Marquette Financial Cos. has entered the crowded wealth management marketplace with the launching Tuesday of its subsidiary, Marquette Asset Management Inc. in Minneapolis.
John Pohlad, the chief executive officer and a managing director of the unit, said, "After the sale of the banks some years ago, there was a plan to build a financial services part of the business, and asset management was the glaring omission."
Regarding the crowded wealth management business, he said, "Clearly there are challenges, but we have a terrific formula. The challenge in the end is getting the assets in the door. You need to get clients. After we demonstrate the service model, we don't see that being a problem."
Mr. Pohlad's uncle is Carl Pohlad, the head of the family that owns Marquette Financial and sold Marquette Banks, its $5.6 billion-asset network of mostly Midwestern community banks, to Wells Fargo & Co. in 2002. Marquette Asset Management said it opens its doors with substantial assets under management, including a commitment from the Pohlad family.
Mr. Pohlad said he actually does not see a lot of wealth management competition in the Minneapolis market and does not view his company's relatively late entry into private wealth management as an obstacle. "Here in Minneapolis, we're the first comprehensive wealth management firm with local players. There is no one like us in Minneapolis," he said.
The asset management subsidiary will offer private asset management and trust services to individuals, families, and institutions with more than $2 million.
The Minneapolis company will also offer two internally managed equity portfolios, and Marquette will work with external managers for additional asset classes. "We have a relationship with a consulting firm that helps filter the best-in-breed managers," said Mr. Pohlad. He declined to name the consultant but said it will sift a list of 3,600 managers.
The company will offer core equity and core fixed-income securities and a selection of externally managed portfolios. Two specialized, large-capitalization equity portfolios will be managed in-house. Core fixed-income investments are to be managed by NorthShore Advisors LLC.
Marquette Asset Management may expand its operations outside Minneapolis, said Mr. Pohlad, but he declined to say which cities are possible expansion sites.
"In the Minneapolis market, during the winter months, you have a geographical focus of clients in other parts of the country. If a number of clients are in a certain area, we must accommodate that," he said. His company does not have an immediate schedule for expansion, he said, but is focusing on the Midwest.
The asset management unit has an aggressive growth strategy, Mr. Pohlad said, and expects to be a top player by its fifth year of operation. He declined, however, to discuss specific asset goals.
Before joining his family's new venture, Mr. Pohlad headed the Minneapolis office of Bel Air Investment Advisors LLC, a wealth management firm based in Los Angeles. He was responsible for expanding the Minneapolis operation from its start-up in 2001 to $350 million of assets under management. Mr. Pohlad is joined as one of the unit's four managing directors by another alumnus of Bel Air's Minneapolis office, John Fabie.
As part of an ownership transition, Mr. Pohlad said, Bel Air has closed its Minneapolis office to concentrate on Los Angeles. Marquette will, however, make available the investment capabilities of Bel Air Investment Advisors.
Marquette also will offer personal trust services through Stanton Trust Co., a wholly owned entity of the Pohlad family.
