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Andy Berg is stepping down as CEO of Homrich Berg, after rising the Atlanta-based registered funding advisory agency to $14 billion in property over practically 3 1/2 a long time.
Efficient Jan. 1, Homrich Berg President Thomas Carroll will take over as CEO and Berg will stay within the function 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 Residence Depot co-founder Arthur Clean, a consumer of theirs, persuaded Homrich to go away to assist him construct a household workplace in 2001, the pair had grown the agency to just about $500 million in property underneath administration.
13 years and a number of other offers later, the agency has established itself as a regional integrator, overseeing greater than $14 billion in property for about 3,000 households from workplaces in Georgia, Florida, South Carolina and Tennessee.
“Constructing Homrich Berg into the profitable client-focused, unbiased, fee-only wealth administration agency it’s as we speak has been the spotlight of my profession,” Berg stated in a press release. “Thomas shares our mission, imaginative and prescient and values, and I’m assured he’s the chief who will help the core of what makes Homrich Berg so particular. I sit up for persevering with to serve on the board and interesting with our shoppers and workers 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 nevertheless it 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 tricky begin as a result of I hadn’t even met all of our teammates,” Carroll stated. “However I slowly began taking over extra of the obligations and bringing gifted folks over to the agency … so, by the point this really 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 progress technique whereas sustaining an natural progress fee of round 7%, unbiased of economic markets, successfully doubling property 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 growth, starting with hiring a head of company improvement.
“The longer term will look quite a bit just like the previous,” Carroll stated. “It’ll simply be barely completely different. We’ll proceed to develop organically however will lean a little bit 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 providers, decrease prices and spend money on extra know-how.”
All of Homrich Berg’s roughly 175 workers 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 strategy, however could keep operations domestically.
“We consider we have now a singular place within the business because it pertains to M&A that can be engaging to sure targets,” stated Carroll. “We wish broad fairness possession, and we don’t require centralization of operations capabilities, which lots of corporations do and customarily requires some headcount discount. We additionally don’t require corporations we purchase to begin promoting merchandise.”
The agency offered 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 yr. Carroll doesn’t anticipate needing extra capital within the close to time period, however stated, “I by no means say by no means.”
“They’ve made us higher in lots of other ways,” he stated of New Mountain. “We really feel like we needn’t increase extra fairness capital now but when there’s a possibility for us down the street to do a strategic acquisition that requires extra fairness capital, then we’ll clearly take a look at it at the moment.”
Whereas Homrich Berg doesn’t set out progress objectives when it comes to AUM, Carroll expects to see the agency double property once more over the subsequent three years.
“As I take over the CEO function, I’m beginning to consider sort of a three-year imaginative and prescient of what we wish this agency to be,” he stated. “I believe one other double could be applicable, particularly as we do begin to quicken M&A. Entering into the $25 billion to $30 billion vary could be sort of an aspirational purpose, 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 subsequent succession.
“Sooner or later we’ll establish a successor for me years down the street and fill the president function at the moment,” he stated.
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