Stifel set to absorb 350 UBS reps, add new recruits

Having already added nearly 300 financial advisers in the first six months of the year, Stifel Financial Corp. is now poised to add another 350 new advisers — at least — in the second half of 2009.
AUG 14, 2009
By  Bloomberg
Having already added nearly 300 financial advisers in the first six months of the year, Stifel Financial Corp. is now poised to add another 350 new advisers — at least — in the second half of 2009. Over the next six weeks, Stifel Financial Corp will add roughly 350 new advisers from the 56 branches of Zurich, Switzerland-based UBS AG’s Wealth Management Americas unit. Stifel acquired the unit in March for more than $46 million. The integration process began this week and will be completed by the end of September, said chairman and chief executive Ronald Kruszewski. “We like four to five man offices in smaller cities,” he said. “We make money on them, and I’m expecting great things.” Integrating such a large group of advisers into a new firm is always a concern, said Steve Stelmach, a vice president for Arlington, Va.-based FBR Capital Markets. But he noted that St. Louis-based Stifel’s successful acquisition two years ago of Ryan Beck & Co. Inc., a brokerage firm based in Livingston, N.J., could be considered a “dry run” for the UBS migration. “That went well and you have the same management,” Mr. Stelmach said. Integrating the former UBS advisers will be Stifel’s priority for the rest of the year, Mr. Kruszewski said. The firm will continue its recruiting efforts during this time, although it will be on a “selective” basis, he added. Stifel has hired 291 advisers since January and 384 since June 30, 2008, for a total of 1,562 advisers as of the end of June. On June 30, 2008, the firm had 1,178 advisers in total. At the end of 2004, the firm had 621 advisers. Stifel’s recruiting is a prime example of the hiring frenzy among regional brokerage firms, who are bulking up on advisers primarily at the expense of their wirehouse rivals. Stifel’s hiring binge appears to be a calculated bet, Mr. Stelmach observed. “If the market rolls over in 2010, they will have gotten ahead of themselves,” he observed. “But if the market stabilizes or improves, they should get a very good return on their investment.”

Latest News

Trump ‘Crypto Week’ advances as house conservatives end blockade
Trump ‘Crypto Week’ advances as house conservatives end blockade

Hardliners give way to pressure to approve consideration of bills.

Middle-income households under pressure as finances are squeezed
Middle-income households under pressure as finances are squeezed

Financial resilience is at risk as cost of living strains budgets.

DeVoe: Record-breaking RIA M&A run led by private equity's consolidator comeback
DeVoe: Record-breaking RIA M&A run led by private equity's consolidator comeback

A drop in interest rates and easier access to capital has reignited appetite among private equity-backed consolidators, who accounted for 53% of RIA deals so far this year- their highest share since 2021 according to DeVoe & Company.

Fintech bytes: Advisor360, Nitrogen unveil AI updates for advisor productivity
Fintech bytes: Advisor360, Nitrogen unveil AI updates for advisor productivity

Also, Advisor CRM announces a new data integration partnership to ease the pain of client onboarding.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.