How private equity and emotional intelligence drive RIA growth

"To be successful, you have to expose yourself to different situations — different styles of play, different teammates, different coaching." Those words from Sue Bird, a former professional basketball player who exudes extraordinary leadership both on and off the basketball court, resonate with me. 

As a former Division I collegiate basketball player, I've always been driven by the power of teamwork and the quest to build something great together. As a leader, I try to exemplify emotional intelligence by creating a workplace where empathy, self-awareness and open communication are paramount.

Our RIA, The Mather Group, which currently has over 175 employees in 12 offices nationwide and $14 billion of assets under management or administration, took on outside capital with private equity firm The Vistria Group in spring 2022. The partnership gave us the increased cash flow to upgrade technology, expand into new markets (such as new locations) and invest in M&A — all of which drive revenue growth and profitability.

It also paved the way for new initiatives to help us begin to shift our business model.

One of those initiatives was a management incentive program that aimed to enhance the employee compensation and bonus structure. Our MIP focuses on equity rewards, but we also offer salary increases and cash bonuses based on operating margin and team member performance. The program rewards team members with equity based on achieving specific performance goals. It's designed to align our efforts with the company's long-term success, so team members benefit as the business grows. 

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'Meeting of the minds'

But we know that investing in our people goes beyond creating an attractive reward and recognition system. By stressing the importance of emotional intelligence (also known as emotional quotient or EQ), we invest in the skills and decision-making development of every employee. 

When I joined the firm last winter, and then became CEO that spring, I saw an industry buzzing with M&A opportunities and breakaway teams. I knew our success depended on more than just retaining talent — it required creating an environment where people could thrive and grow. Recognizing the depth of talent and diverse leadership within our firm, I established an advisory council, bringing together client service associates, advisors, marketers, new hires and seasoned veterans. 

This group tackles critical challenges: driving organic and inorganic growth, enhancing our client service model and fostering team development. The council has quickly become a cornerstone of our culture. By bringing together diverse perspectives, it strengthens our decision-making, promotes collaboration and innovation and reinforces an inclusive environment. This initiative has helped us retain top talent, empower our team and position the firm for sustainable growth in an increasingly competitive landscape. 

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I refer to it as a "meeting of the minds," and we gather quarterly to cultivate leadership and guarantee that every viewpoint is heard and considered. We've taken it a step further by dedicating more time and resources to developing leadership at every level of the organization, ensuring they have the tools, support, and training needed to grow as leaders and drive our collective success forward. One of our thought leaders is a wealth advisor, who has been with the firm for 10 years.

Collaborative culture

By cultivating a team-based workplace — rather than a traditionally siloed organization — and prioritizing empathy and open communication, we create an environment that fosters stronger client relationships and seamless collaboration. 

When advisors work together with a focus on understanding clients' unique needs and concerns, it enhances trust and personalized service, leading to higher client retention, stronger referrals and ultimately AUM growth. This collaborative culture also attracts top talent who thrive in a supportive environment, driving further success. 

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Our RIA lives by the motto, "You don't get one advisor, you get The Mather Group." In a financial landscape where individual achievements often overshadow collective success, our goal — and a goal facing the whole industry — is how to shift to a business success model that recognizes that emotionally and morally intelligent teams produce the best results for clients and therefore the business itself.

This approach not only drives opportunities for wealth creation but rewards exceptional client service. Our model could easily be scaled across the industry. We believe that adopting this emotionally intelligent strategy could be a transformative force for the RIA sector.