Private Wealth Management Firms for High Net Worth Families
There are several reasons why high-net-worth individuals often seek investment planning support from private wealth management firms rather than large, publicly traded banks and investment corporations.
If you have over $5 million in liquid investable assets, you may benefit from downloading a free copy of our in-depth guide. Key reasons to consider working with a private firm include specialized expertise, personalized attention, tailored portfolio strategies, reduced conflicts of interest, and a relationship built on trust.
In this article, we’ll explore how private wealth management differs from private banking, outline the services offered by established firms, explain how to evaluate potential advisors, and break down how these professionals are typically compensated. Let’s get started.
Leading Global Wealth Management Firms by AUM
Below is a ranked list of ten prominent global firms known for providing wealth management services, based on reported assets under management (AUM) as of the mid-2020 financial reporting period.
| Rank | Company | Headquarters | Wealth Management AUM US$b | Reporting Date |
| 1. | UBS Global Wealth Management | Switzerland | 2,590 | 06/30/2020 |
| 2. | Edward Jones | US | 1,305 | 06/30/2020 |
| 3. | Credit Suisse | Switzerland | 1,250 | 06/30/2020 |
| 4. | Morgan Stanley Wealth Management | US | 1,236 | 06/30/2020 |
| 5. | Bank of America GWIM | US | 1,220 | 06/30/2020 |
| 6. | J.P. Morgan Private Bank | US | 677.0 | 06/30/2020 |
| 7. | Goldman Sachs Wealth Management | US | 558.0 | 06/30/2020 |
| 8. | Charles Schwab | US | 506.3 | 12/31/2019 |
| 9. | Citi Private Bank | US | 500.0 | 06/30/2020 |
| 10. | BNP Paribas Wealth Management | France | 424.0 | 06/30/2020 |
Table of Contents
What is the Difference Between Private Banking and Wealth Management?
- Expertise
- Services
- Clientele
- Conflict of Interest
- Dedicated Advisor
There are numerous financial institutions that cater to high-net-worth individuals. You may find yourself asking, what is private banking, and how does it differ from wealth management? While they share similarities, there are key differences between the two.
1. Expertise
Both private banking and wealth management services may offer investment management, retirement planning, and financial guidance. However, the core expertise differs. Private banks typically specialize in traditional banking functions—checking, savings, credit services, and lending. While they may offer ancillary wealth-related services, those are not their primary focus.
Wealth management firms, by contrast, specialize in comprehensive financial planning. Advisors at these firms typically have extensive experience in long-term strategies, estate and tax planning, and portfolio management tailored to high-net-worth or ultra-high-net-worth individuals. If your financial needs go beyond banking and involve a coordinated approach across various financial areas, working with a dedicated wealth manager may offer greater value.
If you’re primarily seeking advanced banking services, a private bank may suffice. But if you require customized planning with a broader financial outlook and continuity of service, a wealth management firm is better aligned with those goals.
2. Services
Private banks may offer select financial services such as retirement planning or estate planning, but they don’t always provide a comprehensive suite. As a result, individuals may find themselves visiting multiple institutions to access different types of financial advice. This fragmented approach can increase costs and create inefficiencies in managing overall wealth.
In contrast, many wealth management firms provide a more integrated experience. These firms often offer investment management, tax planning, estate strategies, philanthropic planning, and financial advisory services under one roof. This makes it easier to coordinate strategies that align with your broader financial picture. A centralized approach also allows for better oversight and a more holistic understanding of how each decision affects your long-term financial goals.
3. Clientele
Private banks and wealth management firms often serve different types of clients. Many wealth management firms focus on high-net-worth and ultra-high-net-worth individuals or families—typically those with $5 million to $500 million in liquid assets. These clients often require more complex financial planning, investment strategies, and risk management solutions due to the size and diversity of their assets.
Private banks, by contrast, may cater to a broader clientele. While they may offer wealth advisory services, their minimum asset thresholds are often lower, sometimes in the six-figure range. As a result, the depth of specialization in serving ultra-affluent clients may vary. The approach may feel more generalized, and clients seeking highly tailored solutions may prefer working with a firm that focuses specifically on advanced wealth planning.
4. Conflict of Interest
Private banks typically operate as part of larger financial institutions, which may create potential conflicts of interest. In some cases, advisors may be incentivized to recommend proprietary products or services that benefit the institution. This structure can make it less clear whether a recommendation is being made in the client’s best interest or in the interest of the institution’s bottom line.
In comparison, many independent wealth management firms operate under a fiduciary standard. This means they are legally obligated to act in their clients’ best interests, providing advice that is transparent and aligned with long-term financial goals. Understanding how a firm is compensated and whether it upholds fiduciary duties is an important part of evaluating any advisor relationship.
