Rockefeller On A Roll – Lands Two More Teams

Rockefeller Capital Management acquires The Sargent Team from Morgan Stanley in New York. John Sargent and team produced a trailing $5 million, managing assets of $1.5 billion. Sargent was responsible for the launch of the highly successful “Weekend Journal” at Wall Street Journal publications.

In their other acquisition, Rockefeller bought on a $3.5M team that managed $500M in assets in Conshohocken PA – Harvey, Seese & Associates from Merrill Lynch. Jeffrey Harvey was elected Forbes “Best-in-State Wealth Advisors” from 2018 through 2020 and Sean Seese was Forbes “America’s Top Next-Generation Wealth Advisor” in 2017-2018 and then Forbes “Best-in-State Next-Generation Wealth Advisor” in 2019.

With an anchor investment from the Rockefeller Family and $550M from Viking Capital, together, they have launched an open architecture national PWM platform, with very sophisticated Family Offices Services, Global Traditional and Alternative Investment Management Solutions, and Investment Banking Capabilities. They intend to acquire some of the most reputable and largest 250 advisor/teams nationally offering top dollar economic packages.

Need to make a move? We make it easier, faster, and guarantee a bigger transition package. Contact us for more information.

RBC Poaches 3 High Caliber Teams In The Last Few Weeks

Another sign that moves in the turbulent coronavirus era are rare, but possible…

Just this month, RBC Wealth Management-U.S. hired a five-broker team that had been managing $688M in assets at Wells Fargo. The team – Gregory Fuerst, John Welsch, Michael Korb, Carl Helleberg Barbara Frenz, including two client associates, Beverly Hebenstreich and Kristan Janssen, moved to RBC’s Fon Du Lac office in Wisconsin.

In February, RBC acquired two wirehouse teams, hiring a $426M asset team from Merrill Lynch and $1M producer from Wells Fargo Advisors. Daniel Gounaris and Daniel Bachmann (including two client associates) joined the Baltimore, Maryland branch.

In just the same month, a sixteen-person team that had been managing $1.8B in client assets in Merrill Lynch’s Green Bay, Wisconsin branch also jumped ship to RBC. The team, led by Mike Busick, is now RBC’s largest Wisconsin team (by people and potential AUM). Busick’s team members include Robert D. Cummings, Richard E. Vezina and David J. Tilkens. Their practice produced $12M in annual revenue in Merrill’s small-market communities “region.”

Need to make a move? We make it easier, faster, and guarantee a bigger transition package. Contact us for more information.

 

Rockefeller Acquires A Large $11M Stifel Team

Rockefeller Capital Management added a seven-person private wealth management team in New York City that produced between $11M over the past year and oversaw about $2 billion of assets at Stifel Nicolaus. The team is led by Ed Moldaver. Moldaver’s senior partner, James J. “Jimmy” Lee were among the top producers at St. Louis-based Stifel.

The team is the 12th to join Rockefeller Capital’s private wealth group this year, and bring its total number of financial advisors to just over 50 in offices in New York, Atlanta, San Francisco, Los Angeles and suburban Philadelphia.

With an anchor investment from the Rockefeller Family and $550M from Viking Capital, together, they have launched an open architecture national PWM platform, with very sophisticated Family Offices Services, Global Traditional and Alternative Investment Management Solutions, and Investment Banking Capabilities. They intend to acquire some of the most reputable and largest 250 advisor/teams nationally offering top dollar economic packages.

How much is your practice worth? We make it easier, faster, and guarantee a bigger transition package. Contact us for more information.

Amidst Pandemic Chaos Big Teams Accelerate Moves To New Firms; We Tell You Why

If it seems like larger and more frequent recruiting headlines keep hitting the tape, you are viewing the wealth management landscape correctly. Each and every week hundreds of millions, if not billions, in client assets are filling out asset transfer paperwork on Saturday and Sunday across the country. And there is no slow down in sight.

The wirehouses continue to be hit hardest as advisors are either opting for perceived greener pastures at a rival firm, or setting up their own shop as masters of their inside an RIA aggregator of note. The mass exodus remains real and ongoing, no matter what firm brass at places like UBS and B of A/Merrill Lynch would have you believe.

