U.S. Capital Advisors, formerly known as Legacy One Financial Advisors, is a Houston-based investment management firm. The firm currently holds the No. 1 spot on SmartAsset lists of the top financial advisors in Houston, and is ranked among the top 10 firms in the state of Texas. With billions in assets under management (AUM), this fee-based financial advisor specializes in wealth management, capital markets, financial planning and investment management. The firm also has offices in Dallas, Austin and Georgetown, Texas, as well as New York and Andover, Massachusetts.
U.S. Capital Advisors Background
U.S. Capital Advisors was founded in 2010 by managing partners Patrick Mendenhall and David King. The firm, which was previously a subsidiary of U.S. Capital RIA Investors, Legacy One Financial Holdings and PLH Financial Holdings, was acquired by USCW Holdco, LLC in April 2024.
The large team of advisors at this firm boasts a number of certifications. These include the chartered financial analyst (CFA), Certified Financial Planner™ (CFP®), certified investment management analyst (CIMA) and chartered portfolio manager (CPM) designations.
U.S. Capital Advisors Client Types and Minimum Account Sizes
This firm's minimum account size for new clients is $50,000. Its client base consists mostly of non-high-net-worth and high-net-worth individuals. However, it also maintains advisory relationships with trusts, estates, charitable organizations, retirement plans and businesses.
Services Offered by U.S. Capital Advisors
It should come as no surpise that a firm as large as U.S. Capital Advisors would offer a wide range of advisory services. Here's a breakdown of what the firm can do:
- Investment management
- Asset allocation planning
- Investment performance reporting
- Liquidity management
- Concentrated position strategizing
- Wealth management
- Financial planning
- Cash flow analysis
- Philanthropic planning
- Estate planning
- Wealth transfer planning
- Tax planning
- Investment planning
- Pension consulting
- Investment manager searches
- Educational seminars and workshops
U.S. Capital Advisors Investment Philosophy
U.S. Capital Advisors' investment process relies upon a range of investment strategies that each have different objectives and asset allocations. For instance, a portfolio might use a mix of stocks and bonds, with the goal of promoting diversification and long-term returns. When deciding what kinds of securities to invest your money in, the firm will use your risk tolerance, time horizon, income needs and financial objectives to guide the way.
When it comes to security analysis, U.S. Capital Advisors says it uses quantitative, statistical, fundamental and technical methods. Each of these identify potential investments based on specific markers. Once the research is complete, the firm will combine its findings and choose investments for your portfolio.
Fees Under U.S. Capital Advisors
Advisory fees at U.S. Capital Advisors typically range from 2% to 0.75% of assets under management. The maximum allowable asset-based fee that a client can be charged is 3%.
Fees are charged on a quarterly basis, in advance. Payments can be invoiced directly to the client, but in most cases they will be debited right from their account. Specific fees for advisory services are disclosed in the Client Advisory Agreement. Rates are determined based on the total amount of assets under management, the program and services that a client enrolls in, the complexity and mix of the client's portfolio and other factors.
Financial planning fees are different though, as clients will pay a fixed fee for these services. Your exact fee rate will depend on the amount of time the firm expects an advisor to spend on your financial plan.
What to Watch Out For
U.S. Capital Advisors does not have any disclosures on its legal and regulatory record.
While this firm has a fiduciary duty that requires it to work in each client’s best interest, its fee-based structure presents a few potential conflicts of interest. For instance, some advisors on staff may be licensed to sell insurance in their separate capacities as insurance agents. These transactions can produce additional, third-party compensation, which can incentivize them to recommend certain products and services over others. This is a conflict of interest.
Opening an Account with U.S. Capital Advisors
If you're interested in becoming a client of U.S. Capital Advisors, your best bet is to reach out to the firm over the phone by calling (713) 366-0500.
All information is accurate as of the writing of this article.
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