Firm: Pallas Capital Advisors
Name: Rich Mullen
Location: Braintree, MA
Team Custodied Assets: $3.2 billion
Forbes Rankings: America’s Top RIA Firms
Background: Rich Mullen grew up in the Farmington Valley area of Connecticut, and graduated from University of Arizona in 1988. He planned to go to law school but after a chance meeting with an old friend working at Lehman Brothers Mullen decided to become a broker, starting at Prudential in 1993 and eventually met one of his current managing partners, Charles Evangelakos. They left to Morgan Stanley in 1999, where they met Pallas’ other managing partner, Greg Boyle, before the three moved to UBS in 2011. Eight years later, they went independent and founded Pallas. Today the firm numbers 33 employees across four different states, servicing roughly 400 clients in total.
Investment Philosophy/Strategy: Mullen and his team focus on what they call tax-optimized wealth management: They stay ahead of the curve on constantly changing tax laws. “Through proper planning you can achieve a return on your assets ” says Mullen.
“We also look for private credit to fill those fixed income needs as it is a good diversifier and provider of income,” says Mullen. “We see a tremendous amount of alpha in private markets.” His team uses a family office-type approach to investing in alternatives, leveraging a network of existing relationships to offer clients more bespoke opportunities like investing in GP Stake Funds or professional sports teams.
Investment Outlook: Mullen and his team are more dovish than most when it comes to the Federal Reserve’s monetary policy, predicting another 50 basis point rate cut before the end of the year. “The trend right now is for the Fed to get in front of this and these cuts will allow for a soft landing,” says Mullen, adding, “but that also means we’re probably going to have below average economic growth in 2025.” He sees the S&P 500—absent any sort of major geopolitical event—posting a high single-digit return next year. Mullen also likes the bond market as a good source of income during a downward trending interest rate environment. “The reduction in rates should make it easier for companies to finance acquisitions, which should see M&A activity pickup, especially with so much cash that has been sitting on the sidelines finally coming into play,” says Mullen. “Real estate has taken a hit, but easing rates are also likely to spur increased demand for construction.”
Best Advice: “Many affluent individuals focus solely on investment returns without considering how taxes will impact their overall wealth,” says Mullen. By integrating tax optimization, as well as other aspects like estate planning, it is possible to significantly increase returns. “We don’t react to market changes, we anticipate them by integrating all of these different planning aspects,” he says. “Keep an eye on long term goals rather than short term market movements.”
Off The Clock: Outside of work, Mullen loves to be out on the water. He lives on the ocean near the South Shore of Boston, so he often goes out on a boat with friends or family—whether it’s for Tuna fishing or just to spot whales. “It never gets old seeing the unbelievable marine wildlife,” he says.