Creative Planning

Last updated

Creative Planning, LLC
Company type Private
Industry Financial services
Founded1983;41 years ago (1983)
Headquarters
Overland Park, Kansas
Area served
 United States
Services
AUM US$245 billion (2023) [1]
OwnerPeter Mallouk
Number of employees
2,100 [1]  (2023)
Website creativeplanning.com

Creative Planning, LLC is an independent wealth management firm and registered investment advisor majority owned by American financial advisor Peter Mallouk. The firm was founded in 1983, and is headquartered in Overland Park, Kansas. [2] The company provides wealth management services for individuals, businesses and institutions, including investment management, financial planning, estate planning, tax planning, trust services, tax preparation and charitable giving services.

Contents

History

Creative Planning was founded in 1983 in Overland Park, Kansas, a suburb of Kansas City, Missouri. Peter Mallouk acquired the company in 2004 after working for the firm for five years as an estate planner. [3] [4] Mallouk removed Creative Planning's dual registration so it could operate solely as an independent wealth management firm and registered investment advisor (RIA). [5] [6] At the time, the firm managed assets estimated at $34 million. [7]

In 2015, Creative Planning was named #1 on the Top 100 Fee-Only Wealth Management Firms by CNBC. [8] That same year Barron’s ranked Creative Planning #1 on their list of the Top RIA Firms. [9]

By 2017, the company had grown its assets under management to $26.2 billion with advisers located in more than 30 states, [7] and clients in all 50 US states. [10]

In 2018, a $200,000 fine by the U.S. Securities and Exchange Commission against the firm was the result of a series of radio advertisements heard in live and pre-recorded broadcasts by a radio show host who was a client of the firm. The host gave testimonials for the firm in violation of the Investment Advisers Act of 1940. In addition to the fine, the firm was censured and agreed to a cease and desist order. [11] [12] Mallouk stated that he was unaware of the content of the ads. He was also fined $50,000 at the same time, for a failure to report investments by family members in the firm. [13]

In 2020, the firm announced it would donate $12 million over 18 months to organizations that support social justice reform, access to education, financial literacy and basic needs. [14]   In the same year, Creative Planning also donated $1 million to Kansas City-based Harvesters – The Community Food Network to provide food to those who are food insecure in northwestern Missouri and northeastern Kansas. [15]

In 2021, the firm began offering key employees the opportunity to acquire equity in the company. [16] As a result, 10% of employees (86 individuals) gained partial ownership in the firm. [17]

Also in 2021, Creative Planning launched Pathway Financial Education, a nonprofit organization that provides free financial education and training to small-business owners and other individuals in under-resourced communities. [18] The Pathway Financial Education Center is located in the historic jazz district of 18th and Vine in Kansas City. [19]

In November 2021, Creative Planning announced that it surpassed $100 billion in assets under management. [20]

Acquisitions

In February 2019, the acquisition of The Johnston Group, a Minneapolis-based RIA with more than $500 million assets under management, was the first for the company. [21] Creative Planning then acquired America’s Best 401k, a firm which manages in $1 billion in assets and specializes in low-fee model 401(k)s. [22] OptiFour, which is based in McLean, Virginia, and manages $400 million in assets, was acquired in November 2019. [21] [23]

Stratford Consulting in Addison, Texas, was acquired January 2020, adding $618 million in assets under management. [24] In February 2020, Creative Planning accepted its first outside capital when it sold a minority stake in the firm to General Atlantic, a private equity firm. [25] Creative Planning then continued its buying spree by acquiring Coe Financial Services, an RIA in Wichita, Kansas, with $126 million in assets, in April 2020, [26] followed by Sunrise Advisors Inc., a Leawood, Kansas-based RIA, in June 2020, adding $700 million in assets. [27] The following month, Creative Planning acquired Starfire Investment Advisors in Southfield, Michigan adding $530 million in assets under management; [28] in August 2020 it acquired Lenox Wealth, a firm with $600 million in assets and based in Cincinnati, [29] and Miller Investment Management, a local Overland Park firm managing more than $150 million in assets; [30] in September 2020 it acquired The Atlanta-based TrueWealth LLC, which manages more than $1.6 billion in assets . [31]

