U.S. Capital Advisors, also known as USCA RIA, LLC, is a Houston-based investment management firm. The firm currently holds a spot on SmartAsset's lists of the top financial advisors in Houston and 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, Georgetown and New York.
U.S. Capital Advisors Background
U.S. Capital Advisors was founded in 2010 by managing partners Patrick Mendenhall and David King. The firm is a wholly owned subsidiary of U.S. Capital RIA Investors, Legacy One Financial Holdings and PLH Financial Holdings.
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, government entities, investment companies 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
U.S. Capital Advisors uses both a wrap fee program and a standard fee schedule. For a wrap fee account, all advisory, custodial and transactional fees are combined into a single fee rate. On the other hand, a non-wrap fee schedule accounts only for advisory fees, with custodial and transactional fees being charged to the account separately.
For wrap fee accounts, U.S. Capital Advisors states that the maximum rate a client would pay is 3% annually.
Advisory fees at this firm 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 structure presents a few potential conflicts of interest. For instance, U.S. Capital Advisors may recommend share classes of mutual funds that earn the firm compensation. A potential conflict of interest could arise from this situation, as the advisor may be incentivized to recommend one investment over another.
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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