John Kernodle, President, Strathmore Capital Advisors

Invest: spoke with John Kernodle, president of Strathmore Capital Advisors, about consolidation in the Registered Investment Advisor (RIA) space, Charlotte’s advantages as a growth market, and the firm’s client-first strategy for expansion. “The focus is not on growth for the sake of growth; it’s on growth for the sake of being able to bring in more talent and serve our clients even better,” Kernodle said.

How would you describe the investment and deal environment in Charlotte? Have there been any notable changes over the past year?

There continues to be a lot of deal activity in our industry, especially in the RIA (Registered Investment Advisor) space, and much of it is being driven by large, national, private equity-backed aggregators. They are active across the country and certainly in the Southeast, so consolidation remains a major theme.

What makes our position different is that we offer a more regional and more personal alternative. We are employee-owned, we do not have outside private equity capital, and our footprint is clearly focused on North Carolina, South Carolina, and Virginia. For firms considering a partnership, that can be a much easier model to understand than a firm with $15 billion, $20 billion, or $30 billion in assets under management.

One of the more meaningful changes, at least from our perspective, is that there were not many firms of our size pursuing acquisitions when we began moving more deliberately in that direction. We were much smaller at the time, roughly in the $400 million to $450 million AUM range, so stepping into the market as a buyer created a distinct position for us.

You completed two acquisitions in 2025. What were the goals behind those moves, and how have they strengthened your firm?

We look at acquisitions through several lenses, but talent is one of the biggest. In both of the firms we brought in, we were interested in the people and the expertise they added to our platform.

Those deals also support our long-term vision, which is to become the largest independent employee-owned RIA in the Carolinas and Virginia. For us, growth is not about building scale just to turn around and sell to a larger aggregator. It is about strengthening the firm so we can serve clients at a higher level.

As we grow, we are able to bring in people with deeper expertise in areas that matter to clients. A good example is adding a full-time CPA last year. That gives us the ability to have much more sophisticated tax conversations alongside our investment and financial planning work. Those kinds of additions deepen our bench and improve what we can deliver.

How are interest rates and broader economic conditions affecting deal activity and valuations?

Higher interest rates absolutely make deals tougher. When rates go up, the math becomes more difficult, financing becomes more expensive, and that impacts everyone.

That said, we are not out there trying to do transactions for transactions’ sake. We are not a serial aggregator. We spend a lot of time evaluating fit, geography, and alignment. If the people, philosophy, and client approach are not aligned, then the deal is not going to create long-term value.

We also had a strong year of organic growth last year, and that matters a great deal. For a firm like ours, organic growth provides the foundation that makes selective acquisitions possible. It is likely even more challenging for the largest private equity-backed firms because they are also operating against return expectations for investors.

How are client expectations evolving, and how is that shaping your advisory model?

Client expectations have changed significantly. Years ago, it was more common for an advisor to simply manage investments and charge a fee for that. Today, that is much harder to defend as a complete value proposition.

Clients want a broader relationship. They are busy in their own lives and careers, and they want a trusted team that can help coordinate more of their financial picture. That includes financial planning, tax strategy, estate conversations, investment management, and now even access to lending solutions.

Competition is also pushing the industry forward. There are many strong firms in this market, from RIAs to banks to insurance-based platforms. That competition is healthy because it forces everyone to improve. For us, it reinforces the need to be a one-stop shop where clients can consolidate their financial lives and have regular, coordinated conversations around a clear plan.

What makes Charlotte a strong market for your business?

Charlotte is one of the best places in the country to do business. It has an outstanding mix of livability, pro-business policy, population growth, and a strong university system.

For a firm like ours, one of the biggest advantages is talent. Charlotte and Raleigh attract young professionals who want to build careers here, and that creates a deeper labor pool for growing firms. Not every market in the Southeast is the same in that regard. Some places are much harder when it comes to convincing people to relocate.

Charlotte also has a strong reputation nationally. When you travel, people talk about coming here. That momentum benefits firms across industries, and for us, it creates a powerful environment for growth.

How are you attracting and retaining talent in such a competitive market?

Part of it is simply that our profile has grown. As we have expanded, added capabilities, and become more visible in the market, more people are aware of what we are building and want to be part of it.

We also benefit from long-standing networks. Many of us have been in Charlotte for a long time, and those professional relationships matter when it comes to identifying talent and staying connected to the market.

At the same time, the RIA channel has become increasingly attractive to professionals coming from other parts of the financial industry. People are drawn to independence, to a more client-centered model, and to the opportunity to join a firm that is growing with intention.

How are you leveraging technology and AI within your firm?

Technology is already making us more efficient, and it will continue to reshape how we operate. The way we worked five years ago is different from the way we work today, and I expect the next five years will bring even more change.

We are evaluating those tools the same way many firms are, trying to understand where they fit best and where they can genuinely improve operations and service. There is no doubt they help us work more efficiently.

This also remains a people business. Clients still want someone they know, trust, and can talk to. They want an advisor who understands their family, their goals, and where they are in life. Technology can support that work, but it is not going to replace the human side of the relationship.

What are your top priorities for the next two to three years?

Our vision is clear. We want to be the preeminent independently owned RIA across our footprint, which we think of broadly as the market from Washington, D.C. to Atlanta, with a particular focus on the Carolinas and Virginia.

To get there, we are focused on both organic and inorganic growth, but I cannot emphasize enough how important organic growth is. There is no substitute for going out, serving clients well, and building the business naturally. That gives us the strength to invest in talent and capabilities.

Selective acquisitions will continue to be part of the strategy, but always with the client at the top of the pyramid. The reason to grow is not growth alone. It is to bring in more expertise, expand service offerings, and continue improving what we do for clients.

The focus is not on growth for the sake of growth; it’s on growth for the sake of being able to bring in more talent and serve our clients even better.

Is there anything else you would like to add?

What I would emphasize is that our independence matters. It matters to clients, and it matters to firms that may be looking for a different kind of partner. We are building for the long term with employee ownership at the center, and that provides a great deal of comfort and continuity.

We believe Charlotte and the broader Southeast will continue to grow, and we believe we are well positioned to grow right alongside it.