By November 2020, Creative Planning had completed 11 acquisitions for a total of $7.2 billion in assets. [32] In February 2021, the firm acquired the Northbrook, Illinois-based Iron Financial which manages $6 billion in assets. [33] By acquiring the Indianapolis-based Castle Wealth Advisors with $320 million in assets in April 2021, Creative Planning also gained the ability to offer business valuation services. [34] Around the same time, the firm helped start Pathway Financial Education, a nonprofit organization that offers free financial education in Kansas City and online with instructors from Creative Planning. [35] In May 2021, the firm acquired another RIA based in McLean, Virginia, Sullivan Bruyette Speros & Blayney, which manages $5 billion in assets. [33]

In August 2023, Creative Planning agreed to acquire Goldman Sachs Personal Financial Management, which grew out of the investment bank's 2019 United Capital Financial Partners acquisition. [1]

Operations

In February 2017, Creative Planning began plans to move its headquarters from Leawood, Kansas, back to Overland Park. [36] Since the move, the company has its headquarters located on a three-building campus on Interstate 435. [37] [38] As of April 2022, the company has 1250 employees. [39] About 10% of the workforce began earning equity in the company in March 2021 when it began offering partnerships to its employees. [40]

As of December 2021, Creative Planning has $225 billion in assets under management and advertisement. [20]