5. Dedicated Advisor
High-net-worth individuals benefit from working with a dedicated financial advisor who can fully understand their financial circumstances, long-term goals, and unique challenges. A close client-advisor relationship often leads to more personalized recommendations, ongoing strategy adjustments, and better alignment with the client’s evolving financial priorities.
At many large financial institutions or private banks, clients may be assigned a relationship manager or advisor. However, due to the size of the organization and the potential for staff turnover, continuity can sometimes be a challenge. Clients may need to reintroduce their financial goals to new advisors if transitions occur within the firm.
In contrast, many boutique wealth management firms prioritize long-term client relationships by assigning a dedicated advisor who remains involved throughout the entire engagement. This continuity can help build trust and provide clients with a sense of consistency and stability over time, especially when managing complex financial plans that evolve over decades.
6 Services Offered by Top Private Wealth Management Firms
- Financial Planning
- Investment Management
- Risk Management
- Retirement Planning
- Estate Planning
- Tax Planning
In addition to offering specialized expertise and personalized attention, top private wealth management firms provide a wide range of services tailored to high-net-worth individuals. These services are designed to help clients build, preserve, and transfer wealth effectively. Below is a brief overview of key services commonly offered:
1. Financial Planning
Top firms provide comprehensive financial planning to guide clients toward long-term financial goals. A well-structured plan serves as a roadmap for decision-making and aligns investment, estate, tax, and retirement strategies under one cohesive approach. For high-net-worth individuals, this kind of planning helps ensure that financial strategies remain aligned with personal objectives and evolving life circumstances.
2. Investment Management
For high-net-worth individuals, investment and asset management play a central role in achieving financial growth and long-term goals. Managing an investment portfolio effectively involves navigating a wide range of products, selecting appropriate asset allocations, and aligning those decisions with broader financial plans. This complexity makes investment management a critical service provided by top private wealth management firms.
These firms apply strategic planning, in-depth market research, and long-term thinking to construct and maintain portfolios that are tailored to each client’s unique goals and risk tolerance. Their expertise helps ensure that investments are not only diversified, but also positioned to take advantage of emerging opportunities while managing downside risks.
Top firms differentiate themselves by offering ongoing support, regular portfolio reviews, and adaptive strategies that evolve with changing economic conditions and personal circumstances—essential qualities for preserving and growing substantial wealth.
3. Risk Management
While high net worth individuals and families have a lot to gain with their vast amount of wealth and assets, they also have a lot to lose. Any sudden critical illness or even market volatility can leave the most affluent individuals bankrupt. That’s why they need to prepare beforehand, and that’s where the top wealth management firms can help.
4. Retirement Planning
Effective retirement planning goes beyond simply saving for the future. It requires early preparation, clear goal-setting, and strategies that support a comfortable lifestyle throughout retirement. Top wealth management firms assist clients by developing personalized retirement plans that align with their financial situation, long-term goals, and desired standard of living.
These advisors help assess income needs, plan for healthcare costs, manage investment withdrawals, and account for legacy considerations—all with the aim of ensuring lasting financial security during retirement.
5. Estate Planning
Estate planning is a crucial component of comprehensive wealth management, especially for high-net-worth and ultra-high-net-worth individuals. It ensures that assets are distributed according to your wishes while minimizing legal complications and potential tax liabilities for beneficiaries. Top wealth management firms help design tailored estate plans, which may include trusts, wills, charitable giving strategies, and succession planning, all coordinated to align with personal and family goals.
By planning ahead with professional guidance, individuals can ensure a smooth transition of wealth and preserve their financial legacy for future generations.
6. Tax Planning
For high-net-worth individuals, effective tax planning is essential to preserving wealth. With multiple income sources, investments, and potential estate tax exposure, taxes can become a significant burden without a well-structured strategy. Leading wealth management firms work to minimize tax liabilities through techniques such as tax-loss harvesting, income deferral strategies, charitable donations, and efficient asset location.
The goal is not to avoid taxes, but to ensure they are managed in a way that supports long-term financial goals while staying fully compliant with current tax laws.
3 Ways to Choose a Private Wealth Manager
Selecting the right private wealth manager goes beyond simply choosing a professional at a well-known firm. It’s about finding someone who understands your unique financial goals and has the expertise to guide you through every stage of wealth management. Here are three key criteria to consider:
1. Experience and Credentials
Conduct a thorough background check to evaluate the wealth manager’s qualifications. Look into their years of experience, professional designations (such as CFP or CFA), and their track record with clients who have similar financial profiles. The right advisor should have a deep understanding of complex financial scenarios, especially those involving high-net-worth individuals.
