Goldman Sachs Group Inc. planned a hiring spree to ramp up the fees it gets from advising the wealthy. It got a reminder this week that it’s not alone.
Teams of advisers overseeing $10 billion in assets are leaving for rivals. A group headed by Denis Cleary and Gregory Devine with $6 billion in assets under management will move to UBS Group. Brian Zakrocki and Joe Wladyka, who helped manage about $4 billion, are leaving Goldman for First Republic, according to people with knowledge of the matter, who asked not to be identified discussing personnel matters.
Goldman has about $560 billion in wealth management assets under supervision, most of it catering to the ultra high-net-worth crowd. Under Chief Executive David Solomon, the firm known for trading and deal-making is heaping new focus on managing money for the wealthy.
It’s trying to do this as the world’s largest banks also vie for a greater share of the wealth created during the decade-long bull market. Wealth management units of nine of the biggest firms surpassed $100 billion in combined revenue for a third straight year in 2019. That’s driving intense competition among banks and boutiques for advisers who can bring billions of dollars in client assets.
Intense competition
“We have built an amazing private-wealth management business that today is the crown jewel in our wealth management franchise,” Eric Lane, Goldman’s investment management head, said at the bank’s investor day last month. “So how are we going to grow? First, we need to add more advisers.”
Mr. Lane said he thought Goldman could add 250 advisers over the next three years — a 30% increase from its current figure.
Wealth managers moving shop is far from rare, but departures from units that Goldman is leaning on for growth have been under the spotlight in recent weeks after high-profile exits in the technology and merchant banking groups.
Mr. Cleary and Mr. Devine’s team will maintain offices in Boston and Los Angeles, UBS said Tuesday in a statement. The group has clients in more than 25 U.S. states.
“Known for being one of the largest teams in the country under the age of 50, we’re proud to have them on board here at UBS to bring a differentiated view for our clients,” said John Mathews, UBS’s head of ultra high-net-worth Americas and private wealth management.
Spokespeople for Goldman and First Republic declined to comment on Mr. Zakrocki and Mr. Wladyka’s move.
UBS said last month that Wickham Cash Partners, which oversaw about $10.8 billion, joined its Charlotte, N.C., wealth management office. The group was previously part of Merrill Lynch.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
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.