Greg Fleming, Rockefeller Capital spending big on recruits

Firm is offering advisers upwards of three times prior year's revenue to move

May 21, 2019 @ 3:05 pm

By Bruce Kelly

Greg Fleming's Rockefeller Capital Management is making a splash in the market to recruit veteran wirehouse financial advisers, offering lucrative recruiting deals that could equal three times or more of advisers' annual production.

Industry executives and recruiters said the private wealth management arm of Rockefeller Capital is offering 300% signing bonuses, and in certain cases more, of advisers' prior 12 months' revenue, known as the trailing 12 in industry parlance.

"What I'm hearing from advisers is that the Rockefeller deal is as competitive as the biggest deals anywhere else," said Casey Knight, executive vice president and managing director at ESP Financial Search, a recruiting firm.

"And it's probably going to exceed 300% for the kind of advisers they are looking for, typically from a wirehouse and typically large teams, with a minimum of $3 million to $4 million in [annual] production."

The bonuses are structured as forgivable loans that run as long as 12 years, sources said, which is up to three years longer than typical recruiting packages. Extending the length of time of the loans could likely act as a way to tie advisers to Rockefeller, executives and recruiters said.

Formerly the president of Morgan Stanley wealth and asset management and president of Merrill Lynch, Mr. Fleming is president and CEO of Rockefeller Capital, which was created last year after hedge fund Viking Global Investors bought a majority stake in Rockefeller & Co. Minority ownership is shared by the management team and the Rockefeller family.

Last March, when its acquisition was completed, the company said that the new ownership group anticipated "making substantial additional capital investments" to execute its strategy and speed up growth.

A spokeswoman for Rockefeller Capital, Erin Clark, declined to comment when asked about the recruiting package.

According to industry executives and recruiters, Rockefeller Capital's recruiting deal is designed to be flexible and focus on the growth of advisers' practices. In other words, the deal comes with targets. The more the team of advisers increases its revenues over a prescribed period, the larger the potential bonus.

Rockefeller is getting results. Seven wealth management teams have joined since September, and on Monday the company said it hired two veteran UBS advisers in San Francisco — Bruce Tenenbaum and Andy Lam. The company did not state the amount of assets those two advisers manage.

Mr. Fleming's aggressive recruiting efforts comes at a time when the large wirehouses are pulling back from recruiting. Two, Morgan Stanley and UBS, pulled out of the broker protocol agreement in late 2017, which makes it easier for advisers to leave one employer for another.

0
Comments

What do you think?

View comments

Most watched

INTV

Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

INTV

Young professionals see lots of opportunity to reinvent the advice experience

Members of the 2019 InvestmentNews class of 40 Under 40 have strategies to overcome the challenges of being young in a mature industry.

Latest news & opinion

New Jersey fiduciary rule: Pressure leads to public hearing, comment deadline extension

Industry push results in chance to air grievances on July 17 and another month to present objections.

InvestmentNews' 2019 class of 40 Under 40

Our 40 Under 40 project, now in its sixth year, highlights young talent in the financial advice industry. These individuals illustrate the tremendous potential of those coming up in the profession. These stories will surprise, entertain, educate and inspire.

Galvin to propose fiduciary rule for Massachusetts brokers

The secretary of the commonwealth is proposing a fiduciary standard in response to an SEC investment-advice rule he views as too weak.

Summer reading recommendations from financial advisers

Here are some books that will keep you informed and entertained during summer's downtime

4 strategies for Roth conversions

There's never been a better time to do a Roth conversion, and here are several ways to go about it.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print