Mixed in among the familiar names of Arkansas asset managers are some notable newbies, including a mysterious Little Rock venture capital firm managing three-quarters of a billion dollars, most of it from foreign investment pools.
The Stephens financial empire remains firmly atop this week’s lists of the state’s largest broker-dealers and money managers, while Simmons Bank has returned to the top spot among trust operations.
Simmons had dropped to No. 2 behind Evolve Bank & Trust of West Memphis in 2021 and 2022. But, as Arkansas Business has reported, Evolve’s business plan of providing “banking as a service” for fintech companies has hit some bumps in the road, with its trust assets under management taking a huge hit.
As reported to federal regulators in Dec. 31 call reports, Simmons’ trust assets under management remained flat at just over $6 billion, while Evolve’s plummeted by more than 30% — from $8.14 billion at the end of 2022 to $5.58 billion a year later. And that was just the start. As of June 30, Evolve’s trust assets had fallen to $1.94 billion, down more than 75% in just 18 months.
Stephens Inc. and related Stephens Investment Management Group LLC remain Nos. 1 and 2 among the state’s money managers — that is, registered investment advisers. Their $22.24 billion in combined assets under management, as reported in Form ADV filings with the U.S. Securities & Exchange Commission, represents 43% of total AUM reported by 125 Arkansas-based RIAs.
Both Stephens and SIMG reported double-digit increases compared with their 2023 reports, but that’s not unusual on this year’s list. What is unusual is the number of new — and remarkably large — RIAs that have sprung up in the past year or so.
The largest of the newcomers is By Crypto Management LLC of Little Rock, which was incorporated by Chad Erik Fowler in September 2023 and reported almost $750 million in assets under management as of June 26. It has two alternative business names: BlueYard Capital, a venture capital firm claiming investments in 55 companies in the U.S. and Europe, and BlueYard Crypto.
By Crypto, ranked No. 15 among Arkansas money managers, reported just six accounts, all identified as “pooled investment vehicles (other than investment companies and business development companies).” It told the SEC that four of its clients — accounting for $572 million in assets — were “non-United States persons.” (Only 1% of Stephens Inc.’s 22,000 clients and a minuscule $6.24 million in assets were foreign.)
Calls to the phone number that By Crypto Management provided to the SEC were not returned, and no one from the firm was in last week when Arkansas Business visited its address on the 17th floor of the Regions Center office tower at 400 W. Capitol Ave. (Suite 1700 is a coworking space managed by Regus, which advertises office space starting at $229 per month.)
An address in Boston is also a coworking space. A third address is in Munich. A message left at a California phone number was not returned, nor were emails to addresses for Fowler and BlueYard Capital.
The BlueYard website explains the company’s mission:
“BlueYard backs founders at the earliest stages building the interconnected elements that can become the fabric of our future. A future where markets are open and decentralized, where we have solved our largest planetary challenges, where knowledge and data is [sic] liberated and humanity can live long and prosper.”
Fowler, listed as manager and member of the firm, is not listed individually with FINRA, nor are other officers identified in the Form ADV.
Debuting at No. 20 is Gilliland Jeter Wealth Management LLC, launched last year by a couple of veteran Little Rock money managers. Matthew Jeter and Clay Gilliland were top producers with Raymond James. In April, they reported $454.5 million in assets under management.
SymBiosis Capital Partners LLC of Bentonville was incorporated by Chidozie Ugwumba in 2021 and registered in Arkansas in August of this year. A spokesman said it is a biotechnology venture capital firm. It listed only two accounts, both of them pooled investment vehicles. None of the $278.76 million it had under management as of June came from foreign investors.
Three more RIAs that are new to the list reported at least $100 million in assets under management:
► No. 33 New Wave Wealth Advisors of Springdale was incorporated by Dustin and Hannah Stanley in 2019 and registered in Arkansas in October 2022. The Stanleys were formerly with Sowell Management of North Little Rock (No. 3) and Arvest Wealth Management of Rogers (No. 4).
► No. 39 Cornerstone Advisors LLC of Fayetteville was registered in Arkansas in June. It is owned by Cornerstone Financial Network and run by 30-year industry veteran Nik Paunov, formerly of Merrill Lynch and Cabana Asset Managment of Fayetteville (No. 16). Cornerstone Advisors reported $182.56 million under management in August, and Paunov said last week that the total is now $260 million. The typical client is a high-net-worth individual and the average account balance is $2.8 million, he said. “You’re going to hear a lot about us,” he said.
► No. 54 is First Financial Services LLC of Little Rock. Thomas D. Sanders founded the firm in 2001 and operated through other RIAs, most recently Sowell Management, until February of this year.
Six more new money management firms were not big enough — yet — for the list, which was limited to the 55 largest. They are:
► Willow Financial LLC of Rogers was incorporated in June 2023 by Philip A. Kapler, formerly of Thrivent Investment Management Inc. It reported $81.55 million under management as of July 31.
► Rivertree Wealth LLC of Little Rock was incorporated in 2021 by Jacob Duke, formerly of Applied Capital LLC of Little Rock (No. 27). It had $56.5 million under management as of Aug. 29.
► RetirePath Wealth LLC of Little Rock was incorporated in 2022 by veteran adviser Dale Edward Colclasure Jr. It had $30 million under management as of May 2.
► Riverland Wealth Management LLC of Maumelle was incorporated in 2022 by Townsend Phipps, formerly of Trutoro of Conway (No. 42). In July, Riverland reported assets under management of $29.5 million.
► Holy City Prosperity of Fayetteville had $27.5 million under management as of February. Incorporator John Phillip Cingolani spent 10 years with Edward Jones.
► Portico Financial Group of Bentonville was incorporated in Arkansas in 2022 by Michael T. Karbouski, but has operated in Texas and Wisconsin since 2013. It had $21.9 million under management as of February.
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