Ep 380: Expanding Capacity For $500M Of Organic AUM Growth In Just 4 Years By Increasing The Density Of Team Talent with Andrew Leonard
Apr 9, 2024
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Andrew Leonard, Managing Partner of Geometric Wealth Advisors, talks about how his firm tripled AUM in 4 years by focusing on team talent density, hiring, and training. He discusses the challenges of growing assets under management, integrating tax services, and maintaining a high-touch client experience. The podcast also explores remote team management, specialization, and navigating the 'dangerous middle' phase of firm expansion.
Geometric Wealth Advisors tripled AUM in 4 years by prioritizing team talent density through careful hiring and training processes.
Firm provides high-touch services to consulting firm clients, offering tailored solutions and unique investment opportunities for a comprehensive service delivery.
Strategic growth management involves limiting new client onboarding to balance opportunities with team capacity, focusing on ideal client fit and service quality.
Deep dives
Unique Growth Strategy: Tripling AUM in Four Years
Geometric Wealth Advisors managed to triple its assets under management (AUM) in the last four years by adopting a unique approach derived from management consulting practices. The firm focuses on increasing the density of talent within the team before deciding on new client acquisitions. This strategy involves deliberate hiring, training processes, and maintaining a strong company culture despite operating virtually.
Geometric Wealth Advisors emphasizes high-touch services for their specialized niche, catering primarily to partners at top consulting firms like Bain, BCG, and McKinsey. The firm shops for the best mortgage rates for clients, handles tax services in-house, and integrates unique private equity investment opportunities into the portfolio. This tailored approach ensures a comprehensive and proactive service delivery.
Managing Growth Challenges: The 'Dangerous Middle'
Navigating the 'dangerous middle' of growth from $200 million to $2 billion AUM, Geometric faces challenges of tighter profit margins during rapid expansion. Scaling requires substantial investment in people and technology, resulting in decreased margins initially. The firm strategically limits new client onboarding to maintain service standards and talent quality, balancing growth opportunities with team capacity.
Geometric Wealth Advisors brought tax services in-house to drive excellence and integration within client offerings. Despite warnings of the complexity and challenges of in-house tax services, the firm recognized the need to enhance client experience by offering seamless financial planning, portfolio management, and tax services under one roof. The specialized focus on tax complexities for consulting client segments ensures a tailored and comprehensive service offering.
Managing Growth & Client Referrals
The firm strategically manages its growth by determining the number of clients to onboard based on team capacity. Despite receiving numerous client referrals, the firm prioritizes ideal clients from its Cornich niche. Referrals outside the niche lead to responsible redirection to specialized advisors, demonstrating commitment to client fit and service quality.
Building a Remote Team & Focusing on People Management
The firm embraces fully remote work, leveraging it to cast a wider net for hiring. A key hiring strategy involves recruiting from consulting backgrounds and prioritizing people management skills. By hiring a COO with expertise in practice and people management, the firm focuses on recruiting, developing, and retaining talent while promoting a supportive and structured employee experience in a virtual setting.
Andrew Leonard is the Managing Partner of Geometric Wealth Advisors, an RIA based out of Washington, D.C. that oversees approximately $750 million in assets under management (AUM) for 200 clients. Andrew's firm stands out for tripling its AUM in four years, achieving this growth by mirroring the management consulting approach of their clientele—focusing first on scaling their team's talent density through careful hiring and training, then determining the number of new clients they can onboard annually based on the team's growth capacity.
Listen in as Andrew shares insights on Geometric's growth strategies, from adopting management consulting firm lessons for hiring and training to the early appointment of a COO for overcoming people-management hurdles. We also discuss how he maintains a vibrant company culture virtually, provides high-touch services to affluent clients, and integrates unique investment opportunities—all while navigating the firm's expansion through the ‘dangerous middle’ from $200 million to $2 billion in AUM.
