Fire Capital's award-winning formula: family, trust, and no AUM targets

00:00 It's not just about awards. It's not just about assets. It's so much about family. 

00:05 >> Without the trust that our clients place in us, we wouldn't be able to do what we do. 

00:14 >> Welcome back to Investment News TV. Today we're spotlighting one of the winners of this year's investment news awards, Fire Capital Management. A big welcome to Michael Firestone, managing partner and chief investment officer at Fire Capital Management, and Alisa Heath, senior partner, COO, and director of social impact. Winners of the RAIA team of the year under 10 advisers at the investment news awards based in San Francisco. Fire Capital Management was founded in 2018 and describes itself as a boutique investment company built to serve ultra-igh netw worth families across generations and foundations pursuing enduring missions. It's great to have you here today, Alisa and Michael, and congratulations on the award. 

00:59 >> Thank you so much. 

01:00 >> Thank you so much. 

01:01 >> It's great to be here with you, too. 

01:03 >> Great. Great. So, let's let's get into our questions then. Fire Capital Management was founded on the idea that a boutique firm could offer families something distinctive. 

01:12 Direct access to experienced professionals, deep understanding of their circumstances, and an institutional approach to managing multigenerational wealth. How has that ethos translated into success for the company? 

01:25 >> Well, I think that success really goes back to how we got started. You know, Michael and I actually met in business school together and he got started talking about building an advisory firm that was truly built around clients. And so that's what we did. We got started with just a few clients and really built our firm around them. And so I think that client first mentality has really been embedded in our culture. 

01:53 I mean from day one we haven't really had any you know traditional growth metrics or an AUM target. It's really been about you know how are we thinking about uh helping our clients achieve their goals and help them to make an impact. And so for us I think that's really what drives us every day and what um has driven us from our kind of twoerson we work where we got started uh to now. And although a lot has changed, um I think that ethos um really has. And so we continue to ask, you know, what do our clients um really care about and how can we support them across their investments impact their values and really build around that. 

02:34 >> Yeah. Yeah. And I'll just add, you know, like I I think everything Alisa said is spot on. Uh when I really think about the ethos of how we got started and why we've been successful, it Lisa said at our clients at the end of the day, but you know, our approach and our team um approach to supporting those clients. 

02:54 You know, we talk about trust. You know, clients, no matter who you are, how much wealth you have, you've got to be able to trust the people that are supporting you. And that's easy to say. It's harder harder to do. uh it's something that needs to be earned every single day and you know things like having direct access to the people who are making those uh decisions on behalf of your family and your family's legacy those are important things um really when I think about extending that beyond trust and I think about reliability you know we need to be there for our clients no matter what the situation is it is so much more than let's say being the family portfolio manager and making trades and giving some wealth advice. 

03:39 Um, there's so many different components to working with multigenerational families and each one is different and unique. So, we take that approach. Um, we tailor our advice to each of our client situations, each of our client relationships, and we put the time and effort to build those deep relationships with each and every one of our clients and their families. 

03:59 >> Great stuff. Thank you. Thank you for that. So, your firm has experienced incredible organic growth without outside funding or M&A. In addition to what you just mentioned, is there anything else that Fire Capital does well or differently that's helped you stand out? 

04:15 >> Yeah, you know, like first and foremost, I'm just so incredibly grateful. Um, I think back to the early days when we started with just really just two clients to get going. Um, and then fast forward to today and, you know, clients across 10 states and four countries. Uh it's just been really such an incredible ride. And when I really boil it down, Fire Capital exists because of the trust our clients place in us and really the team that works so hard to earn that trust every single day. So really it starts with those two things.  

04:47 But something I'll also add is just to mention, you know, our investment capabilities. That is a piece that's incredibly important to us. Um I love investing. Our team loves investing. that that's a core reason why clients hire us in the first place. And you know, we have different solutions for different types of situations. 

05:06 Everything from ETF models all the way to pure allocations to asset managers through SMAs. But in between, uh, we also love researching individual companies. So, we're able to handle individual stocks. Uh, and that's something that I feel is really important when working with multigenerational wealth because oftent times when someone inherits wealth, it's usually a basket of securities. 

05:32 Usually with potentially high capital gain tax liabilities if it were to be sold. So, our ability to look at those companies to manage those those equities and to do it in a thoughtful way is something that's been quite advantageous for us. Um the other piece is our multif family office uh service offering. I do think it's a bit unique in the space. We identified a while ago that clients often may like to have money spread out across multiple managers or advisers and that's perfectly fine. The issue is is that when you're doing that and everyone's running a similar type of strategy, you get a lot of overlap. 

