Editor’s Comment: As part of a series analyzing the Californian wealth management industry, here Family Wealth Report shares insights from firms on their Californian operations. Although by no means inclusive, the information is intended to give readers an idea of the many flavors of wealth manager flourishing on the West Coast. To view the first part click here.
Rothstein Kass Family Office Group, part of the eponymous consultancy firm, has offices in Wilshire Boulevard and Montgomery Street, spots the firm chose due to their “thriving business communities.”
It segments the state into: Southern California, with a strong concentration of business managers, legal and investment advisors, and “gatekeepers” to the wealthy; Central California, “home to an enclave of regional and national banks” and investment advisors – whose high level staff and clients qualify as potential clients; and Northern California, “one of the most active markets for multifamily office operations in the US.”
As Rothstein Kass does not offer investment advice, it views part of its niche as providing outsourced services to single-family offices – usually with around $100 million assets – and investment managers. It counts athletes and entertainers among its California client base, which comprises over a dozen ultra-wealthy clients.
Its provides services including balance sheet management, liquidity cash management, bookkeeping, income and estate tax planning, investment reporting and general project management.
Northern Trust, the Chicagoan stalwart, entered the California market in 1987 with a Santa Barbara office.
“When Northern Trust opened its first California office in the late 1980s, the average price of gas was less than $1 per gallon, the internet was in its infancy and the first President Bush was in office,” Steve Bell, chairman and CEO of the west region, told Family Wealth Report.
Since then, much has changed, and with it the firm’s coverage has expanded to ten offices in five markets (San Francisco, Santa Barbara, Los Angeles, Orange County and San Diego), staffed with around 260 employees.
Strategically, Northern Trust views California as part of the West Region, which also includes Washington, Nevada, Arizona, Colorado and Texas, all of which Bell heads up. It then breaks California down into Northern California, Santa Barbara, Los Angeles, Orange County and San Diego.
Its offers a lifetime goals and values-based approach to wealth management, says Bell, covering financial planning, private and business banking, investment management, trust and estate services, advisory, foundation and institutional advisory services.