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Kayne Anderson Rudnick Investment Management Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Kayne Anderson Rudnick Investment Management, LLC (KAR) is a fee-only financial advisor firm in Los Angeles. The firm primarily works with high-net-worth individuals, though its client base also includes various types of institutional investors. It provides both financial planning and portfolio management services.

Kayne Anderson Rudnick Investment Management Background

Kayne Anderson Rudnick was established in 1985 by John Anderson, Richard Kayne and Allan Rudnick. Today, the firm is under the complete ownership of multi-manager asset management business, Virtus Investments Partners, Inc.

The firm’s advisory team boasts an impressive number of certifications. Such certifications include chartered financial analyst (CFA), certified financial planner (CFP), certified private wealth advisor (CPWA), chartered retirement planning counselor (CRPC), certified trust and financial advisor (CTFA), certified public accountant (CPA), chartered alternative investment analyst (CAIA) and advisor with a certificate in investment performance measurement (CIPM) on staff.

Kayne Anderson Rudnick Investment Management Client Types and Minimum Account Sizes

Kayne Anderson Rudnick mainly works with individual investors, most of whom have a high net worth, and wrap fee programs. KAR works with many other types of clients, though, including families, trusts, estates, professional and religious organizations, charitable organizations, endowments, corporations, pension plans, profit-sharing plans, insurance companies, registered investment advisors (RIAs), collective investment trusts, investment companies, private pooled funds and banks.

Depending on what type of client you are and which services you want, Kayne Anderson Rudnick has different investment minimums. Most institutional strategies carry a $10 million minimum. International and global strategies have a $25 million minimum. Wealth advisory clients have a minimum of $1 million. Wrap-fee program minimums generally range from $50,000 to $250,000.

Services Offered By Kayne Anderson Rudnick Investment Management 

As its name indicates, investment management services are a major part of what Kayne Anderson Rudnick Investment Management offers. The firm provides an extensive set of financial planning services as well. Here is the firm’s full list of services available:

  • Investment management
    • Investment research
    • Security selection strategies
    • Internal tax and investment volatility management
    • Consistent rebalances
  • Wealth management
    • Financial planning
      • Retirement planning
      • Estate review
      • Tax planning
      • Charitable gift planning
      • Risk mitigation and insurance review
      • Asset, liability and cash flow analysis
    • Investment advisory
      • Tax minimization
      • Multi-strategy approach
      • Customized asset allocations
      • Constant client-advisor communication
    • Consulting
      • Investment policy statement creation
      • Asset allocation and overall portfolio design
      • Investment manager due diligence and selection
      • Portfolio transitioning
      • Portfolio trading cost analysis
    • Executive services for employee stock options

Kayne Anderson Rudnick Investment Management Investment Philosophy

Research is at the core of Kayne Anderson Rudnick’s investment strategy. The firm prefers to maintain control over its investment decisions as opposed to outsourcing the research work to an outside company. KAR’s process includes reviewing a company’s balance sheet, financial statements, regulatory filings, press releases and other industry data to ensure that it has a complete financial picture prior to investing.

As you might expect based on the above information, KAR principally invests in equities when building client portfolios. It divides these possible investments into large-cap, mid-cap and small-cap categories so that its advisors can easily pair them with a client’s risk tolerance and other needs.

Fees Under Kayne Anderson Rudnick Investment Management

Kayne Anderson Rudnick Investment Management has different fee rates for its various client and portfolio types. The firm charges asset-based fees, and its rates decrease the greater the value of the portfolio. Although the firm lists an annual rate, it charges clients on a quarterly basis. Depending on a client’s agreement with his or her advisor, a client can elect to pay these fees either in arrears or in advance. The firm also allows clients to set up direct payment from their accounts, or clients can elect to be billed separately.

KAR has a larger fee schedule than what is shown in the tables below, but we have chosen to include only the rates for the firm’s most commonly used services.

Wealth Advisory Client Fees
Portfolio Value Annual Fee
First $3,000,000 1.00%
Next $2,000,000 0.80%
Next $5,000,000 0.70%
Above $10,000,000 0.60%

 

Fees for Institutional U.S. All and Large-Cap Equity Portfolios
Portfolio Value Annual Fee
First $25,000,000 0.60%
Next $25,000,000 0.55%
Next $50,000,000 0.45%
Above $100,000,000 0.35%

 

Fees for Institutional U.S. Small-Cap Equity Portfolios
Portfolio Value Annual Fee
First $25,000,000 0.90%
Next $25,000,000 0.80%
Above $50,000,000 0.70%

Note that the rates listed above are not necessarily set in stone. KAR states on its Form ADV that rates may be negotiable for certain clients.

What to Watch Out For

Kayne Anderson Rudnick lists two disclosures on its Form ADV. As a result of these disclosures, the firm was forced to pay fines and submit to censure. For more specific information, contact the firm or read its Form ADV. 

Opening an Account With Kayne Anderson Rudnick Investment Management

If you’re interested in becoming a client, the best way to get in touch with Kayne Anderson Rudnick Investment Management is to either call the firm over the phone or send an email.

All information is accurate as of the writing of this article.

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How Long $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We weighed potential expenditures for a prospective retiree with a  $1 million nest egg to assess how many years that fund would cover in retirement in America’s largest cities.

We applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in metro areas across the U.S.

We assumed the $1 million would grow at a net annual return of 2% after inflation. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.