Episode Summary
Executive Summary: In this Bloomberg Masters in Business interview, Greg Fleming, CEO of Rockefeller Capital Management, discusses his career from investment banking at Merrill Lynch to leading the transformation of the Rockefeller family office. He shares insights on key deals like the BlackRock merger and Merrill Lynch's sale to Bank of America during the 2008 crisis, emphasizing the importance of stepping up under pressure. Fleming also covers the rise of ESG investing, holistic wealth management, and lessons on leadership and hiring great people.
Main Topics: Career Journey and Key Deals (Priority: 5/5): Fleming recounts his transition from management consulting to investment banking at Merrill Lynch, his role in the BlackRock deal (2005) and the sale of Merrill Lynch to Bank of America (2008), highlighting the intense weekend negotiation. 2008 Financial Crisis Leadership (Priority: 5/5): Fleming describes the stress of being co-COO during the crisis, raising $25 billion in capital, and the decision to sell Merrill Lynch to protect 65,000 employees and the 95-year-old brand. Rockefeller Capital Management Transformation (Priority: 4/5): The evolution from a single-family office (founded 1882) to a multi-family office and now a full-service wealth management firm with strategic advisory and asset management, focusing on ESG and holistic client services. ESG and Sustainable Investing (Priority: 4/5): Fleming argues ESG is a secular growth trend driven by millennials and Gen Z, noting Rockefeller's early involvement in impact investing and the growing demand for climate solutions and ocean engagement strategies. Wealth Inequality and Philanthropy (Priority: 3/5): Discussion on how COVID-19 exacerbated wealth inequality and how ultra-high-net-worth clients are addressing it through philanthropy, education, and giving back, with Fleming emphasizing the American dream of opportunity. Leadership and Mentorship Advice (Priority: 3/5): Fleming shares advice for young professionals: work for great people, hire people better than you, and maintain a long-term perspective. He cites mentors Jerry Kenney and Larry Fink, and quotes Mark Twain and Ernest Shackleton. Derek Jeter and the Miami Marlins (Priority: 2/5): Fleming discusses his friendship with Derek Jeter, advising on the Marlins acquisition, and Jeter's role as special advisor to the CEO at Rockefeller, highlighting shared values and leadership insights.
Key Arguments: In a crisis, you must step up and take responsibility; don't wonder why pressure is on you. Hiring great people and working for great mentors is crucial for career success. Markets are driven by human emotions and often overshoot; long-term perspective is essential. ESG investing is not a fad but a secular trend driven by younger generations and corporate focus on broader stakeholders. Wealth management should be holistic, addressing not just investments but also lifestyle, security, and philanthropy. The American dream of opportunity remains central; addressing wealth inequality requires education and skill-building.
Data Points: BlackRock AUM: $8 trillion - BlackRock grew to this size after the Merrill Lynch asset management deal in 2005. Capital raised during 2008 crisis: $25 billion - Merrill Lynch raised this amount on a base of $30 billion in capital to shore up its balance sheet. Merrill Lynch sale price per share: $29 - Negotiated during the weekend of September 13-14, 2008; stock had closed at $17 on Friday. Rockefeller family office founding year: 1882 - Originally the family office of John D. Rockefeller Sr., now serving seventh generation. Voting electorate age 18-39 in 2020: 35% - Fleming cites this to show the growing influence of younger generations on ESG and politics. Number of generations served by Rockefeller: 7 - Rockefeller Capital Management works with the seventh generation of the Rockefeller family.
Pivotal Quotes: "True moral courage is optimism." — Greg Fleming (quoting Ernest Shackleton): Fleming uses this quote to illustrate leadership and positive motivation during difficult times. "Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you too can become great." — Greg Fleming (quoting Mark Twain): Advice he gives to young people about finding great mentors and avoiding negativity. "When you're in a position of responsibility and authority and things are happening around you, you need to step up." — Greg Fleming: Reflecting on his role during the 2008 financial crisis and the lesson he imparts to his children.
Implications: This podcast offers valuable lessons on crisis leadership, the evolution of wealth management toward holistic and ESG-focused services, and the importance of mentorship. For listeners, it underscores the need for long-term thinking, hiring great people, and adapting to generational shifts in investing and philanthropy.
About Masters in Business
Barry Ritholtz speaks with the people that shape markets, investing and business.