Team Custodied Assets: $6.6 billion

Background: Born and raised in New York City, David Karp studied finance and economics at American University before beginning his career at Merrill Lynch in the late 1990s. There, he helped build one of the firm’s early fee-based advisory practices and later co-founded a private banking office in Washington, D.C., just as the region began generating significant new wealth following the early-2000s technology and government contracting boom. After more than a decade at Merrill, Karp launched his own firm in 2011 with a focus on independent advice and a family-office-style model. He later joined Cresset in 2020, seeking a partner that would allow him to focus more directly on client relationships and investment strategy. Today, Karp primarily works with entrepreneurs and business owners, often guiding clients through liquidity events. “I’ve personally been through 166 exit events with clients—people who have basically built and monetized their life’s work,” he says.

Competitive Edge: “Most people in my industry manage investments. We manage wealth,” he says, noting that his team often advises on tax strategy, estate planning, liquidity planning and broader family decisions. That relationship-first model often begins well before clients formally engage. “We invest an extraordinary amount in clients before they pay us any fee,” he says. “We build relationships. Trust is earned. It’s not given.” Karp also emphasizes accessibility and personal engagement. “Few things I enjoy more than doing a breakfast, lunch or dinner with a client in a time of need,” he says. “I get energized being the first call.”

Investment Approach: Karp builds each portfolio individually, tailoring allocations to client goals and risk tolerance. “Every client portfolio is bespoke… we don’t have a model that you buy into,” he says. “In building a portfolio, there’s only three things that we have control over: fees, risk and taxes. I can’t control markets.” To implement that philosophy, Karp uses a framework he describes as “efficient beta, private alpha,” combining low-cost public market exposure with targeted allocations to private investments where inefficiencies may offer higher return potential. He also emphasizes discipline and patience. “You don’t respond to every headline in the news,” he says, noting that avoiding unnecessary trading can improve tax efficiency and long-term outcomes.

Best Advice: Karp often emphasizes discipline and behavioral awareness when advising clients. “Nothing has destroyed more fortunes than someone watching their neighbor get rich,” he says. “Know thyself as an investor and play your own game.”

© Forbes