Firm Description
Maddix Wealth, LLC (“Maddix Wealth” or the “Firm” or the “Adviser”) is a limited liability company formed
in the State of Delaware and is a wholly owned subsidiary of Maddix Holdings, LLC (“Maddix Holdings”), an
SEC-registered investment adviser. Maddix Holdings and Maddix Wealth are referred to collectively as
“Maddix.”
The Firm is owned by Merrill (Tom) Peterson and Benjamin Rogers. Maddix Holdings is the sole member and
manager of Maddix Wealth.
Maddix is an independent investment and advisory firm that is client-centered in its mission. Maddix’s
client base includes many different types of individuals and institutions. Maddix Wealth services its clients
through a Third-Party Asset Management Platform (”TAMP”) administered by Axxcess Wealth
Management, LLC, another SEC-registered investment adviser (“Axxcess”) with whom certain Maddix
investment adviser representatives were previously affiliated. Information about Axxcess is available at
www.axxcessplatform.com and through the SEC’s website
at https://adviserinfo.sec.gov.
Maddix Wealth provides advice through consultation with the client, which may include determination of
financial objectives, risk assessment, risk management, capital allocation and budgeting, identification of
financial problems, cash flow management, strategic planning, investment management, retirement plan
design, installation, and management.
Tailored Relationships
Maddix makes a point to know its clients’ circumstances in order to implement individually tailored
financial solutions. Meeting the needs of each client in order to sustain a relationship that creates value
for the client requires a depth of knowledge, routine contact, and a requirement to collaborate with a
client's existing advisors. Client interviews, analysis of current and projected financial requirements, risk
tolerance, and portfolio goals are established at the beginning and throughout the client relationship.
Types of Advisory Services
Maddix Wealth’s client base is comprised of family offices, high net worth investors, business owners and
retirement plans. Maddix Wealth provides services in the following areas:
Core Services. Maddix Wealth’s core services are focused on wealth management. Core services are highly
tailored to each client, as Maddix Wealth does not manage a “one size fits all” model portfolio. Maddix
Wealth’s client accounts are monitored on at least a quarterly basis and focused on meeting current and
evolving financial needs. Maddix Wealth’s investment adviser representatives assist client investment
decisions by endeavoring to understand the client’s financial goals and objectives in the areas of
investment allocation, retirement planning, estate planning, and corporate planning. Maddix Wealth will
review the client’s current financial position taking into account the stated financial goals and objectives
of the client. Maddix Wealth will frequently establish and formalize a customized investment strategy for
each client or account being managed. Portfolios are designed and managed using a mix of investments,
including stocks, bonds, mutual funds (multiple asset classes), third party managers, exchange- traded
funds (“ETFs”), notes, real estate investment trusts, business development companies, and alternative
investments such as hedge funds and private equity. Clients have the option of granting either fully
discretionary authority or limited discretionary authority to Maddix Wealth regarding their investment
accounts. Certain third-party money managers available to clients through the Axxcess TAMP are only
available on a fully discretionary basis. Maddix Wealth also provides other advisory consulting services,
which include financial planning, capital allocation, wealth management, and advisement on financial
matters to businesses, high-net-worth individuals, family offices, and retirement plans.
Investment Advisory Services. Most clients choose to have Maddix Wealth advise them on matters related
to their wealth management and the implementation of their investment strategy. Maddix Wealth
provides investment advisory services to its clients on a discretionary or non-discretionary basis on both
taxable and tax-deferred accounts. The advisory services include, among other things, providing advice
regarding both tactical and strategic asset allocation and the selection of investments. Maddix Wealth’s
advisory services are guided by the stated objectives provided for in a client profile or investment policy
statement. Maddix Wealth considers the client’s risk tolerance and financial status prior to making any
recommendations.
Advisory Services. Separate from Investment Advisory Services described above, Maddix Wealth provides
general advisory services to client projects which may or may not be related to wealth management and
investment strategy. Advisory services are focused on areas such as real estate, business interests, or
diligence activities. Many of Maddix Wealth’s clients rely on it for advice in a variety of financial decisions
with respect to their family office establishment and governance, purchasing or selling businesses, raising
capital, negotiating, and structuring financial transactions. Maddix Wealth provides reporting of positions
and performance using the Axxcess TAMP’s Private Asset Platform. Private Asset Platform is an Axxcess
TAMP reporting service that integrates directed investments such as real estate, private equity, or private
credit in a consolidated manner. Neither Maddix nor Axxcess makes any representations or guarantees
about the accuracy of the information contained in its Private Asset Platform reports. The data contained
in the Private Asset Platform comes from the applicable administrator, sponsor, and or
auditor/accountant. Neither Maddix nor Axxcess provides valuation or pricing services.
Advisory services may be offered in conjunction with other services offered by Maddix as described below.
Maddix does not
provide legal or tax advice.
