Cresset Hires J.P. Morgan Private Banking Team in Mile High City
(Updated to reflect company’s comment when the team officially joined that they had been managing $2 billion at J.P. Morgan)
A four-person J.P. Morgan Private Bank team in Denver has resigned to join Cresset Asset Management, according to a source with knowledge of the move.
The group of four bankers, led by Kevin E. McGuire, an 18-year industry veteran who had served as managing director and head of the private bank’s Colorado Technology Vertical and Boulder Team, gave notice on Monday, according to the source.
McGuire, as a managing director, has a 90-day garden leave and will join September 13, according to the Cresset spokesman. He will be joined by Sarah Burney and Jake Schwinn, who will start on August 13, and Dan Biondi, starting on July 14.
A fifth team member, Vanessa Ramich, who had left J.P. Morgan in 2019, will join the group at Cresset from “another family office” on July 12, the Cresset spokesman confirmed. All the hires are joining as “wealth advisors,” the spokesman said.
The exit this week follows at least nine other exits of large J.P. Morgan Private Bank teams since October 2020, eight of which went to UBS.
A J.P. Morgan spokeswoman declined to confirm the exits, but noted that J.P. Morgan plans to double its advisor headcount with 1,500 new advisors who will be added both through training and recruiting from the competition. The firm has hired 100 private bankers so far this year, she said.
“At J.P. Morgan Private Bank we are always hiring new, dynamic talent,” the spokeswoman said in an emailed statement.
David Frame, the private bank’s CEO, has said the UBS-bound departures were in line with normal levels of attrition for the division, but declined to specify how many advisors usually leave in a year, according to a “Business Insider” report.
“Advisors in this business can get paid to basically sell their revenue stream and move to another place,” Frame told the publication. “This industry will always have attrition, and it’ll always have people moving.”
Recruiters have said that salaried private bankers can be alluring targets but that they often leave behind a majority of assets when they move given restrictive garden leaves and customers’ deep ties to the bank.
None of the Monday movers to Cresset returned a request for comment.
McGuire joined J.P. Morgan in Denver in September 2009 after a four-year stint with the now-defunct Bernard L. Madoff Investment Services in New York City, according to his BrokerCheck profile. The report lists no ‘disclosure’ events on his record. Bernie Madoff, head of the namesake firm, whose $19 billion Ponzi scheme unraveled amid the 2008 financial crisis, leading to his criminal conviction and sentencing to 150 years in prison, died in April at age 82.
McGuire had worked as a portfolio manager/equity analyst at Madoff’s firm, which is referred to only as “Private family office” on his LinkedIn profile. He had managed “a long-short, telecom/media/technology-focused equity portfolio and co-managed a capital structure portfolio” at the firm, according to the profile.
McGuire started in the finance industry as an equity research analyst covering technology firms for Thomas Weisel Partners in San Francisco from 1999 to 2002, and also worked at Citigroup in New York City, from 2004 to 2005, according to his BrokerCheck and LinkedIn profiles.
Burney and Schwinn had spent their entire brokerage careers with J.P. Morgan, where they were both executive directors, according to their BrokerCheck and LinkedIn profiles. Burney joined the firm in 2007 from Morgan Stanley, where she had worked two years as an analyst, her LinkedIn profile said. Schwinn joined in 2009 after a year-long stint as an investment associate with Northern Trust, his LinkedIn profile said.
Biondi had started his brokerage career with J.P. Morgan in 2015, his BrokerCheck said.
Ramich had been an executive director at J.P. Morgan from 2013 to 2019, according to her BrokerCheck and LinkedIn profile. She has been managing director of a “private family office” since July 2019, according to her LinkedIn.
Cresset, which was founded in 2017, has some history with the bank, as its co-chairman Doug Regan previously worked as a Midwest region head and managing director at J.P. Morgan Private Bank.
Overall, the RIA has $13.3 billion in customer assets, according to its website. It is a member of the Protocol for Broker Recruiting, the industry pact that allows brokers to leave with customer contact information, although J.P. Morgan specifically excludes its private bankers from the agreement’s legal protections.
In February, Cresset hired from Goldman Sachs a private wealth advisor overseeing about $500 million in client assets in Houston to open a Texas office for the firm.