RoseCap was founded in 2010 by Matthew Rosenberg. With a passion for investments and financial analysis, Mr. Rosenberg decided to leave the world of buy-side finance and pursue a career in investment advisory. In 2010 he interviewed with multiple advisory firms including several of the large banks and financial institutions that have strong brand recognition. However he could not get settled on the business models of these firms which emphasized asset gathering over client service, selling high fee/commission products (i.e. life insurance, annuities, and high expense ratio mutual funds), and not putting the best interest of the client first.
I knew my very first client would be my father who had recently retired. My second client was a very close friend. This is typical for a person starting in the financial services industry - the majority of their early clients are friends and family. I simply could not imagine investing the money of those closest to me in insurance products or securities that paid the highest commissions to the bank and/or myself. An investment advisor should not feel pressured, or be incentivized, to oversell anyone let alone family and friends. A fiduciary service - treating my clients’ money as if it were my own - is the type of service I want to provide.
Matt soon learned of a relatively new model of investor advisor in financial services knows as the “Independent Fee-Only Advisor”. These advisors provide investment advice to clients and are paid a flat-fee rate for their work, regardless of the advice provided. Further, fee-only advisors do not receive commissions or kickbacks from the fund companies for placing client assets in funds. This was the business model he wanted but independent advisors were few and far between. That's when he decided to form his own - RoseCap Investment Advisors.