A focus on helping investment advisors build their own businesses has seen Canadian wealth management firm Blackmont Capital surpass all expectations
Written by Ian Armitage and Produced by Rich Gentile
Blackmont Capital Inc. is today a thriving firm of what the CEO, who has helped transform the business, calls “independent thinkers”, offering a full range of services through its capital markets and investment dealer divisions. It wasn’t always this way however. When Bruce Kagan took over the running of the business he, along with Thomas Kim, the firm’s executive vice president, instilled a client-centered philosophy, which now underlies everything Blackmont does.
As a result, it is now a successful business that has earned clients’ trust by putting their needs first.
Rapid transformation
When Bruce joined Blackmont Capital two and a half years ago, the firm had roughly 200 investment advisors handling $5.5 billion in client assets. Today, that same business has 175 investment advisors who manage $9.5 billion in client assets.
“Roughly 80 individuals with an average business of $17 million left the organization, while 60 individuals joined with an average business in excess of $80 million,” says Mr. Kagan.
Not content, Blackmont continues to raise the standard for excellence. How? Well, according to Mr. Kagan, amongst other things, it is because of its cornerstone values – boutique service, entrepreneurial spirit, continuous improvement and performance drive.
“We respect uniqueness and, as a result, tailor our services to meet our clients’ unique needs,” says Mr. Kagan. “We focus on putting clients first and believe [they] deserve a tailor made approach to investment. Circumstances are rarely the same and, often, they need different services. Blackmont goes beyond the call of duty to ensure that we can fulfil the needs of clients; other firms will do business their way and customers have to fit in their box. Entrepreneurs deserve better than that.”
Blackmont, it follows, is a firm created by entrepreneurs for entrepreneurs and rewards creative thinking. It also continually improves, encouraging employees to pursue excellence.
“Large firms are impersonal and more focused on shareholder equity and management bonuses than on the client and that is why we are here – the client! We are focused on nothing but them and strive to offer them a better service,” says Mr. Kagan.
New benchmark
The company’s fortunes have most certainly transformed and Mr. Kagan told Exec that this is due, in part, to an increased focus on finding talented investment advisors and capital markets professionals – mostly from bank-owned brokerage firms.
The fact that CI Financial Income Fund purchased Blackmont Capital in 2007 - with the acquisition of its former parent company, Rockwater Capital Corp - had something to do with it too. Customers now feel safe in the knowledge that their capital is safe.
“We really are a great fit; the perfect marriage,” says Mr. Kagan. “CI has brought a tremendous amount of stability and credibility to the table, thanks to its size.
“With CI as our parent, we have an attractive position in the industry as we are now supported by the substantial financial resources of one of the country’s largest investment companies.”
While the support of CI has been a major factor in Blackmont’s ongoing growth, Mr. Kagan also credits his “strong management team” for Blackmont’s progression.
“Changes in personnel, as I said before, have been critical to the company’s success, at all levels, but particularly management level,” says Mr. Kagan. “We want people who want to be here because having the right people with the right support allows our advisors to market their business, brand their business and build their business.”
And boy do Blackmont’s people want to be there.
Leadership
Despite being backed by CI, Blackmont remains a small company compared to bank-owned brokerage firms. This is exactly how Mr. Kagan wanted it and he couldn’t be happier: “We are doing things our way and achieving great results.”
Mr. Kagan has now accumulated over 15 years of experience in the investment industry. Prior to joining Blackmont Capital Inc., he was head of the wealth management division at Dundee Securities. He has also worked at CIBC Wood Gundy, where he assumed responsibility for corporate-wide training and development, high net worth operations across the country, and managing the Toronto region. He began his career as an Investment Advisor at Midland Walwyn/Merrill Lynch, where he earned recognition as a Chairman’s Club member and was later promoted to Branch Manager, with responsibility for one of its Toronto branches. Bruce Kagan holds a Bachelor of Commerce (Honours) degree from Queen’s University and carries the CFA designation.
He has led Blackmont Captial through a major transformative period that has solidified the corporation’s place in the market.
Under his stewardship Blackmont has nearly doubled the size of its business - and, remember, all this accomplished with a fraction of the advisors Blackmont had before the charismatic Kagan arrived on the scene.
Working to better Blackmont
Blackmont’s brokers, who are often cited as the secret to the company’s continued growth, are always working on “firm” initiatives for the “betterment and development” of Blackmont Captial, extending and continuing the work of CEO Bruce Kagan and Thomas Kim, the firm’s executive vice president.
“A focus on helping investment advisors build their own businesses has seen us surpass all expectations,” says Mr. Kagan. “I believe our brokers embody our core strategies and it is very important to me that, no matter the team, they understand their importance. Its a simple approach, but I think we prove it works.”
(See the Smith Group, the McNicol Team and the Newton Group to learn more about this “unique” style.)
Bright future
To offer some reflection, a proud, but not yet entirely satisfied Mr. Kagan adds: “We have attracted some of the best investment advisors and, subsequently clients, to our firm. At the beginning it was difficult to change this mindset because you have to win people over, typically on a promise.
“We searched for leaders. Michael Newton, Robert Smith and Barry McNicol are a perfect example. They are revolutionaries and through them we have been able to attract other individuals like them, transforming Blackmont. And that is what it took. It took real leadership.”
The people at Blackmont now embody what the firm is trying to achieve. It is therefore set to enjoy future growth, success and prosperity.