Spotlight On: Scot Johnson, Principal & Chief Investment Officer, Adell, Harriman & Carpenter Inc.
February 2025 — Scot Johnson, principal and chief investment officer of Adell, Harriman & Carpenter Inc. , sat down with Invest: to discuss the state of the wealth management sector in Houston. Johnson also shared his thoughts on industry trends, what sets them apart as a firm, technological advancements, and their top priorities moving forward.
What is your overview of the wealth management sector in the Houston region, and what are some of the best opportunities?
One of the best things Houston has going for it from a wealth management perspective is population growth. People are moving here from other parts of the country because there is opportunity. Opportunity usually translates into income, and our role is to help individuals and families take care of the wealth they’re building here in the Houston area. We try to help them make good decisions about spending, saving and investing and the legacy they want to leave.
What trends are you seeing in the industry that are making an impact for better or for worse?
There’s been a big move over recent decades from traditional stock-picking to passive investing, where you own an entire basket of stocks like the S&P 500. The most important thing is for people to be saving and investing, but we think the stocks you don’t own are as important as the stocks you do own. It could be from a financial perspective, where certain stocks are more attractive from a growth and profitability standpoint. It could also be from a personal perspective, where you want the companies in your portfolio to reflect your values, and not every company is going to pass that litmus test.
What is it that differentiates Adell, Harriman & Carpenter from its competitors in the region?
We provide a high-touch, boutique experience that is akin to visiting a bespoke tailor. When you compare us to a place like Jos. A. Bank, they are very much “what you see on the rack is what you get” when you go shopping for clothes there. We, on the other hand, are more focused on how we can best serve and supply you with exactly what you need; the portfolio and plan is going to fit you because it’s made for you. We’re creating your portfolio from scratch rather than offering a menu of options to choose from. In addition, to wealth management, there’s the high-touch relationship and service. The more our clients want us to take care of for them and help them with, the stronger the relationship is.
What are the company’s key areas of focus for sustainable growth?
Much of our clientele is retired and they are in the distribution phase of life. They’re now funding life’s expenses from their investment portfolios rather than a paycheck. We want to connect with younger generations of those families so we can help them build the same kind of wealth their parents and grandparents built, and the sooner we can start building those relationships, the stronger they’ll likely be. With our older clientele in that distribution phase, they’re also looking at estate planning, how they can give back charitably, and how they can use their portfolio resources in a tax-efficient manner. Hopefully the way we simplify their parents’ and grandparents’ financial lives resonates with those younger generations.
What technological advancements or digital transformations has the firm implemented to enhance customer experience and operational efficiency?
Everything has gone digital, and through this, it allows us to do a lot of things more quickly and far more efficiently. It makes it easier knowing we don’t have to rely on paper or physical files; we have high-speed software platforms that allow us to archive and access our files and paperwork, which really simplifies workflows for us and our clients.
Looking ahead, what are the firm’s top priorities and goals in the near term, especially considering potential economic headwinds?
As our name probably implies, we have three founders. Two are still very actively engaged in our business, but they’ll eventually want to retire. Given that reality, we’re in the ongoing process of building out our second generation of advisors to carry the firm forward for the long-term, and I’m part of that generation. We’re constantly thinking about the needs of our clients and how we can evolve to better serve them, while sustaining the principles that have guided us for almost 30 years. Throughout our team, it’s vital to build with the right people because that’s how we build and maintain a spirit of collaboration that prioritizes our clients’ interests. That collaboration sets us up to succeed and thrive well into the future.
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