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- What is a $1 Billion Wealth Management Firm?
What is a $1 Billion Wealth Management Firm?
Can you imagine a wealth management firm reaching $1 billion dollars in revenue or market value? Outside of the largest banks and brokerage firms, it is extremely rare for a financial service provider to scale that far.
Instead, when managers and planners talk about being a billion dollar firm, they are usually referring to assets under management.
Assets under management (AUM) is the most common way to evaluate the size and scale of a wealth management business.
Like all business goals, these numbers are somewhat arbitrary. But, hitting such heights comes with some enormous financial rewards and the capacity to positively impact the lives of thousands of people.
Advisors that accrue $1 billion in assets under management will employ dozens of team members, serve hundreds, or thousands, of clients, and can make a living that allows them to contribute to numerous charitable organizations.