Morgan Stanley Hires Multi-Million UBS Stock Plan Team in Houston
Morgan Stanley on Friday landed a four-advisor team from UBS Wealth Management USA team in Houston that was producing $6.5 million in annual revenue, according to two sources familiar with the move.
Allan J. Klenke, Gregory Owen Klenke, Mark A. Kaye and Timothy L. O’Connor specialize in advising wealthy clients on their corporate stock and options positions, and were managing about $1 billion of assets for themselves and clients of some colleagues, the sources said. A third source with direct knowledge of their business said their revenue at UBS was $5.1 million.
Two former members of their team who were producing about $4 million annually, Jeff Parker and Rafael Herrera, jumped to another Morgan Stanley branch in Houston last September. At least three advisors on the Klenke team remain with UBS, according to one source.
The hires underscore Morgan Stanley’s growing emphasis on sourcing new client assets by advising employees and executives on their workplace plans. The firm’s 2019 purchase of Solium Capital and its pending acquisition of E*Trade Financial aim to exploit the workplace strategy, even as the wirehouse narrows the number of brokers across its wealth management franchise it allows to specialize in servicing corporate executives.
The Klenke team, which operated as the Signature Wealth group at UBS, is among the limited number of advisors Morgan Stanley is allowing to work outside of its Solium-expanded Shareworks program on corporate stock management.
The Klenke brothers could not immediately be reached for comment on their move. Allan had been with UBS for his entire 28-year career, and Gregory for all of his 24-year career. Kaye and O’Connor joined UBS in 2012 and 2013, respectively, according to their BrokerCheck records.
The team is based at Morgan Stanley’s Texas Avenue branch in Houston managed by Tige Soderberg. Parker and Herrera joined the wirehouse’s Travis Street private wealth office managed by Michael Wesbrooks. The teams will not be merging their practices, said an external source who claimed familiarity with their situations.