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 the chartered financial analyst (CFA), certified financial planner (CFP), certified private wealth advisor (CPWA), certified public accountant (CPA), certified investment management analyst (CIMA) designations, among others.
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
- Financial planning
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 clients 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 fines totaling $41,500. 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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