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Elite wealth managers aren’t rushing to embrace artificial intelligence for finding ultra-high-net-worth clients, despite a surge of pitches from market data firms. The reason? Building trust with individuals managing over $100 million isn’t about a clever email, but about delivering exceptional, personalized service.
The High-Touch Approach Still Reigns
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Personal connections and going above and beyond are proving more effective than AI-driven prospecting.
- AI-driven data mining often resurfaces information already available through traditional methods.
- Ultra-high-net-worth individuals typically already have financial advisors.
- Personal referrals and networking with professionals like estate lawyers are key growth drivers.
- Advisors prioritize quality client relationships over sheer quantity.
“When we’re looking for clients with north of $100 million, I struggle to think they’re going to take a cold email and say, ‘Yes, here’s my balance sheet,’” said Matthew Fleissig, CEO and co-founder of Pathstone, a registered investor advisory with $182 billion in client assets. He believes genuine connections are forged through memorable experiences.
Fleissig recounted how Pathstone once arranged a private jet in under an hour to transport a client from New Orleans to Albany, New York, before their mother’s passing. “Those types of things are how we are able to grow the business,” he explained. “We create moments that matter.”
He added that the promise of AI as a gamechanger in client prospecting hasn’t materialized. “These databases have been around forever, and now people have added an AI overlay to be able to mine the database,” Fleissig said. “Most of the time, it’s very similar strategies of aggregating data sources that are public or you can pay for, and trying to feed you lists of people. We, at this point, can do that ourselves.”
The Cost of AI Tools Doesn’t Justify the Return
A growth executive at a high-end national RIA, who requested anonymity, shared that they’ve tested at least 20 AI client prospecting tools in the last six months. The executive found that most rely on widely available large language models like Claude and GPT.
“You’re slapping a coat of paint on one of five major LLMs and selling through the fact that ‘Oh our info is better,’” the executive said. “Do I pay them $100,000 or do I talk to my IT team and figure out a way of doing it for cents on the dollar?”
Andrew Douglass, head of growth at AlTi Tiedemann Global, echoed this sentiment, noting the limited competitive advantage of using nonexclusive data. He explained that when his firm previously cold-called prospects from these databases, they often already had advisors or had been contacted by numerous other firms.
For the past five years, client referrals and personal networks have accounted for 40% and 30%, respectively, of AlTi’s organic growth. An additional 30% stems from networking with professionals such as trusts and estates lawyers and accountants who often work with clients experiencing significant financial events, like inheritances or business sales.
“Most people go out and say, ‘Our minimums are $25 million so whoever has $25 million in liquid assets makes a great client.’ We don’t think that that is a strategy that ultimately works,” Douglass said, speaking from the Heckerling estate planning conference in Orlando, Florida. “We think really being looked at in the market as a subject matter expert, consistently showing up to places like Heckerling and where the professional community is and being able to provide value, is the most effective way to grow the business.”
Quality Over Quantity: A Long-Term Game
While word-of-mouth referrals aren’t easily scalable, Douglass noted that the sales cycle for ultra-high-net-worth clients can extend 12 months or longer. AlTi Global prioritizes quality over quantity, targeting 25 to 30 new U.S. clients annually, which could generate $1.5 billion to $2 billion in new assets.
Eden Ovadia, CEO of AI client prospecting startup Finny, acknowledged the skepticism. Founded in late 2023, Finny positions AI prospecting as a complement to traditional outreach, not a replacement.
Ovadia described a common use case: promoting exclusive events to a targeted audience. For example, an advisor could use Finny to identify real estate professionals interested in the Miami Heat to invite them to a game in a private suite. Finny can also pinpoint clients who might benefit from advice following a life transition, such as those who recently purchased a property worth at least $5 million near Jackson Hole, Wyoming.
“There’s definitely a little bit of cynicism we have to get over when we talk to ultra-high-net-worth firms and they’re, ‘No, we don’t do AI. We want everything to feel really personalized, really white glove,’” she said. “I couldn’t agree more. The idea here is we actually can surface more data about your clients or your prospects than even you know.”
Fleissig noted a surprising development: Pathstone has received five inbound inquiries in the past two weeks from potential clients with at least $100 million in assets who found the firm through AI search engines like Gemini and ChatGPT.
Douglass remains open-minded, stating, “If someone has a better mousetrap, we’re certainly excited about what the market’s going to look like and bring to bear.”