06:11 Those advisers are or managers aren't talking to each other. So, it's really left up to the client to sort that through. Um, so what we're able to do is insert ourselves as we'll call it the most trusted advisor, help with oversight, help with strategy, and even in some cases hiring other adviserss or managers on behalf of the client to make sure that it's still focused on achieving those clients goals. Uh, and also from a riskmanagement perspective, there's other pieces to that as well. when I think about not just reporting and oversight um family governance we do a lot with let's call them family meetings but not just come to our office and meet uh we'll set up almost like a mini family conference for the family to get together to focus and to talk about the investments to meet with the marriagers to look at estate planning and tax and other family interests that exists you know I would say other pieces of that include philanthropy um and really anything else that the family ultimately ly needs or wants. 

07:12 >> And I would just build on on what Michael said. The other area that we're excited that to grow is our OCIO for foundation service. So our outsource chief investment officer service. And you know foundations also have their own investment objectives um a board that they're accountable to and a mission. 

07:30 And so increasingly foundations are interested in how their investments are also aligning with their mission alongside the grant making rather than viewing them as two different things. 

07:40 And so we're uniquely positioned to serve that I think with our institutional investment capabilities that Michael mentioned and our ability to have that highly personalized approach that we've developed around our families that we work with.  

07:55 And so, by supporting those foundations with board education, uh, with mission alignment, um, and, uh, manager oversight and and and the like, we're able to help really think through that full spectrum of capital across their investments and their grant making around their mission. 

08:14 >> Okay, great stuff. So, onto our next question then. How does fire capital management help families translate philanthropic intent into action? Can you tell us how this translates into charitable strategy, foundation 

08:28 governance, and impact focused investor? And how is that commitment reflected in Fire Capital's own operations as a certified BC Corp and Pledge 1% member? 

08:38 >> Yeah, we really start with the why behind our clients giving. And you know, we might have clients come to us who have a deep passion for education or women's health or the environment um or want to leave a legacy, but they don't really know how to put that into practice. And so our role is really to help u transition that intent into strategy. So that might look like for some clients, you know, really clarifying their values as a family um to identifying charitable vehicles like a donor advised fund or it might mean identifying local nonprofits that they could grant to. And if the client has a private foundation, um we support with their grant making strategy, liazing with those grantees and um even helping to professionalize the foundation itself. 

09:26 But then we take the conversation one step further and and think about how um does their investment portfolio also play a role in that impact. And so that might mean for some clients aligning their portfolio around around those values or it might mean dedicating a percentage of their portfolio towards investments that are driving intentional positive environmental and social returns alongside financial returns.  

09:56 And so I think that's what I really enjoy about this work is understanding uh how impact really means something different to each family and it's really personal. So what one might what might be important to one family might be different to another. 

10:10 And so our role is really to help better understand that and what matters to them and then help really think through their whole uh spectrum of capital from traditional investments to impact investments to their uh philanthropy. 

10:25 And so that was really what was important to us as a firm when we got started was also to see how we could make an impact as a firm ourselves. And so early on we were certified as a BC corporation and a pledge 1% member. So, we've committed as a firm to give back to our community as well. And something we're proud of is our own company impact fund where a percentage of our revenue goes towards uh local nonprofits that our team nominates each year to grant to. 

10:53 tSo, we're not only having these conversations around impact with our clients, but also uh taking action and getting involved as well ourselves. Um, I think the philanthropic and impact work that we do at Fire Capital is really a good example of the I guess you could say an extension of really what we're doing in terms of tailoring advice for each client, meeting them where they're at and customizing solutions based off their needs because as Alisa just said, impact is just so personal to the individual and to each and every client. One thing I'll also add is that, you know, when starting Fire Capital, you know, one route was to build a traditional financial firm.  

11:35 Another route was to build something that like I and my three kids could be proud of in terms of them being proud of their dad someday for something that he helped build, that he helped leave behind to society. and really the impact that you know he made the firm made uh not just with the people and the clients that they're supporting but also everything around them as well.  

12:00 So that was something that was always important is to think of it not just from a money perspective in terms of being successful. It's certainly more important to us to be a be able to be impactful to those that we're supporting and the local communities. 

12:16 >> Thank you. know how is the fire capital management team building for the next generation of the families it serves? 

