Superstar advisers with $17 billion in AUM bolt from First Republic

Superstar advisers with $17 billion in AUM bolt from First Republic
The four advisers are setting up two separate RIAs.
JUN 03, 2019

A team of All-Star financial advisers who manage $17 billion in assets for wealthy clients has bolted from First Republic Bank's elite wealth management group to set up two RIAs in California. The advisers — David Hou, Mark Sear, Robert Skinner and Alan Zafran — left First Republic Investment Management Inc. on Friday, according to regulatory filings, industry reports and an individual familiar with their move who asked not to be identified. Mr. Hou and Mr. Sear are owners of a new RIA, Evoke Wealth, that's based in Santa Monica. According to its Form ADV, Evoke Wealth has a staff of 20. Meanwhile, Mr. Skinner and Mr. Zafran are opening an RIA in Monterey called IEQ Capital. Neither firm returned calls for comment on Monday. A spokesman for First Republic, Greg Berardi, declined to comment. The four advisers have a unique history of breaking away from employers, setting up their own shops and then selling their practice. In June 2008, Mr. Hou and Mr. Sear made headlines as the leaders of a group of advisers in charge of $7 billion that left Merrill Lynch to set up their own RIA, Luminous Capital Holdings. Mr. Skinner and Mr. Zafran also left Merrill at that time and were also founders of Luminous Capital. Four years later, at the end of 2012, First Republic bought Luminous Capital, which had $5.5 billion in assets by then. The amount of the transaction was not disclosed at the time. An industry website, RIABiz, originally reported the news of the four advisers leaving First Republic. The bank has been aggressively recruiting financial advisers since at least the start of 2017.

Latest News

Fintech bytes: Envestnet reaffirms $1B RIA commitment with Tamarac tech investment
Fintech bytes: Envestnet reaffirms $1B RIA commitment with Tamarac tech investment

Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.

RIA moves: Maridea acquires multigenerational practice in Pennsylvania debut
RIA moves: Maridea acquires multigenerational practice in Pennsylvania debut

Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.

Private equity eyes 401(k) plans, but fees remain a hurdle
Private equity eyes 401(k) plans, but fees remain a hurdle

Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.

IRS floats proposal ending tax breaks for schools that weigh race
IRS floats proposal ending tax breaks for schools that weigh race

Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.

Trust over tech:  The hidden signal of stock success in the AI era
Trust over tech: The hidden signal of stock success in the AI era

Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

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