First Republic Hires $4.6-Mln Morgan Stanley Team in NYC
First Republic Bank’s private wealth unit underscored its veteran broker recruiting ambitions on Friday with the hire of a Morgan Stanley team in New York City that was generating $4.6 million in annual revenue.
The team is the fourth to join First Republic this year, after eight moved there in 2020. The bank has been offering high-end deals to advisors and earlier this year dangled an enhanced finder’s fee to recruiters for teams with $2 million or more in revenue who joined prior to April 1.
“You’re seeing great reverse inquiry coming in and referrals from our existing wealth managers as well,” the bank’s president, Hafize Gaye Erkan, said in discussing its “continued momentum” in recruiting on the company’s earnings call last week.
First Republic, which has around 200 advisors (titled as wealth managers on its website), credited the growth and “strong referrals” between its bank and brokerage unit with helping to lift assets under management 58.8% year-over-year. The private wealth business had $218.9 billion in client assets at the end of the first quarter.
The wealth division generated $159.6 million in revenue in the first three months of 2021, up 18.7% year-over-year, and accounted for 14.1% of the bank’s total revenue in the first quarter.
Wentzheimer, a 19-year broker, did not return a call for comment about his move at his new Avenue of the Americas branch. He joined UBS Wealth Management in 2002 after a rookie year at AXA Advisors and moved to Morgan Stanley in 2010, according to BrokerCheck.
Horowitz, a 29-year industry veteran, worked at six firms in 19 years before joining Morgan Stanley in 2010 from Wells Fargo Advisors. Rozenberg, Yeung and Komuda began their careers at Morgan Stanley in 2012, 2014 and 2019, respectively. Rozenberg specializes in helping company executives craft 10b5-1 plans to sell large corporate stock holdings without violating securities laws, according to a release from First Republic.
A spokeswoman for Morgan Stanley confirmed the departure but declined to comment on the defecting team’s assets or production.
Morgan Stanley, which has around 16,000 advisors, has been an aggressive recruiter itself as its executives have focused on maintaining a net recruiting number near zero. As of the first quarter, however, the wirehouse no longer breaks out the number of advisors in its wealth business, which now includes several hundred call-center based advisors with E*Trade Financial as well as its core advisor-led force.