Avalon Advisors LLC (Houston)

Avalon Advisors provides financial planning services, portfolio management for individuals and small businesses, portfolio management for pooled investment vehicles, portfolio management for businesses and institutional clients, selection of other advisers, educational seminars and workshops, and model portfolio provider. It prepares financial plans for less than 10 clients. On top of advisory services, the firm doesn't engage in other business activities.

Avalon Advisors: assets under management

The assets under management (AUM) of Avalon Advisors LLC is $7.39 billion. The firm's AUM has grown by 152% since the beginning of its operation, and the company doesn't manage any assets belonging to foreign clients.

The firm manages $6.3 billion in discretionary accounts and $1.08 billion in non-discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $1.55 million each. Non-discretionary accounts, where clients actively manage their portfolios, generally hold around $1.52 million.

Avalon Advisors has custody of $4.91 billion in cash and securities for 1,439 clients in total but doesn’t act as a qualified custodian.

Investments

The firm invests in exchange traded securities the most. They account for 57% of the total AUM. The second-largest asset type is state and local bonds, which make up 26% of the firm’s portfolio. Investments in investment and business development companies form 5% of the total invested assets.

Fees & Commissions

The advisory firm has several streams of revenue. Clients pay Avalon Advisors LLC for their services and products based on a percentage of assets under management and performance-based fees. The adviser charges an additional fee when a set benchmark is outperformed. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients Avalon Advisors serves?

The firm provides services to individuals, insurance companies, charitable organizations, high net worth individuals, pooled investment vehicles, corporations or other businesses, and pension and profit sharing plans. The largest group of clients of Avalon Advisors is high net worth individuals with 1,260 clients and $5.52 billion of assets under management. Among the 10 most similar advisory firms, Avalon Advisors has the 4th highest percentage of high net worth individuals out of all clients.

The amount of regulatory assets under management is $7.36 billion for 1,724 clients that can include trusts, estates, and 401(k) plans and IRAs of individuals and their family members. None of the firm’s clients are foreign persons or businesses.

Avalon Advisors also advises several private funds. Namely, two other private funds and three private equity funds. The minimum investment commitment required of non-related persons ranges from $75,000 to $500,000.

Careers at Avalon Advisors LLC

The company employs 68 people that are either part- or full-time employees. 66 percent of the employees work as investment advisers or researchers. 39 employees are registered as investment adviser representatives with the state securities authorities.

There isn’t anyone with the role of looking for and bringing in new clients on behalf of the firm. The firm compensates employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

Direct owners and executive officers

Indirect Owners

The SEC currently registers 40 indirect owners.

Based in Houston

The principal office where Avalon Advisors LLC performs its advisory services is located at 2929 Allen Parkway, Houston, TX 77019 7124, which is also the mailing address of the firm. An additional office of the firm is in San Antonio, TX. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 713-238-2050 or by fax 713-238-2092. The normal business hours are 7:30 a.m. to 5:00 p.m. on Monday - Friday. You can find more information about the New York firm at avalonadvisorslp.com and its LinkedIn profile.

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