12:24 >> Yeah, it's a good question because like you hear so much about like the great wealth transfer and you you talking about you know wealth transferring from you know let's say the uh baby boomer generation to the millennials to the Gen Z and yeah that's true that's all happening.  

12:41 There’s also been a lot written about how women are kind of the stopgate in between there. You know, women tend to live longer than men. Uh women are becoming a much more powerful force when you think about assets impact everything around family wealth. And that's actually something that we've seen ourselves, you know, actually. And and this wasn't necessarily by design, but I'd say probably six or seven of our top clients are women dominated. The women are the decision makers. they're the ones really that are most active in the meetings and uh you know that's something that I think as we think about our team and as we're building it that's something that we need to account for in addition you hear a lot about nextgen the emphasis that I'd like to place on the importance of that next generation is quite high and we've seen it ourselves just through experience um you know there's been several clients quite significant clients important clients to us. 

13:42 It really started with the NextGen. It wasn't the other way around where you take on a client and then you're working to bring the NextGen in into the family meeting. It actually started with them. 

13:53 Or maybe that NextGen son or daughter was in the initial meeting when you first meet the prospective client. Or maybe they're the ones that are telling their parents like, "Hey, like I really trust them." And you know, I think for us that that is a big piece like we're we're we're a young team and when you think about multi serving multigenerational wealth and being there for multiple generations, I think just our age is able to do that.  

14:20 But in addition, I think it's the processes and the approach that we're putting in to building the firm where we're not just building team a team around ourselves. Again, we're empowering our team and training our team and creating the processes of how we support our clients to endure not just this generation but many generations beyond this 

14:42 >> Final question today. So, which brings it all together really. What does the investment news award raa team of the year mean to you? 

14:51 >> First of all, I can't be prouder of our team. Um, this award really is a team award. And so what was particularly meaningful was being able to win it as a team and even celebrate together as the team. At least most of us were able to be there in New York. And so from, you know, being there from the the start really from, like I said, our two person we work to looking around the room at the awards event and just being recognized for the work that we do um was really exciting and I am so grateful for the colleagues that we do have.  

15:25 Our incredible team, you know, of course we have Michael, William, Kelsey, Venus, and Ryan. Um, and well, they couldn't all be here in this interview. You know, we want to make sure that they're um, highlighted because without them, we wouldn't be able to do what we do. And um, of course, you know, without the trust that our clients place in us, we wouldn't be able to do what we do either. But I think awards like this, it's really just an opportunity to step back and reflect on, you know, how far we've come.  

15:56 You don't really get a chance to do that very often when you're just heads down in the work. And so I think that for me was a just a a nice moment to appreciate what we've built and excited for what's ahead. 

16:10 >> Yeah. 

16:10 >> And and for me it was it was such a surreal moment. You know, we've worked so hard over the past 7 and a half eight years. And you know, you think when we first got started, the pandemic hit right afterwards. Really didn't know what was going to happen. again the trust our clients have put in us to do what we do and really to do it from the beginning where you know we've come so far what we're actually able to do for them is just so so meaningful and for myself unfortunately I wasn't able to be at the award ceremony my son uh my third child was being born uh or was born I should say maybe about a week before and uh you know candidly I wasn't sure if we were going to win you know like like we had never really gotten any outside recognition before we knew we were doing, putting in the work, and we we knew what we were uh delivering to clients, but the outside recognition was something that I didn't think I cared that much about until it actually happened, if I'm being honest. Um, and the special moment was really when the team won, they called on FaceTime.  

17:13 And just to see like the joy and happiness and excitement that the team had that we won was was amazing. But even better, I was holding my newborn son uh as they called. And it was for me it was just like another reminder and really put into perspective what we do and why we do it. Right?  

17:32 It's not just about awards. It's not just about assets. It's not about quote unquote the traditional metrics of success. It's so much about family. It's about that next generation. 

17:42 In a lot of cases, it's about, you know, some people that may not have even been born yet. So, you know, we're stewarding that wealth for those clients, for those families. And I I think it was just a full circle moment where it it was just really special. 

17:56 >> That is fantastic. Thank you. Um I just what can I say but you know congratulations once again on this award Michael and Lisa and also I've got to say congratulations on your new arrival Michael. That is amazing. 

18:12 >> Thank you so much for for telling us that and you know and thank him for sharing your all your stories with us today. We look forward to hearing more about Fire Capital Management's journey over the coming years. So, thank you both again. 

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