modern Wealth Management serves a diverse client base, including Ultra High Net Worth, High Net Worth, and Mass Affluent individuals. Typical clients include individuals seeking comprehensive financial planning, tax planning, estate planning, and investment management services. Modern Wealth Management positions itself in the market by offering a comprehensive client experience through a team-based approach.
The firm emphasizes its unique value proposition of specialized expertise and a standardized process for financial planning. They provide a broad range of services including investment management, tax planning, financial planning, risk management planning, and estate planning. The firm also employs a centralized concierge team to handle initial client interactions and create a directionally accurate financial plan before the client meets with an advisor. This model aims to enhance organic growth and provide comprehensive, team-based client service.
Modern Wealth Management (MWM) is committed to helping clients build, manage, and preserve their wealth while achieving their financial goals. They offer a centralized portfolio management model guided by the MWM Investment Committee, which oversees the development and implementation of investment strategies. MWM's general philosophy is centered around understanding clients' goals through financial planning and designing an investment plan to achieve those goals. They emphasize reducing tax burdens and preparing for financial surprises. The firm assigns a dedicated service team to each client, including a planner, investment strategist, CPA, and risk assessment specialist.
Using both in-house and external managers, they offer a wide and deep investment management menu, ranging from basic asset allocation models to sophisticated strategies with options overlays and yield enhancers. Platform strategies are available to all clients, regardless of their asset size. MWM implements their investment philosophy through a centralized portfolio management model, guided by the MWM Investment Committee and managed by the Investment Management Team. They use model portfolios for clients but also offer opportunities for portfolios to be crafted with both individual stock and bond accounts. Direct indexing with tax loss harvesting and personalized overlays are available as well as access to laddered bond solutions and alternative asset classes.
The investment team at Modern Wealth Management is led by Stephen Tuckwood, CFA- Director of Investments. "Tuck", brings nearly two decades of experience, including roles at Goldman Sachs' Alternative Investments & Manager Selection Group and as Head of Research at United Capital. Tuckwood holds bachelor's and master's degrees in finance and is a Chartered Financial Analyst. The team is responsible for reviewing model investment strategies, determining asset allocation targets, selecting specific securities or funds, and monitoring portfolio performance. They assist with prospecting, ongoing service, and investment platform diligence. Advisor Support and Collaboration MWM collaborate closely with newly onboarded advisers during the transition and integration process, providing oversight and feedback to ensure prudent management of portfolios. Advisors are supported by a centralized concierge team that helps with onboarding and provides a directionally accurate financial plan before the first client meeting.
Locations
Company Videos
Acquisition Model
Full Acquisition Only
Modern is comfortable with an all cash acquisition, but offers equity as a part of their consideration. Standard equity ranges are ~20-25%.
Yes
Max Cash: 100%
Max Equity: 30%
While their deal structure can vary, Modern's standard deal terms are 80% of total consideration paid as closing conditions are met with ~20% held in retention for 12 months.
The owner's compensation model will largely be set with owner input around cash flow needs post-close. There is typically a minimum replacement cost level that will be assessed, which is approximately 20% of revenue. Following the first anniversary of the closing date, the owner is eligible to participate in the MWM Business Development Incentive Compensation Program which is a share of new client revenue from the account opening date as follows: 40% of first-year revenue, 30% of second-year revenue, and 20% of third-year revenue.
Mandatory Points of Alignment
Modern aims for consistent brand identity within the company, and typically asks all partners to adopt the brand day one. However, they recognize the possible need for a transitional period to integrate the brand.
To support its partners increase capacity and drive growth, Modern centralizes all Accounting, HR, Technology and billing functions.
Modern believes in providing additional services to it's clients beyond basic financial planning and portfolio management (ie offering tax preparation, risk management etc) however strongly believes in the advisors role to determine if and when those additional services are appropriate for their client.
Modern centralizes P&L management, however, partners will have visibility into their local P&L.
Modern asks all partners to adopt their client experience.
Modern Wealth Management (MWM) offers a comprehensive and client-centric approach to wealth management, emphasizing a team-based model that separates business development from client servicing. This structure ensures that clients receive specialized attention from a team of experts in various financial disciplines, enhancing both client satisfaction and advisor efficiency. Accordingly, MWM requests that all partners map to this service model soon after the partnership is consumated.
Modern offers an investment platform for advisors to use, and while they encourage partners to divest portfolio management to the central team are open to permitting partners to continue managing their legacy models subject to centralization of trade execution..
Advisor Value Proposition
Modern Wealth Management (MWM) offers a comprehensive and client-centric approach to wealth management, emphasizing a team-based model that separates business development from client servicing. This structure ensures that clients receive specialized attention from a team of experts in various financial disciplines, including financial planning, tax services, estate planning, and investment management. It also helps advisors focus on their highest and best use relevant to their personal career objectives.
Modern has a centralized planning team for partners to utilize as they see fit.
Modern Wealth Management (MWM) significantly reduces operational responsibilities for advisors by centralizing various functions and providing extensive support systems. Key elements include:
- Centralized Trading: MWM centralizes trading functions, allowing advisors to focus on client relationships and business growth.
- Concierge Desk: A centralized concierge desk handles initial client interactions, data gathering, and pre-first meeting preparations, effectively warming up leads for advisors.
- Pentagon Team Structure: Advisors are supported by Pentagon teams that include specialists in tax, estate planning, debt management, and investment management.
- Marketing and Organic Growth Teams: Located centrally in Lenexa, Kansas, these teams support lead intake, pre-first meeting discovery, and ongoing marketing efforts, including newsletters, podcasts, radio shows, YouTube channels, and digital marketing.
Quotes:
- "We have a centralized team that is the concierge desk where prospects are going to come to that desk." - Jason Gordo
- "We actually bring lead intake into that team and that team will actually take what is essentially like a pre-first meeting with a prospect and do discovery and information intake." - Gary Roth
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Comprehensive Service Offering: MWM enhances the service offering by including tax preparation and planning, advanced estate planning, risk management, and debt management, which can increases the services advisors can offer clients and thereby increase revenue.
Specialized Teams: Advisors benefit from a team of specialists, including CPAs, CFPs, tax professionals, estate planning specialists, debt specialists, and investment management specialists.
Organic Growth Support: MWM offers extensive marketing and organic growth support to it's partners, including a dedicated marketing team, a concierge desk for lead intake, and assist partners focus on achieving higher organic growth rates compared to the industry average.
Centralized Lead Generation: MWM leverages their "Marketing Hub" to facilitate central outbound marketing on behalf of their partners as well as handle lead intake, discovery, initial information gathering, prequalifying and screening prospective client's for advisors.
National Marketing Strategy: The firm invests in national marketing assets such as podcasts, radio shows, YouTube channels, and digital marketing to support organic growth.
Quotes:
"We actually bring lead intake into that team and that team will actually take what is essentially like a pre-first meeting with a prospect and do discovery and information intake." - Gary Roth
The leadership team of Modern is firmly committed to fostering the growth of its partners. Drawing on extensive experience in guiding companies through significant growth phases, the team is highly proficient in practice management protocols and best practices. As valued partners of Modern, partners will enjoy exclusive access to the application of established practice management processes that facilitate growth and streamline workflows, resulting in a more efficient work environment.
AUM Growth
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