Searching for a “transformational business model,”
Bank of America Merrill Lynch private banking vets Paul A. Pagnato and David W. Karp have joined HighTower Advisors LLC.
The pair, who do business as the Pagnato-Karp Group, joined HighTower as managing directors and partners last Friday. Both men were previously private wealth advisers at Merrill Lynch Private Banking and Investment Group where they managed $1.3 billion in client assets.
Mr. Pagnato's career with Merrill Lynch goes back to 1992, while Mr. Karp had been with the firm since 1997. They are based in the Washington, D.C., area.
The group's specialty is family office solutions for entrepreneurs, particularly legal and tax planning for those clients. “We help manage every aspect of our clients' financial well-being, from paying bills on a regular basis to cash flow management, to making sure that their properties and entities are running properly,” Mr. Karp said.
The Pagnato-Karp Group is the fourth team from
Bank of America Merrill Lynch to join HighTower this year, and the first to hail from the Private Banking and Investment Group, said Mike Papedis, managing director for national business development.
Their addition doesn't mark a change in recruitment strategies for the firm, he said. “We're always focused on teams that serve the ultrawealthy,” he said. Just last month, the firm added an Indian Wells, Calif.-based trio of advisers from Morgan Stanley Smith Barney LLC.
Mr. Pagnato noted that HighTower's “transformational business model” attracted the group to the firm, particularly since clients will be able to place their assets in custody with a variety of firms.
“Previously, they didn't have a choice,” he said. “This really provides them a comfort level for the safety of their assets, plus choice and transparency. We're able to do everything we were able to do before and more.”
Prior to landing at HighTower, Mr. Pagnato and Mr. Karp had looked at other opportunities, including joining another wirehouse or opening their own registered investment advisory firm. HighTower's scale and culture proved the most attractive option. “You can almost think of it as a family office on steroids,” Mr. Pagnato said.
Selena Morris, a spokeswoman for BofA Merrill Lynch, declined to comment on the departures.