But we are more interested in why these moves are occurring now…and accelerating in the midst of COVID-19 and historic market volatility. We think the following four dynamics are fueling the recruiting market and have tipped the scales in the question.

1. Practice valuations and client balances (AUM) are at historic highs. The thought process here is that with client balances at or near all-time highs, annual production levels, along with the stock market, are bloated in ways the industry has never seen before. T12 numbers and their multipliers are extremely ripe and perfectly situated to capitalize on the next dynamic in this list. Advisors would be well advised to take advantage of the gift that the markets have given them.

2. Recruiting deals are at all-time highs and almost artificially out-sized for big teams. The competition for teams of scale is as fierce as it has ever been, and deals reflect that competition. At both Wells Fargo and First Republic, when including deferred compensation balances and choosing to retire at those firms, the numbers can surpass 500%. Yes, you read that right. Deals are more apt to retreat from these levels than to press much higher – another reason why big teams are hitting the bid.

3. Expired deals. Every advisor and team that mattered during the financial crisis has had the deals they signed back in 2010 (either to stay at their firm or in a move to a new firm) expire. Everyone is a free agent and evaluating the best way to play out the rest of their career – both philosophically and by way of monetizing their book. Besides the two firms that exited protocol in UBS and Morgan Stanley, most advisors are completely legally detached from their current firm.

4. The COVID-19 effect is real and a significant advantage for transitioning to a new firm. At the outset of the pandemic most thought that the chaos and market turbulence would stifle recruiting movement. Just the opposite has been true. Clients that have stayed home from work are more available to discuss moves and sign transition paperwork virtually; while advisors deal with fewer colleagues attempting to keep their clients at the firm they are leaving. In terms of the drama of the first weeks of a transition, COVID-19 has become an easy off ramp for exiting advisors.

Doing a serious evaluation of the tent that you find yourself under as an advisor is an absolute must right now. With so many deals stretching beyond 300% and production and asset levels at historic highs, big teams will continue to leave. Considering the factors above and the cover for a transition, you should be doing your own evaluation right now.

Need to make a move? We make it easier, faster, and guarantee a bigger transition package. Contact us for more information.

UBS Comp Changes Shock: ‘Biggest Grid Stretch I’ve Ever Seen’

UBS thinks it’s a good idea to play with fire. That’s the best explanation we can come up with when evaluating the 2020 comp changes that have been leaked. In this sense, playing with fire is a catchy way of saying they feel comfortable going to war with their own advisors.

The changes that are set to be announced (or maybe there won’t be if the backlash is as visceral as we think it will be) antagonizes every size of advisor and advisor team. No one seems to be spared.

For the life of us we can’t figure out why UBS is choosing to ignore the first rule of dealing with any wealth management biggest producers – first, do no harm. Nope. They’ve decided they want to double down on advisor losses that have somewhat defined the firm in 2019.

A few details regarding the specific changes:

“The 2020 compensation changes, expected to be announced to the firm’s more than 6,000 U.S. brokers on Tuesday, will raise hurdles from the bottom to the top of UBS ranks, with particularly steep rises for mid-level and top producers.”

“Brokers who this year retain 39%, 42%, 49%, and 50% of what they raise from customers will have to produce $200,000 more in the new plan to hit the comparable 2020 production bands, according to summaries of the plan reviewed by AdvisorHub.”

So if you are reasonably proficient at math, that looks like anywhere from a 10-30% increase in grid expectations just to receive the same % payout. Every UBS advisor is getting a kick in the crotch as a holiday gift.

And if you think that larger teams are better off, think again…

“In addition to raising the bar for individual brokers, UBS Wealth Management Americas is raising requirements for team payouts. Teams must generate a combined $6 million and have average FA production of $1.2 million to qualify for the “combined” grid payout of at least 48% to all members. That’s up from a team production minimum of $5 million and average FA production of $1 million in the 2019 plan.”

You can expect advisors and local management to be righteously indignant about these changes. And you can also expect UBS advisors to spend more time on the phone with recruiters in the next 3 months.

Seriously, who made this decision? It feels reckless given that UBS lost nearly 5% of its advisor force to competitors in 2019. Expect more commentary and fallout in the coming days and weeks.

 

 

Need to make a move? We make it easier, faster, and guarantee a bigger transition package. Contact us for more information.