The firm’s ownership structure is attractive. A small group of employees and closely related parties took Brown Advisory out of Alex. Brown in 1998; today, almost all employees (more than 800) have ownership stakes and collectively control about 70% of the firm, with the rest in the hands of retirees, family members, and the board. No individual controls more than 5% of the company, including integral leader Mike Hankin, the firm’s president and CEO since going private.
Brown Advisory is growing quickly. Its business is split between private-wealth advising and asset management. On the investment side, the firm’s heritage is in growth equities, but it began developing its credibility in environmental, social, and governance investing after acquiring Boston-based Winslow Management in 2009. The firm has since fleshed out its ESG research team and launched sustainability-driven strategies in fixed income, small-cap equities, and international stocks. It plans further offerings along those lines. The firm has also hired aggressively to build out its centralized equity and fixed-income research teams to keep up with demand.
So far, the firm has preserved its ethos as it expands its footprint in the United States and Europe. The next few years could bring growing pains, but right now the reasons for alarm are few.