One of the newer brands in US wealth management – albeit part of a long-established firm in US banking history - is Ascent Private Capital Management of US Bank.

One of the newer
brands in US
wealth management – albeit part of a long-established firm in US banking
history - is Ascent Private Capital Management of US Bank. Last October, this
publication met some of the staff at the firm’s San Francisco offices and has tracked
Ascent’s progress in recent months, including its opening of new offices across
the country. Here, Michael Cole, president, answers questions about its development to date, its
future strategy and opinions on the challenges in the present marketplace. We are grateful for the firm for
taking the time in setting out these answers.

The background and
recent developments?

US Bank has been in the wealth management business for more
than 100 years, but about five years ago, US Bank Wealth Management launched a
strategy to provide US Bank private clients with differentiated
service-delivery models depending on their specific needs. This resulted in the
formation of three distinct business lines, each catering specifically to
different segments of the wealth market - affluent, high net worth, and ultra
high net worth. The affluent and high net worth business lines were launched
first.

Then, in July 2010, US Bank Wealth Management hired Michael
Cole from Wells Fargo to build out the ultra high net worth division. In April
2011, a new brand - Ascent Private Capital Management of US Bank - was launched
and the first two Ascent offices in Minneapolis
and Denver
began operations in November 2011. Two additional offices in Seattle
and Cincinnati
were opened in 2012. Another office in San
Francisco will open in 2013.

Ascent was established to provide ultra high net worth
clients with innovative and highly personalized services designed specifically
for their unique and complex needs. The services integrate traditional wealth
management offerings - financial planning, investment management, private
banking, personal trust and estate administration services, information
management and financial administration. [This included] cutting-edge “wealth
impact” planning and communication services that may help families of wealth in
the areas of family dynamics, family governance and risk management, multi-generational wealth transfer with education and preparation of heirs, leadership and communication assessment, strategic planning, education, stewardship and philanthropy.

What would you say is
the core business of Ascent?

Ascent’s core business is to help clients with significant
resources focus on both managing their wealth along with managing its impact.
We believe this approach is the key to preserving wealth over generations.
Using highly differentiated services, Ascent works with clients and their
advisors to address a range of issues that help them achieve their
wealth-transfer goals and establish their legacies for this and future
generations.

Recognizing that “wealth is more than money,” Ascent offers
a comprehensive platform for supporting families to both manage wealth as well
as manage the impact of wealth on the key constituents that matter to them. The
wealth impact planning platform includes wealth dynamics coaching (comprised of
family dynamics, family communication, legacy planning, family governance, responsible
wealth ownership, philanthropic strategies, reputation management, etc), family
meetings and retreats, educational forums and workshops, and tactical wealth
planning. This approach deeply enhances the potential for client success,
long-term stewardship, and wealth impact.

How does Ascent fit
into the wealth management market – what sort of position does it aim to hold
and niche does it fill?

Ascent has taken a highly differentiated approach to the
ultra high net worth market, focusing on “impact investing,” which places an
emphasis on helping families of wealth drive positive change in the world.

This isn’t just
about philanthropy, or giving away money. This is about investing in ways that
are consistent with a family’s long-term values and that have the ability to
accelerate change. At Ascent, we are providing access to the tools that will
help our clients achieve this goal while also acting as responsible stewards
for preserving wealth across the generations. 

Using highly differentiated services, Ascent works closely
with clients to address a range of issues to help them achieve their
wealth-transfer goals and establish their legacies for this and future
generations.

What type of client
does Ascent focus on?

Ascent provides advisory services to individuals and
multi-generational families with significant resources (typically in excess of
$50 million) who may have private businesses and foundations and who aspire to
making an impact on their communities and the world at large.

Do the bulk of Ascent
clients come from US Bank; is there a significant external client inflow and is
this going to grow?

The bulk of Ascent initial clients came from US Bank, and
the inflow of external clients is continuing to grow.

What are the main
requirements of Ascent’s clients? What sort of trends do you see?

Ascent clients require a broad range of services – from
traditional wealth management services - financial planning, investment
management, private banking, personal trust and estate administration services, information management and financial administration - to “wealth impact”
planning and communication services that may help them in the areas of family
dynamics, family governance and risk management, multi-generational wealth
transfer with education and preparation of heirs, leadership and communication
assessment, strategic planning, education, stewardship and philanthropy.

The US
is in the midst of one of the largest wealth transfers in history - estimated to
exceed $40 trillion that will transition from one generation to another by
2050. 

Nearly 65 per cent of this wealth – $27 trillion – will come
from ultra high net worth families, which represent the top seven per cent of
estates by value. (Source: Boston
College Centre on Wealth
and Philanthropy, 2003.)

Among this group, there has traditionally been a 70 per cent
wealth-dissipation rate in wealth transfers to the third generation and beyond.
(Source: Roy Orville Williams and Vic Preisser, Preparing
Heirs: Five Steps to a Successful Transition of Family Wealth and Values, 2003.) 

This dissipation rate has typically been caused by a lack of communication
among family members and inadequate preparation of the next generation, among
other things. Ascent Private Capital Management seeks to differentiate itself
by helping address these issues for ultra high net worth families.

Your firm currently
oversees over $5 billion of client money. How scalable is this business in
terms of its growth?

The business is quite scalable in terms of growth.

Besides the US Bank
relationship, how else do you reach out to new clients in terms of
intermediaries, word of mouth recommendations, networks, and so on?

Through referrals from current clients and centers of
influence (such as lawyers, accountants, etc).

What are the most
difficult issues that your firm typically has to grapple with?

Marketplace awareness; differentiation

Investment markets; economy

Managing client relationships

Technology; reporting

Regulation and compliance

Obtaining scale; efficiencies

Do you get many
clients who have left other banking relationships?

We are continuing to see more and more clients coming to us
from other financial institutions. In many cases they are introduced to us by
existing Ascent clients. Prospects are
becoming aware of our highly-differentiated approach in the area of investment
consulting and family education services. Additionally, clients are pleased
with our lending practices as well as our timely reviews and timely responses
to lending requests. 

How do you promote
your brand? How would you describe your strategy for raising awareness of it?

The Ascent brand is promoted through events hosted for
prospects and centers of influence at Ascent offices; through participation in
meetings and events sponsored by industry trade associations (eg VIP Forum,
Heckerling Institute, etc); through networking in the ultra high net worth
market space; through thought leadership (white papers, media interviews, etc);
through sponsorships; through proactive media outreach; through presentations
given by Ascent leaders at industry conferences, seminars, etc; and through a
limited amount of advertising.

Looking ahead for the
next five years or so, what do you see as the main issues for your firm and this
industry as a whole?

Market place awareness; differentiation

Investment markets; economy

Managing client relationships

Managing growth

Regulation and compliance

Competition

Business development

Obtaining scale; efficiencies

Does your firm deal
with non-US clients or US clients with significant overseas assets and
businesses? Do you have to deal with significant cross-border issues?

No, not at this time.