Retirement Accounts. When Maddix Wealth provides investment advice to clients regarding ERISA
retirement accounts or individual retirement accounts (“IRAs”), Maddix Wealth is a fiduciary within the
meaning of Title I of the Employee Retirement Income Security Act (“ERISA”) and/or the Internal Revenue
Code (“IRC”), as applicable, which are laws governing retirement accounts. When deemed to be in the
clients’ best interest, Maddix Wealth will provide investment advice to a client regarding a distribution
from an ERISA retirement account or to roll over the assets to an IRA or recommend a similar transaction
including rollovers from one ERISA sponsored Plan to another, one IRA to another IRA, or from one type
of account to another account (e.g., commission-based account to fee-based account). Such a
recommendation creates a conflict of interest if Maddix Wealth earns a new (or increases its current)
advisory fee as a result of the transaction. No client is under any obligation to roll over a retirement
account to an account managed by Maddix Wealth.
Corporate Services. Maddix Wealth provides services for companies and organizations. Services include
company-sponsored qualified and non-qualified retirement plan advisory services, plan installation
consultation (including a statement of investment policy and initial plan investment selection), and plan
consultation (including participant enrollment meetings, ongoing 404(c) compliance consultation,
investment due diligence, and third-party investment reporting). In advising corporate retirement plans,
Maddix Wealth uses third-party recordkeeping services who are solely responsible for the maintenance
and accuracy of their systems. As part of Maddix Wealth’s corporate services consulting, Maddix Wealth
also furnishes advice to clients on matters such as capital formation, investment structure, financial risk
management, business planning matters, and succession planning and may include estate and insurance
planning services.
Maddix Wealth does not directly participate in wrap fee programs.
TPMs. Maddix Wealth recommends third-party managers (“TPMs”) with full investment discretion and
trading authority. These TPMs have sole responsibility for the implementation of the investment program
with respect to the client’s account, for which investment discretion has been delegated by the client and
accepted by the institutional money managers. Maddix Wealth does not place orders for transactions in
the client’s account or otherwise exercise trading authority over an account managed by a TPM. Before
selecting and recommending a TPM, Maddix conducts diligence reviews and assessments of the potential
risk, rewards and other characteristics of the TPM. Factors considered by Maddix Wealth in its
determination of whether to recommend a TPM include but are not limited to regulatory compliance,
reputation, performance record, philosophy, continuity of management, service to clients, awareness of
after-tax performance objectives, minimum dollar investment requirements and fees. Information about
TPMs (e.g., performance figures, investment style, etc.) is obtained from tracking organizations, business
publications, money managers, personal interviews, and other sources which it believes are reliable.
Maddix Wealth may also consider other criteria, including, but not limited to, the administration,
recordkeeping, and reporting services provided by a manager or sponsor.. The terms and conditions under
which the client engages a TPM will be set forth in separate written agreements between (1) the client and
Maddix Wealth and (2) the client and the designated TPM. Maddix Wealth will continue to render advisory
services to the client relative to the ongoing monitoring and review of account performance, for which
Maddix Wealth will receive an annual advisory fee which is based upon a percentage of the market value
of the assets being managed by the designated TPM. Factors that Maddix Wealth considers in
recommending TPMs include the client’s stated investment objective(s), management style, performance,
reputation, financial strength, reporting, pricing, and research. The investment management fees charged
by the designated TPM and corresponding designated custodian of the client’s assets may be exclusive of,
and in addition to, Maddix Wealth’s investment advisory fee set forth in Item 5 below. In addition to this
Disclosure Brochure, the client will also receive the written disclosure statement of the designated TPM(s).
Certain TPMs may impose more restrictive account requirements and varying billing practices than
Axxcess. In such instances, Maddix Wealth may alter its corresponding account requirements and/or
billing practices to accommodate those of the TMP(s). Financial Planning Services.
Should a client decide to implement any recommendations contained in a financial plan prepared by
Maddix Wealth, the client may but is under no obligation to utilize Maddix Wealth to implement those
recommendations, and there is no assurance that Maddix Wealth’s financial planning services or any
products recommended by a financial plan are at the lowest available cost. Clients should be aware that if
the client implements the financial plan through Maddix Wealth, Maddix Wealth may receive an additional
payment from the client in the form of advisory fees. This would act as an incentive to Maddix Wealth to
make certain recommendations in the financial plan or to advise the client to instruct Maddix Wealth to
implement the plan.
Termination of Advisory Services
Maddix Wealth and its clients may terminate advisory and other related services by written notice for any
reason, and such termination is effective upon the date specified in the notice. Maddix Wealth will be
entitled to a pro-rata portion of its fee, based upon the number of months of representation until the
date of termination.
Assets Under Management
Regulatory Assets Under Management.
As of December 31, 20223, the Firm had approximately $153,714,979 in regulatory assets under
management of which approximately $149,840,587is discretionary and approximately $3,874,392 is
non-discretionary.