Interview: Scott Kavanaugh of First Foundation Inc.

In youth, the businessmen of the future would gaze with admiration at their fathers, clad in strict business suits, briefcase in hand, the physical embodiment of success, and dream of the day when they, too, would walk with the brazen air of accomplishment. How many of those men grew to be the idolized epitome of success? The answer is few– but one San Diego businessman, Scott Kavanaugh, is the apotheosis of such ascension. 

As head of First Foundation, Inc. Kavanaugh’s knowledge of and experience in the complex world of banking is absolutely unparalleled. Not only does Kavanaugh lead First Foundation Bank, he also oversees First Foundation Advisors, a true anomaly in the world of banking as one of the few successful RIA (registered investment advisors) associated with a bank. Not only is Kavanaugh a successful businessman himself, his expertise guides others to similar successes. With grace and confidence, Kavanaugh pilots one of San Diego’s most stable financial institutions.

Naturally, we wanted the scoop: how did he become so successful, in San Diego no less, a town renowned for its lack of business clout? When we asked, Kavanaugh answered, and we couldn’t wait to share with you. For all of you still aspiring to be like those businessmen of old, read on:

Emily Glaser: What originally drew you to San Diego?

Scott Kavanaugh: Since we formed the firm, we always had plans to offer our wealth management and banking solutions in San Diego. We have been working with clients in San Diego since our inception. We officially opened our office in 2011 and are humbled at the tremendous support we have received. The business community, as well as the philanthropic community, have validated that our comprehensive wealth management platform is of value to them. 

It was important that we built a team of professionals that knew the local market and were well respected. A large portion of our new business is coming from San Diego, yet we also feel we have just gotten started.

What is attractive about doing business in San Diego, especially given San Diego’s negative reputation regarding business? 

San Diego might have a negative reputation towards business in the mainstream media, but we actually see things a little differently. Even though we seemingly hear frequent stories of firms and professional athletes packing up and leaving town, from our perspective, San Diego represents the need to utilize solutions like the ones we provide. For instance, those living and working in San Diego need a professional to help them plan their wealth so they can preserve the San Diego lifestyle for themselves as well as future generations. They also need a banker who has the expertise and knows the local market to help finance their next business deal or real estate transaction. We provide all of these solutions for our clients and deliver them with an emphasis on the personal touch that is consistent with the way San Diegans want to do business.

So what are some of the unique needs of San Diego’s residents from the perspective of a businessman?

There are a few idiosyncrasies of doing business in San Diego, many of which stem from the different geographies and neighborhoods within San Diego.  But from a business perspective, it is clear that many high–net–worth individuals have an interest in real estate as an investment vehicle. We see a high number of banking activities related to real estate in San Diego and our investment professionals are managing real estate as an asset class for most of our San Diego–based clients.

Also, there is a class of successful business men and women in San Diego that have impressive track records, yet they are still finding time to enjoy all that San Diego has to offer. These people have truly embraced the work–life balance and unlike many of their East coast counterparts, they have a healthy balance between being successful in business and being successful in health. For instance, many of our clients in San Diego are known to be making high–powered decisions in business suits in the morning and surfing in wetsuits at sunset.

Additionally, there is a thriving non–profit community in San Diego. We respect this and that is why San Diego has been an integral part of our Supporting Our Communities philanthropic initiative. 

All great reasons for why we love San Diego! If you could give one piece of advice to aspiring businessmen and women in San Diego, what would it be?

It is important to understand that many people want to do business in San Diego simply from a lifestyle standpoint and from that viewpoint, what’s not to like? That said, there is a thriving community of business executives, doctors, lawyers, accountants, engineers, philanthropists and athletes that need sophisticated, high–powered solutions for their personal finances. If you are coming to San Diego to only work on your golf game you might reconsider.  This a town full of bright, motivated and successful individuals who require dedicated support from their professional advisors.

Like you said, it’s all about balance. What do you expect in your future in San Diego?

We believe we have only just begun in San Diego. Our clients in San Diego have been a pleasure to serve and we are being introduced to new opportunities everyday.  As we grow, we will continue to add experts in banking, trust and wealth management to support our clients. The old adage of work hard and do right by our clients is working.