Rockefeller Capital Management, an offshoot of Rockefeller & Co., once the family office of oil tycoon John D. Rockefeller, launched with about $18 billion under management in March 2018 with the backing of hedge fund Viking Global Investors.
The wealth management firm is headed by president and CEO Gregory Fleming, who previously was president of Morgan Stanley Wealth Management and Morgan Stanley Investment Management. Prior to that, he was president and chief operating officer of Merrill Lynch.
After Fleming joined Rockefeller he immediately began pulling in top talent from his former wirehouse employers, and he set a lofty goal of growing assets under management to $100 billion within five years.
Among the first wave of hires was Chris Randazzo, managing director, head of wealth management and head of technology and operations. Randazzo joined from Morgan Stanley, where he was chief information officer for Global Wealth Management and Investment Management.
In a Q&A, Randazzo discusses the firm’s status, its focus and where it's headed.
Financial Advisor: One of the goals that was set when Rockefeller Capital Management opened in 2018 was to reach the $100 billion AUM mark within five years. What is your AUM today, and are you on track to meet that goal?
Chris Randazzo: Yes—we are privileged to help our clients reach their financial goals and remain on track with respect to our five-year goal. As of May 18, 2020, we are responsible for roughly $43.36 billion in client assets.
FA: How many teams and advisors/brokers have been recruited since CEO Greg Fleming came on board in 2018? How many have been recruited in 2020? Is there a target advisor headcount?
Randazzo: We currently have 39 private wealth advisor teams; 24 teams have joined us so far in 2020. There is no advisor headcount target. Instead, we are focused on finding advisors who, at a practice level and personally, are a great fit for our company. The goal is finding the right people who fit our culture, not finding a specific number of people.
FA: What has been the impact of Covid-19 and the upheaval in the economy and market on the business? How was the firm able to navigate through the pandemic?
Randazzo: Fortunately, from a business perspective there has been very little impact. Thanks to having great people on our team and a flexible technology platform that allows us to work anywhere with no loss of productivity, we shifted rather effortlessly to a work-from-home situation. This has included the ability to bring new teams to our company, which has continued without interruption in 2020. We remain focused on the health and safety of our employees and continue to make that our highest priority.
FA: Rockefeller Capital Management has aggressively recruited many “best-in-class” advisors. It has been written that CEO Fleming has been extending deals to these private wealth brokers that can reach upwards of 200% of their trailing 12-month production. Can you share the firm’s recruiting offer?
Randazzo: We are very focused on bringing to Rockefeller top advisors with extensive experience and a very sophisticated skill set, and we are offering compensation that we feel is competitive and appropriate. The value proposition for the advisors who join us has as much – if not more – to do with the opportunity we offer them to serve their clients and grow their businesses. For example, our technology has enabled advisors to communicate with and service their clients seamlessly throughout the pandemic. Additionally, the investments we can provide on our platform are attractive to advisors who want to offer unique opportunities to their clients.
FA: In the beginning, you were targeting multimillionaires/billionaires; now it seems like you are going after the guy next door with $4 million or $5 million. What prompted that change?
Randazzo: Our approach from the beginning has been to empower our advisors to determine whether the resources of Rockefeller Capital Management make sense for a potential client. Our advisors are among the most accomplished and sophisticated professionals in our industry. We have every confidence in their ability to determine when the resources of Rockefeller make sense for a client or a potential client.
FA: We see a lot of people leaving brokerage firms and starting their own business. Do you think the old brokerage model is broken?
Randazzo: Business models evolve and adapt based on the needs of the market they serve, and Rockefeller was created as part of that evolution. We saw the need and opportunity for a client-centric company that serves very specialized entrepreneurial advisors who can deliver highly customized solutions. Through our platform, we make that possible and the advisors who have joined us see and appreciate the results.
FA: What is the long-term goal? Is Rockefeller Capital Management going to be a RIA only, a hybrid, or is it going to keep the brokerage license?
Randazzo We think we have created something new and unique, and that’s exciting for clients and for us. I think that’s evident in our ability to attract not only top advisor talent but also some of the industry’s most experienced and accomplished professionals in technology, operations, and investments. Everyone at Rockefeller Capital Management is focused on creating something new that enables us to bring our clients opportunities they can’t get anywhere else, and our advisors are excited and energized by the platform we’ve created.
FA: To further that point, Is the goal to be like a Merrill Lynch or an Edelman Financial Engines?
Randazzo: We do not define ourselves in comparison to anyone else. We are trying to be the very best version of who we are by seeing around corners for clients and providing them with solutions and options which support their specific needs.
FA: How many locations do you have? Also, last September you acquired Financial Clarity Inc., a multi-family office in Silicon Valley. Can you elaborate on the multi-family approach?
Randazzo: We are currently operating in 15 locations across the U.S, with plans underway to open additional locations in 2020. In 2021, we will continue to expand strategically into communities where we believe there are potential clients who can benefit from our services and where the Rockefeller brand will thrive. Our Global Family Office model seamlessly integrates private wealth and family office services, resulting in a set of highly customized, bespoke capabilities that offer clients and their families a holistic experience across their financial lives.
FA: The Rockefeller family has been associated with sustainability for a long time, and with ESG investing gaining traction today, especially among the younger generation, what is Rockefeller Capital Management’s attitude toward ESG?
Randazzo: The Rockefeller family's early vision that investments can catalyze positive change has given us a considerable head start on an ESG investing approach that most of the competition is still trying to size up. Our asset management team, Rockefeller Asset Management, has a 30-year track record managing a Global ESG Equity strategy rooted in ESG-integrated analysis and deep shareholder engagement. To deepen and expand our commitment and focus across the firm, we have created the Sustainable Investing Leadership Coalition, a group that oversees the strategic execution of sustainable investing at Rockefeller. Together with the Coalition, we are focused on three key outcomes: expanding our sustainable investment solutions; deepening understanding of how sustainable investing can drive not only positive impact but also performance; and making ourselves known globally as industry leaders. Because we also recognize that ESG is an area of high priority for younger generations of the families we serve, we also benefit greatly from the guidance we receive from our Next Generation Advisory Council, a group of individuals who convene regularly to address the diverse topics that are critically important to our clients and future generations, in the U.S. and globally.
FA: What kind of clients are you looking to serve? Is it someone a little more successful than the guy down the road who has three hardware stores and $3 million or someone more successful like the business executive with $5 million or more?
Randazzo: We trust our advisors to make the right choice when deciding when their business practice and Rockefeller make sense for a client, and generational family wealth can be accumulated in a variety of fashions. All of our clients share the desire for advice and counsel that will help them make good decisions in a rapidly changing world, and our advisors deliver that every day.
FA: How much of your client base is the Rockefeller family and what is the family’s asset makeup?
Randazzo: We take client confidentiality very seriously and would not share that information for any of the families and clients we serve.
FA: Are you under the same umbrella as the old Rockefeller and Company?
Randazzo: We acquired Rock & Co. in 2018 and today, under the umbrella of Rockefeller Capital Management, we are building on this incredible foundation to expand our capabilities for institutions and ultra-high-net-worth individuals via our asset management, strategic advisory and broker-dealer businesses to meet the needs of ultra-high-net-worth individuals.
