Andy Berg is stepping down as CEO of Homrich Berg, after rising the Atlanta-based registered funding advisory agency to $14 billion in belongings over practically 3 1/2 many years.
Efficient Jan. 1, Homrich Berg President Thomas Carroll will take over as CEO and Berg will stay within the position of chairman of the agency’s board of administrators. The strikes are a part of a deliberate, multi-year transition begun when Carroll was employed in 2020.
Berg co-founded Homrich Berg in 1989 together with David Homrich—and a $100,000 mortgage from his father. Each from tax backgrounds, the duo managed lower than $10 million for shoppers within the early years. By the point House Depot co-founder Arthur Clean, a consumer of theirs, persuaded Homrich to depart to assist him construct a household workplace in 2001, the pair had grown the agency to almost $500 million in belongings below administration.
13 years and several other offers later, the agency has established itself as a regional integrator, overseeing greater than $14 billion in belongings for about 3,000 households from places of work in Georgia, Florida, South Carolina and Tennessee.
“Constructing Homrich Berg into the profitable client-focused, unbiased, fee-only wealth administration agency it’s at present has been the spotlight of my profession,” Berg mentioned in an announcement. “Thomas shares our mission, imaginative and prescient and values, and I’m assured he’s the chief who will assist the core of what makes Homrich Berg so particular. I stay up for persevering with to serve on the board and fascinating with our shoppers and staff within the years forward.”
Carroll joined Homrich Berg after greater than 20 years with SunTrust Financial institution, the place he was an advisor and govt vice chairman heading up the wealth administration division, along with serving as CEO of a multi-family workplace subsidiary of the financial institution. Berg, with whom he had a longstanding relationship, had been attempting to recruit Carroll for years but it surely wasn’t till he floated the thought of bringing him in as a part of a succession plan that Carroll joined in January 2020—two months earlier than the worldwide pandemic hit.
“It was sort of a troublesome begin as a result of I hadn’t even met all of our teammates,” Carroll mentioned. “However I slowly began taking up extra of the duties and bringing gifted individuals over to the agency … so, by the point this truly occurs, it’s fairly seamless as a result of I’ve already been dealing with a lot of the day-to-day operations.”
Homrich Berg was managing about $7 billion when Carroll began and he has helped speed up the agency’s inorganic development technique whereas sustaining an natural development price of round 7%, unbiased of monetary markets, successfully doubling belongings in lower than 4 years. He plans to speed up and formalize Homrich Berg’s mergers and acquisitions course of because the agency continues its regional enlargement, starting with hiring a head of company improvement.
“The long run will look so much just like the previous,” Carroll mentioned. “It’ll simply be barely completely different. We’ll proceed to develop organically however will lean just a little extra into the M&A aspect and advisor lift-outs, largely in order that we are able to create some scale, permitting us to ship extra companies, decrease prices and spend money on extra know-how.”
All of Homrich Berg’s roughly 175 staff are W-2 and a few fifth are fairness companions, a proportion the agency is working to extend. Acquired practices are supplied fairness and are anticipated to undertake Homrich Berg branding, funding “philosophy,” know-how stack and consumer method, however could keep operations domestically.
“We consider we have now a novel place within the trade because it pertains to M&A that shall be engaging to sure targets,” mentioned Carroll. “We wish broad fairness possession, and we don’t require centralization of operations features, which quite a lot of companies do and customarily requires some headcount discount. We additionally don’t require companies we purchase to start out promoting merchandise.”
The agency bought a minority stake to growth-oriented non-public fairness agency New Mountain Capital two years in the past and secured $75 million in debt financing final 12 months. Carroll doesn’t anticipate needing further capital within the close to time period, however mentioned, “I by no means say by no means.”
“They’ve made us higher in quite a lot of alternative ways,” he mentioned of New Mountain. “We really feel like we needn’t elevate further fairness capital now but when there’s a possibility for us down the highway to do a strategic acquisition that requires further fairness capital, then we’ll clearly take a look at it at the moment.”
Whereas Homrich Berg doesn’t set out development targets when it comes to AUM, Carroll expects to see the agency double belongings once more over the following three years.
“As I take over the CEO position, I’m beginning to consider sort of a three-year imaginative and prescient of what we would like this agency to be,” he mentioned. “I believe one other double could be applicable, particularly as we do begin to quicken M&A. Stepping into the $25 billion to $30 billion vary could be sort of an aspirational aim, however we’re working via that strategic plan now.”
Carroll will stay within the twin roles of president and CEO till the time comes for him to consider the following succession.
“Sooner or later we’ll determine a successor for me years down the highway and fill the president position at the moment,” he mentioned.