Five Questions with an OG, Jonathan Bergman: RIAs and WealthTech

MissionOG is fortunate to be supported by a deep network of experienced operators and entrepreneurs. This entry is part of a blog series where we share perspectives from “OGs” – original innovators from specific market segments and/or business disciplines.

 

Jonathan Bergman is the President at TAG Associates, a leading multi-family office and portfolio management services firm.

 

PLEASE DESCRIBE YOUR BACKGROUND.

When I was 18 and a freshman accounting student, I cold-called 20 CPA firms near my childhood home in the NYC suburbs seeking a summer internship. Only one person agreed to meet me, and I became his first employee. This was an accounting and financial planning firm serving high net worth individuals. That summer, I learned that I wasn’t well suited for accounting but loved investments and financial planning. I spent the next two summers at that firm and became a full-time employee when I graduated from the University of Wisconsin School of Business in 1997.

From there I helped launch an affiliated asset management firm. I was performing due diligence on funds, building model portfolios, and taking out the garbage. In a small firm, there’s no job too big or too small, even for the Chief Investment Officer. After building that firm from zero to over $1 billion in Assets Under Management in 15 years, I moved to a multi-family office, TAG Associates, which catered to more significant families. I joined as a Managing Director and after seven years was promoted to President still advising clients, plus adding firmwide responsibilities overseeing business development, client experience, and the private equity investment program.

 

WHAT ARE THE KEY PRIORITIES AND CHALLENGES FOR A MULTI-FAMILY OFFICE AND ITS CLIENTS TODAY?

Multi-family offices are built on trust and personalized service, which means growth must be intentional and measured. We can only accept a select number of new families each year to ensure our team continues to deliver the high-quality, tailored advice our clients expect and deserve. Growing too quickly risks compromising the level of care and attention that defines our relationships.

On the investment front, we’re committed to deeply understanding new products and emerging solutions. We aim to stay at the forefront of innovation and, with client consent, have the flexibility to be early adopters, when appropriate. But staying informed doesn’t mean chasing every new idea. Our priority is thoughtful, selective implementation grounded in rigorous due diligence and aligned with each client’s goals.

 

WHERE DOES THE INDEPENDENT ADVISOR HAVE AN ADVANTAGE IN THE MARKET VERSUS THE LARGE TRADITIONAL LEGACY BROKERAGE FIRM?

Independent advisors offer several key advantages over traditional brokerage firms. First and foremost, independent advisors operate as fiduciaries, legally and ethically bound to act in their clients’ best interests.

Second, independent advisors are not limited to a pre-approved list of firm-sponsored products. They have the freedom to recommend any investment that aligns with a client’s goals and needs, offering greater flexibility and access to a broader range of opportunities.

Finally, independent advisors typically charge fees based on assets under management rather than commissions, aligning their interests with those of their clients.

 

WHERE DO YOU SEE THE BIGGEST OPPORTUNITIES TO ADOPT TECHNOLOGY TO ENHANCE YOUR VALUE PROPOSITION?

Technology will allow new firms to scale quickly and offer tools and systems which were only available in the largest firms just a few years ago. Whether it be monitoring portfolios, flagging a manager’s style drift, automating alternative investment reporting, or alerts about potential liquidity issues, you can create tools and systems to provide world-class investments and reporting, even in a smaller organization.

 

WHAT WILL THE RIA LANDSCAPE LOOK LIKE IN 5-10 YEARS AND HOW WILL THE ROLE OF A FIRM AND THE ADVISORS WITHIN IT CHANGE?

Successful wealth management firms are client-first organizations. The advisors who know their clients and the client’s family dynamics will always come out ahead. They provide solutions which are tailored to their clients specifically. These advisors can see around the corner, understanding obstacles that a less familiar outsider might not see. This type of relationship cannot be replaced by a broker with 100 clients, or for that matter a bot or call-center.

There has been considerable consolidation in the industry over the last 10 years. But we haven’t seen a true market sell-off since 2008. I’m curious how these organizations, some of which were cobbled together but haven’t properly integrated, will handle economic and financial market stress. Will it be a streamlined approach, or more haphazard? What’s the risk to the client, the firm, and its investors? Time will tell.

 

WHICH DEVELOPMENTS IN THE INDUSTRY ARE YOU MOST EXCITED ABOUT?

As I evaluate the industry, I am impressed by the availability of portfolio customization tools (i.e. Separately Managed Accounts (“SMAs”) created with client influence/constraints) and tax-optimization SMAs and funds. I believe this is where the puck is headed.