UBS Group AG is reorganizing its global wealth management arm in the first major move by its new leaders Rob Karofsky and Iqbal Khan, pursuing its long-standing aim of bringing more investment services to its ultra-rich client base.
As part of the move, UBS will create a new unit — dubbed GWM Solutions — that will bring various wealth offerings under one roof, according to a memo seen by Bloomberg News.
Former Credit Suisse wealth banker Yves-Alain Sommerhalder will lead the unit, which includes offerings such as investment management, lending, family and institutional wealth and alternative investments, the memo said.
As part of the push, Michael Camacho is joining UBS, the memo said. The JPMorgan Chase & Co. veteran will lead wealth management in the US and will start in September.
The organizational changes come about a month since UBS announced a new leadership structure. In May, investment bank head Karofsky was appointed to run its US business and jointly oversee wealth with Khan, who was the sole head previously. Khan will relocate to Asia and was also made president of the Asia-Pacific region.
Both bankers, who are seen as potential successors to Chief Executive Officer Sergio Ermotti, are stepping into new territory to expand their knowledge of the overall firm. Khan has spent most of his career in wealth management, while Karofsky has a markets background.
UBS is rapidly progressing with the integration of Credit Suisse, which it took over last year in a Swiss government-orchestrated rescue. Part of that includes building up in the US.
The lender also decided to make Latin America a new business unit led by Marcello Chilov, “recognizing its significantly increased size and potential.”
Late last year, activist investor Cevian Capital AB took a stake in UBS, betting the bank can use the takeover of Credit Suisse to double its share price and secure its spot as the number one global wealth manager.
UBS is looking to the new unit to give fresh momentum to a model both UBS and Credit Suisse have long pursued: Connecting their client base of wealthy families and individuals, often entrepreneurs or company owners, with investment banking advice and asset management.
Sommerhalder, a Credit Suisse veteran, will work out of New York and Zurich, steering a business that “will bring all client solutions into a single construct,” according to the memo.
UBS is launching a new “division-agnostic” Global Alternatives business to deepen its ties with limited partners across the globe “to capture higher returns and diversify their portfolios.” The unit will combine the shelf of alternative single and multi asset managers of the bank’s wealth business and asset management.
The unified global banking unit will be led by Jason Hutchings with the goal to originate more wealth clients looking for investment banking advice, such as entrepreneurs selling their companies. It will report into Sommerhalder and Javier Oficialdegui, the bank’s global investment banking head.
More Changes:
Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.
The $36 million buy allegedly hid inflated books and a $50 million diversion.
“An award citing emotional distress is very unusual,” an industry executive said.
New EBRI research found workers who participated in employer financial education reported higher confidence, literacy and financial satisfaction.
Beyond operational excellence, the winning advisors of the future are the ones who can reach across multiple disciplines without discarding specialist skills.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
