Headquartered in Los Angeles, Kayne Anderson Rudnick Investment Management provides investment management and wealth management services to individuals, high net worth individuals and institutions. The firm also manages and advises mutual funds, including some funds under the branding of its owner, Virtus Investment Partners. The firm employees more than 80 people spread over 10 offices, including 17 in investment advisory positions.
All information included in this profile is accurate as of March 5, 2020. For more information, please consult Kayne Anderson Rudnick Investment Managementâ€™s website.
|Assets under management: $22.8 billion|
|Minimum investment: $1 million for individuals, $50,000 for wrap accounts|
|Fee structure: A percentage of AUM from 0.6% to 1.0%, depending on the account balance|
|Headquarters:||1800 Avenue of the Stars, 2nd Floor
Los Angeles, California 90067
Kayne Anderson Rudnick opened its doors in 1984 to manage money for its founders, including John Anderson, a self-made billionaire. Headquartered in Los Angeles, today Kayne Anderson Rudnick has 10 offices nationwide; it is also located in the southern Californian cities of Newport Beach and Westlake Village, Boston, Denver, Salt Lake City, San Francisco, Seattle, Providence, R.I. and Scottsdale, Ariz. The firm employs 88 people, including 17 that focus on investment advisory or research, and it has grown its assets under management (AUM) to more than $22 billion.
Since 2005, the firm has been owned by Virtus Investment Partners, Inc., a publicly traded asset management business.
Kayne Anderson Rudnick serves a variety of clients, including individuals, high net worth individuals and families, charities, foundations, endowments and other institutions. The majority of the firmâ€™s clients in absolute terms are high net worth individuals, but it also serves a relatively large group of individuals. The vast majority of its total assets under management (AUM) is managed for investment companies and wrap programs.
For individuals to open an account directly with the firm, they would need to invest at least $1 million. The firm notes that the minimum annual fee is $10,000, and if clients fall below this annual minimum must pay $2,500 every quarter.
Kayne Anderson Rudnick serves as advisor or sub-advisor for wrap accounts sponsored by certain financial institutions. The minimum investment for this type of account usually ranges from $50,000 to $250,000.
Kayne Anderson Rudnick provides investment management services, as well as advice on other financial topics, such as retirement. Advisors usually are given discretion to make decisions about what and when to trade, without getting client approval first, but about 20% of its assets under management are handled through non-discretionary relationships.
In particular, the firm specializes in working with clients who have received significant equity grants as part of their compensation, as well as helping associated non-profits with their investment strategy and research. The team may consult outside business partners in certain situations, such as for customized estate planning, tax planning and insurance.
Kayne Anderson Rudnick also offers other services to clients indirectly. You may invest in a mutual fund advised or managed by the firm, including roughly 20 funds affiliated with its owner Virtus Investment Partners. Or you may select one of Kayne Anderson Rudnickâ€™s model strategies in your wrap account. Under this type of wrap program, offered by firms such as Charles Schwab, you receive advisory, custodial and brokerage services, including trading costs, bundled under one fee.
Services offered by Kayne Anderson Rudnick include:
For each private wealth client, Kayne Anderson Rudnick creates a customized portfolio that takes into account the clientâ€™s long-term goals, as well as their teamâ€™s future market expectations. Client accounts are invested in a broad mix of individually managed securities, affiliated and non-affiliated mutual funds, exchange-traded funds (ETFs), limited partnerships and structured notes.
The firm offers 22 investment strategies that focus on traditional equity securities, including U.S. and foreign large-, mid- and small-cap equities. The team also invests in some fixed-income securities that focus on intermediate-term bonds. Some of your money may be invested with other affiliated and unaffiliated managers of its choice.
When developing the firmâ€™s proprietary strategies, the team relies primarily on their own research, and has a long list of specific characteristics it looks for in a company.
How much youâ€™ll pay to work with Kayne Anderson Rudnick depends on the amount youâ€™re investing with the firm, since it offers a tiered fee schedule. Private wealth clients will pay a percentage of their AUM, ranging from 1.00% for the first $3 million invested, then dropping to a minimum of 0.60% on amounts larger than $10 million. Clients with separately managed accounts can expect to pay an additional 0.30% each year.
Keep in mind on top of fees paid to Kayne Anderson Rudnick to manage your portfolio, you still could owe brokerage commissions, transaction fees and other related costs and expenses. Clients can choose between being billed directly for fees or to have fees directly debited from their account. Fees are paid quarterly.
|Wealth Advisory Fee Schedule|
|Assets under Advisement||Annual Fee|
|First $3 million||1.00%|
|Next $2 million||0.80%|
|Next $5 million||0.70%|
Since Kayne Anderson Rudnick is an investment advisor registered with the SEC, itâ€™s required to disclose all material facts regarding legal or disciplinary events that could impact your evaluation of the firm or the integrity of its management team.
Over the last 10 years, it has disclosed only one event: In 2018, financial authorities in Norway charged the firm $18,500 because on two occasions the firm was late to disclose that it owned a large amount of shares of a Norwegian company. Otherwise, the firm has a clean record.
To reach out to the company, click on the Wealth Management or Investment Management tab at the firmâ€™s website, and youâ€™ll find the contact information for each office.
If you establish a relationship directly with Kayne Anderson Rudnick, as opposed to through a mutual fund it manages, you can meet with the firm at least once a year, and sometimes quarterly if requested. Expect to receive at least quarterly reports laying out your holdings and performance, and relevant tax details.
Kayne Anderson Rudnick is well regarded for its equity strategies. It conducts its own original research on companies itâ€™s considering for investment, including talking to company management, customers and competitors, and has identified a standardized list of characteristics it seeks out when hunting for prospects.
As for its client list, the firm aims to assist wealthy individuals, families and institutions manage their portfolios and plan for their financial futures. Investors who fall short of the typical $1 million minimum investment may not make the cut to become a client. You may want to look elsewhere, too, if youâ€™re primarily looking for a financial plan, and not portfolio management. Before choosing a financial advisor, itâ€™s your job to shop around to make sure you find someone well suited to your needs.