Clearwater Capital Advisors, LLC (Hoffman Estates)

Name: Clearwater Capital Advisors, LLC
Address: 2800 West Higgins Road, Hoffman Estates, IL, 60169
Telephone: 847-841-8650

Clearwater Capital Advisors, LLC is a large advisory firm based in Hoffman Estates. It manages $689.26 million of regulatory assets for 1,609 client accounts. It has been registered with the SEC as an adviser since 2017 and has operated in the jurisdictions of Arizona, California, Colorado, and 17 other states.

Clearwater Capital Advisors provides financial planning services, portfolio management for individuals and small businesses, portfolio management for businesses and institutional clients, pension consulting services, educational seminars and workshops, and qualified plan consulting. It prepares financial plans for less than 10 clients. On top of advisory services, the firm doesn't engage in other business activities.

Clearwater Capital Advisors: assets under management

The assets under management (AUM) of Clearwater Capital Advisors, LLC is $689.26 million. The firm's AUM has grown by 43% since the beginning of its operation, and $1 million of the total AUM is attributable to clients outside of the United States.

The firm manages $602.43 million in discretionary accounts and $86.84 million in non-discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $381.28 thousand each. Non-discretionary accounts, where clients actively manage their portfolios, generally hold around $2.99 million.

Clearwater Capital Advisors has custody of $154.91 million in cash and securities for 185 clients in total but doesn’t act as a qualified custodian.

Investments

The firm invests in investment and business development companies the most. They account for 90% of the total AUM. The second-largest asset type is exchange traded securities, which make up 4% of the firm’s portfolio. Investments in cash and cash equivalents form 3% of the total invested assets.

Fees & Commissions

The advisory firm has several streams of revenue. Clients pay Clearwater Capital Advisors, LLC for their services and products based on a percentage of assets under management, hourly charges, and fixed fees. Flat-fee based compensation is the most transparent and the one you can safely predict in advance. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients Clearwater Capital Advisors serves?

The firm provides services to individuals, charitable organizations, high net worth individuals, corporations or other businesses, and pension and profit sharing plans. The largest group of clients of Clearwater Capital Advisors is high net worth individuals with 146 clients and $433.44 million of assets under management. Among the 7 most similar advisory firms, Clearwater Capital Advisors has the 3rd lowest percentage of high net worth individuals out of all clients.

The amount of regulatory assets under management is $689.26 million for 632 clients that can include trusts, estates, and 401(k) plans and IRAs of individuals and their family members. 1% of the firm’s clients are foreign persons or businesses.

Clearwater Capital Advisors doesn't advise any private funds.

Careers at Clearwater Capital Advisors, LLC

The company employs 10 people that are either part- or full-time employees. 90 percent of the employees work as investment advisers or researchers. 10 employees are registered as investment adviser representatives with the state securities authorities.

There isn’t anyone with the role of looking for and bringing in new clients on behalf of the firm. The firm doesn’t compensate employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

John William Sleeting joined the executive team most recently as the Chief Operating Officer.

Direct owners and executive officers

Name	Entity	Date acquired	Ownership	Employer ID
John Edward Chapman	Chief executive officer	1 Mar 2006	Other	1272721
Alan Rodney Krause	Chief financial officer	1 Mar 2006	Other	5126272
Leonard George Borhart	Member	1 Mar 2006	Other	5126252
Jeffrey Paul Dehaan	Chief compliance officer	1 Mar 2013	Other	5536686
Llc Clearwater Capital Partners	Holding company	1 May 2017	75% - 100%	82-1356798
John William Sleeting	Chief operating officer	1 Jul 2018	Other	5649371

Indirect Owners

The SEC currently registers 3 indirect owners.

Name	Entity	Date acquired	Ownership	Employer ID
John Edward Chapman	Managing member	1 May 2017	25% - 50%	1272721
Leonard George Borhart	Member	1 May 2017	25% - 50%	5126252
Alan Rodney Krause	Member	1 May 2017	25% - 50%	5126272

Based in Hoffman Estates

The principal office where Clearwater Capital Advisors, LLC performs its advisory services is located at 2800 West Higgins Road, Hoffman Estates, IL 60169, which is also the mailing address of the firm. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 847-841-8650 or by fax 847-841-1866. The normal business hours are 8:00 - 5:00 on Monday - Friday. You can find more information about the New York firm at ccpwealth.com.