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References

  1. 1 2 3 Son, Hugh (August 28, 2023). "Goldman Sachs unloads another business acquired under CEO David Solomon". CNBC.
  2. ↑ Vogler, Adam (October 19, 2018). "Creative Planning settles in to its new HQ". Kansas City Business Journal. Retrieved April 27, 2021.
  3. ↑ Kapur, Saranya (April 10, 2013). "Fastest Growing RIA: Creative Planning". Forbes. Retrieved October 25, 2018.
  4. ↑ Garmhausen, Steve (August 24, 2013). "The Indie 100". Barron's. Retrieved October 25, 2018.
  5. ↑ Montgomery, Jeff (January 29, 2018). "Veteran wealth adviser opens new Dubuque office". Dubuque Telegraph Herald . Retrieved October 25, 2018.
  6. ↑ Dumay, Jan (December 2015). "Money Talks". 435 Magazine. Retrieved October 26, 2018.
  7. 1 2 Thomas Jr., Landon (June 21, 2017). "A Kansas Investment Firm Spurring Change on Wall Street". The New York Times. Retrieved October 25, 2018.
  8. ↑ staff, CNBC com (June 3, 2015). "CNBC charts the top 100 firms". www.cnbc.com. Retrieved June 13, 2022.
  9. ↑ Barthel, Matthew. "Independent Advisors: 2017's Top 100". www.barrons.com. Retrieved June 13, 2022.
  10. ↑ Davis, Mark (July 13, 2016). "Financial writer Jonathan Clements joins Leawood-based Creative Planning". The Kansas City Star. Retrieved October 26, 2018.
  11. ↑ Davis, Mark (September 19, 2018). "JoCo investment adviser fined $200K for radio ads with forbidden testimonials". Kansas City Star . Retrieved November 19, 2018.
  12. ↑ "In the Matter of CREATIVE PLANNING, INC. AND PETER A. MALLOUK, Respondents" (PDF). U.S. Securities and Exchange Commission. September 18, 2018. Retrieved November 19, 2018.
  13. ↑ Mallouk, Peter (September 18, 2018). "After settling with the SEC for $250,000 over two compliance issues, Peter Mallouk explains what he quietly and painfully experienced as his RIA grew from $15 billion to $36 billion". RIABiz. Retrieved November 19, 2018.
  14. ↑ "Creative Planning donates $12M to aid social justice reform, end systemic racism". www.bizjournals.com. Retrieved May 17, 2022.
  15. ↑ "Creative Planning Donates $1 Million to Local Food Delivery Charity". Wealth Management. March 17, 2020. Retrieved May 17, 2022.
  16. ↑ "Creative Planning offers company equity to select employees". www.bizjournals.com. Retrieved June 13, 2022.
  17. ↑ "Peter Mallouk's Employees Take Equity in Creative Planning". Wealth Management. March 8, 2021. Retrieved June 13, 2022.
  18. ↑ "Creative Planning Strikes Its First 2021 Deal, Opens Nonprofit". ThinkAdvisor. Retrieved June 13, 2022.
  19. ↑ "Creative Planning launches nonprofit Pathway Financial Education". www.bizjournals.com. Retrieved June 13, 2022.
  20. 1 2 Garmhausen, Steve (November 3, 2021). "Creative Planning Achieves $100 Billion in Assets—and Aims for Much More". Barrons. Archived from the original on November 3, 2021. Retrieved November 27, 2021.
  21. 1 2 Snel, Ross (February 26, 2019). "Creative Planning Makes First Acquisition". Barrons. Archived from the original on February 27, 2019. Retrieved May 2, 2019.
  22. ↑ Snel, Ross (September 24, 2019). "Creative Planning Buys Low-Fee 401(k) Provider". Barrons. Archived from the original on September 25, 2019. Retrieved November 27, 2021.
  23. ↑ Snel, Ross (November 20, 2019). "Creative Planning Continues Down Acquisition Road". Barrons. Archived from the original on November 20, 2019. Retrieved November 25, 2019.
  24. ↑ Dornbrook, James (January 22, 2020). "Mallouk: Creative Planning's latest acquisition speeds path to 'really compete' in Dallas". Kansas City Business Journal. Retrieved September 8, 2020.
  25. ↑ Snel, Ross (February 10, 2020). "Creative Planning Taps Private Equity". Barrons. Archived from the original on June 25, 2020. Retrieved November 27, 2021.
  26. ↑ Dornbrook, James (April 10, 2020). "Creative Planning adds $126M in assets with Wichita acquisition". Kansas City Business Journal. Retrieved September 8, 2020.
  27. ↑ Dornbrook, James (June 23, 2020). "Creative Planning acquires Leawood firm, adds $700M in assets". Kansas City Business Journal. Retrieved September 8, 2020.
  28. ↑ Dornbrook, James (July 1, 2020). "Creative Planning's 8th acquisition in 18 months adds $530M in assets" . Retrieved September 9, 2020.
  29. ↑ Dornbrook, James (August 12, 2020). "Creative Planning acquires Lenox Wealth, adds $600M in assets". Kansas City Business Journal. Retrieved September 8, 2020.
  30. ↑ Dornbrook, James (August 18, 2020). "Creative Planning buys Miller Investment Management, adds $150M in assets". Kansas City Business Journal. Retrieved September 8, 2020.
  31. ↑ James, Dornbrook (September 1, 2020). "Creative Planning acquires Atlanta's TrueWealth, adding $1.6B in assets". Kansas City Business Journal. Retrieved September 8, 2020.
  32. ↑ Dornbrook, James (November 6, 2020). "Creative Planning's Mallouk is a Kansas City guy". Kansas City Business Journal. Archived from the original on November 6, 2020. Retrieved November 27, 2021.
  33. 1 2 Dornbrook, James (May 4, 2021). "Creative Planning's latest acquisition adds $5B in assets". Kansas City Business Journal. Archived from the original on May 5, 2021. Retrieved November 27, 2021.
  34. ↑ Dornbrook, James (April 27, 2021). "Creative Planning acquires Castle Wealth's $320M in assets and business valuation service". Kansas City Business Journal. Retrieved November 27, 2021.
  35. ↑ Dornbrook, James (April 13, 2021). "Creative Planning launches nonprofit Pathway Financial Education". Kansas City Business Journal. Archived from the original on April 13, 2021. Retrieved November 27, 2021.
  36. ↑ Vockrodt, Steve (January 24, 2017). "Overland Park Council gives early thumbs up to prospective Creative Planning project". The Kansas City Star. Retrieved October 26, 2018.
  37. ↑ Davis, Miranda (November 12, 2019). "Creative Planning will add third building to Overland Park campus". Kansas City Business Journal. Retrieved November 27, 2021.
  38. ↑ Friestad, Thomas (September 8, 2020). "Creative Planning breaks ground on third office building on Overland Park campus". Kansas City Business Journal. Retrieved November 27, 2021.
  39. ↑ "Three Creative Planning Wealth Managers Named to Barron's Top 100 Women Financial Advisors List". Creative Planning. June 23, 2021. Archived from the original on June 24, 2021. Retrieved November 27, 2021.
  40. ↑ Dornbrook, James (March 9, 2021). "Creative Planning offers company equity to select employees". Kansas City Business Journal. Archived from the original on March 9, 2021. Retrieved November 27, 2021.
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