2. Fiduciary Responsibility
Choose a wealth manager who acts as a fiduciary—legally and ethically obligated to put your interests first. A fiduciary advisor will provide transparent advice, avoid conflicts of interest, and fully disclose fees, risks, and recommendations so you can make informed financial decisions.
3. Personalized Financial Planning
Avoid one-size-fits-all approaches. The best wealth managers will take the time to understand your personal and financial goals and will build a customized strategy tailored to your needs. A personalized plan ensures your investments, tax planning, estate strategy, and retirement goals are aligned and well-managed.
What Percentage Do Wealth Managers Make?
Wealth managers typically charge a percentage-based fee on the total value of Assets Under Management (AUM). This percentage can vary depending on several factors, including the complexity of services offered, the advisor’s approach (active vs. passive management), and the size of your portfolio.
On average, many wealth managers charge approximately 1% of AUM annually. However, clients with larger portfolios may receive a tiered or reduced rate. For example, an advisor might charge 1% on the first $1 million, 0.75% on the next $2 million, and so on.
It’s important to understand what services are included in the fee. Some managers offer comprehensive wealth planning, investment management, tax strategies, and estate planning under one all-inclusive rate, while others may charge separately for each service.
When evaluating fees, transparency is key. Ensure the advisor clearly explains their compensation model and any potential additional costs involved so you can make an informed decision about their value and alignment with your goals.
5 Tips for Choosing a Wealth Management Firm
Partnering with a wealth management firm can provide the structure, insight, and ongoing support needed to achieve both your short- and long-term financial objectives. At the core of effective wealth management is a personalized financial plan—one that defines your goals and outlines strategies to help you reach them.
A qualified wealth management firm helps you make informed investment decisions, develop an asset allocation strategy tailored to your risk tolerance, and diversify your portfolio appropriately. Beyond investments, they can support you with budgeting, debt reduction, retirement planning, tax optimization, and estate planning.
Since wealth management is a comprehensive process, and each firm offers its own approach, specialties, and fee structure, it’s essential to find one that aligns with your needs and values.
Here are five tips to guide your selection process:
1. Determine Who the Firm’s Ideal Client Is
Every wealth management firm has a target client profile, even if they offer a broad range of financial services. Some firms may specialize in institutional investors, while others focus on high-net-worth individuals, family offices, or specific financial products such as ETFs or private equity. Understanding this focus can help you gauge whether the firm has deep expertise in the areas that matter most to you.
Before committing, ask the firm about the type of clients they typically serve. This conversation will help you determine whether your financial needs and goals align with their strengths and experience.
2. Identify the Services the Firm Offers
Wealth management is a broad field, and not all firms offer the same level of specialization. Before hiring a wealth manager, confirm that they have the background and experience to support your specific needs—whether that’s planning a business exit, managing a complex estate, or setting up a multigenerational trust.
Clarifying the range and depth of services offered will help you ensure the firm can support your evolving financial goals with expert guidance.
3. Study the Firm’s Compensation Schedule
Understanding how a wealth management firm is compensated is essential. Ask specific questions about their fee structure—do they charge a flat fee, a percentage of assets under management, or earn commissions from product sales? Compensation models can influence recommendations, so it’s important to ensure their incentives align with your financial goals. You should feel confident that the cost of their services is justified by the value and outcomes you receive.
4. Identify the Advisor’s Availability
Accessibility is key in a trusted financial relationship. Ask how often your advisor will communicate with you, how performance updates are delivered, and what to expect when you have a question or concern. Will they respond quickly to emails or phone calls? The best advisors are proactive and responsive, providing peace of mind when markets shift or personal circumstances change.
5. Do a Background Check
Before engaging with a firm or advisor, verify their credentials and track record. Advisors authorized to execute trades must be registered with the SEC—review their records at the SEC’s Investment Adviser Public Disclosure (IAPD) website. Firms that employ brokers will also be listed. Additionally, search for complaints or disciplinary actions with the Better Business Bureau. Read the firm’s disclosure statements carefully to understand their investment philosophy and how they manage client assets.
Final Words
There are countless financial institutions and many well-regarded wealth management firms to choose from. But if your goal is to grow your wealth strategically while achieving both short- and long-term financial goals, and minimizing risks and costs along the way, you need to partner with a firm that offers more than just services. You need a team with deep experience, verified credentials, a strong track record, and a commitment to acting solely in your best interest.
Take your next step with confidence:
Find the right fit to secure your future and support your ultra-high-net-worth goals.
