Madison Investments celebrated its 50th anniversary this year and we had the pleasure of sitting down with Steve Carl to hear his insights and experiences. Steve leads the firm in his role as Chair of the Executive Committee, and with over 21 years at Madison, we had much to discuss about his journey, the industry, and Madison Investments.
Can you reflect on your journey with Madison Investments?
First, I’d like to mention why I was drawn to Madison Investments. The combination of an owner-operator client-first culture, the strong belief in active investment management with emphasis on mitigating risk, and maybe, most importantly, a team of individuals who were not only exceptional at their jobs but fun to work with were the main reasons I joined the firm. Here we are 21 years later, and those same reasons are why I continue to love working here.
I never set a goal to run Madison Investments. The goal was simply to do my job as best as I could. It’s a privilege and honor to now lead Madison Investments, surrounded by experts in investment management, client service, distribution, operations, trading, compliance, IT, finance, and administration. When I started in 2003, the firm managed around $6.5 billion in assets; today, that number is over $27 billion, and we have maintained our client-first, owner-operator, fun culture. Our growth and success are deeply gratifying, and we only succeed if our clients succeed. This alignment is critical. The firm has navigated many difficult markets, evolved its investment and product lineup to remain competitive and benefit clients, and maintained a robust business infrastructure to support our growth. It also brings me incredible satisfaction and joy seeing our employees advance in their careers. I’m committed to ensuring that everyone at the company enjoys a fulfilling and successful experience, just as I have been fortunate enough to have. This business is competitive. The markets can humble you. If you put the clients first and work with great people, the journey is the true enjoyment.
How do you foster a culture of excellence, innovation and entrepreneurial spirit?
No job is too big or too small for all employees. Every leader and every manager rolls up their sleeves and does the work alongside their colleagues. This creates a trusting team environment where everyone is motivated to do their best, regardless of the task. Nobody wants to let their teammates down. We have a strong open-door policy, encouraging everyone to share their thoughts and ideas. It’s incredible what you can learn when you listen and care about what others have to say. Lastly, we have passionate people who enjoy the challenges of our industry and stay on top of it. If you combine passion, hard work, and a team-first mindset, your chances of success are very high.
Tell us about the market environment when Madison Investments was founded.
Madison recently hit a major milestone, celebrating its 50th anniversary in January 2024. The firm was founded in January 1974. The markets were tough and volatile around that time. So, resilience, adaptability, and a focus on generating strong returns while preserving capital during the down times have always been part of our core. Over the years, we’ve navigated all kinds of market environments. We believe the real strength of an investment firm is proven during tough times, and we’re proud to have maintained a steady approach through market fluctuations. All-weather firms are long-lasting.
What sets Madison Investments apart from other investment managers in the industry?
Madison Investments is one of the United States’s largest privately held, employee-owned investment firms. We have heavy and broad employee ownership. This structure means everyone has a personal stake in the firm’s success. We believe when you own part of the business, you’re naturally driven to work harder for clients, colleagues, and yourself. This structure strengthens our commitment to our mission and also provides our clients with the reassurance that we’re here for the long haul. Another distinguishing factor is that many of our leadership team, investment teams, and employees are invested in the same strategies we offer to our clients, which aligns our interests and demonstrates confidence in what we do. How can we expect people to invest in our strategies if we’re not invested alongside them? Madison Investments also has a trusting, transparent brand. We do what we say we are going to do.
What do you attribute our growth and success to?
Consistency. For over 50 years, we have consistently delivered investment performance that is true to our philosophy and process. We have put our clients’ interests first and try to provide a fantastic client experience. Our well-deserved reputation for trustworthiness and transparency has served us well. While thriving markets are certainly advantageous, it’s our transparency and accountability during challenging times that build trust with our clients. This trust not only strengthens our relationships but also plays a big role in our high client retention rates.
How has the industry changed over your career?
The investment industry is ever-changing. Technology improvements have had a significant impact. Thirty years ago, I didn’t own a cell phone and had to use a map to get around when I traveled! Technology has improved every aspect of our business, from Investment Management to Distribution to Business Operations, making us more efficient. Clients have far more information and investment choices and they have it right at their fingertips. This has its benefits, for example more competition means lower fees. On the other hand, there is an abundance of information, and trying to figure out what is true and not true and what is important and not can be quite difficult. What has not changed is the importance of strong relationships and the need for excellent investment advice and returns.
What have the last 5 years taught you about investing and running a business?
Business, in large part, is about relationships— with clients, colleagues, and vendors. Strong relationships are key to lasting success. Open communication and listening to different perspectives are essential, as great ideas can come from anywhere within the organization. Continuous improvement is vital. You can't afford to stagnate. If you do, you will fall behind. Therefore, a commitment to growth, a passion for the business, and hard work are table stakes. These principles have guided us through some challenging times, reminding us that even in the face of adversity, we can thrive if we stick together and stick to our plan.
Looking ahead, what trends do you foresee having the biggest impact on the firm and our industry?
There are several key trends shaping our industry right now. Technology and AI enhance productivity and efficiency and are becoming a supplement to our daily work. Keeping up with these advancements will be crucial, as they'll also change how we develop products and serve our clients. Product development in our business is always evolving, so it will be important to differentiate between fleeting fads and meaningful, long-term changes. On top of that, I expect we will see more industry consolidation, with RIAs, banks, broker-dealers, and credit unions coming together. The importance of strong relationships remains clear. By focusing on exceptional client service, Madison will continue to successfully navigate these changes and this will help ensure our long-term success.
How is Madison Investments equipped or positioned to meet future challenges or opportunities?
Our business model and organizational structure give us a great advantage. Having centralized support functions—accounting, operations, sales, and so on—means our investment teams can be laser-focused on managing client portfolios. But it also enables us to quickly respond to changes in our industry, and with the talent we have in those areas, adapting has come easy for us. Ultimately, it’s our people, our culture, and our focus on client results that give me much confidence that Madison Investments will be ready for whatever comes our way.
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