Rockefeller: Last Call for the Last Boutique?

The story of Rockefeller Global Family Office has resonated across the industry since Greg Fleming took over as CEO in 2018. In six years, it has attracted around 200 of the industry’s most elite teams from most every major bank. As one of the very first recruiters the firm hired, we recognized the opportunity early for that niche advisory team who would benefit.

Its momentum has accelerated since First Republic’s collapse cemented Rockefeller as the last boutique. For advisors seeking a small firm feel with high touch Wall Street resources, family office capabilities and prestige branding, Rockefeller is the one of the last remaining options. There are several key elements to explain why they’re attracting top teams.

First, Rockefeller’s distinguishing factor is its history. The firm grew out of the private family office established in 1882 for Standard Oil founder John D. Rockefeller. Advisors have direct access to resources such as bill pay, tax advice and three trust companies, and the firm also operates an investment bank that can serve business-owner clients. Remember, Greg Flemming is an investment banker at heart who orchestrated the Bank of America-Merrill Lynch merger. He has assembled an all-star cast of bankers including tech, manufacturing, sports banking among many other specialists.

Unlike “virtual” family offices that market themselves as such because they have a few former trust and estate lawyers on staff, Rockefeller truly is a family office.

Second, Rockefeller’s leadership matches the caliber of the advisors they’re attracting. CEO Greg Fleming built the firm around highly successful managers such as Brett Thelander, Jason Rich and Brian Riley from Merrill Private Wealth and Michael Outlaw of Morgan Stanley Private Wealth among many other all-star seasoned managers. The depth of their experience and leadership is invaluable for advisors and the growth of their businesses.

A third valuable point is Rockefeller’s size. Executives have said they are aiming for around 250 to 300 teams. That fosters a boutique RIA culture and ensures that everyone can participate meaningfully in exclusive offerings and alternative investment opportunities. Of course, Rockefeller has access to all of the mainstream hedge funds and private equity offerings from Apollo, Carlyle Group and Blackstone, but what makes them unique is their access to under the radar deals with $50 million offerings that the Rockefeller family and their other large families have access to, including pre-IPO companies and niche real-estate properties that are too small to be offered at major houses.

Of course, Rockefeller’s hiring offers for top teams are also very compelling. Their upfronts are highly competitive with much larger firms, and back-end bonuses are based on revenue, not assets. The firm has made those targets attainable with timelines that give advisors lots of time to grow their practices and more easily hit these hurdles.

However, Rockefeller’s size constraint should be top-of-mind for interested advisors. With the firm already at around 200 teams, being hired there could become much more difficult once it hits the 250 mark and materially slows recruiting. Advisors should consider being educated further since the window for this exclusive platform may be narrowing, the economic packages have likely peaked, and any large potential exit takes time and careful planning.