There and Back Again: $6.7-Mln Morgan Stanley Team Retraces Steps to UBS
It’s Déjà vu all over again for a high-producing wirehouse team in Pennsylvania and New Jersey that last week made the Morgan Stanley-to-UBS leap for a second time.
Daniel Silverberg, Rick Hughes, and Shawn Senior had each worked at Morgan Stanley in the early 2000s before switching to UBS in 2005 and 2006 and then rejoining Morgan Stanley in 2012, according to their BrokerCheck records. They joined UBS on July 22 in Philadelphia and Mount Laurel, according to their BrokerCheck records.
Their team, which is called HSS Partners, had managed $1.9 billion and generated $6.7 million in annual production, according to the source. A fourth member of the team, Joseph Cirucci, started his career at UBS in Mount Laurel 2011, according to BrokerCheck.
Silverberg and Hughes, who are part of UBS’s private wealth unit serving ultra-wealthy customers, report to Northeast Market Head Julie Fox while Senior and Cirucci are part of the traditional brokerage business and report to New Jersey market head Ted Durkin. The group has a minimum account size of $5 million, according to Forbes, which ranked Silverberg as #51 in New Jersey this year.
Career “churn” among brokers has become more commonplace as firms confront an aging workforce and difficulty adding the next generation of brokers through training, said Philip Waxelbaum, an industry recruiter in Arizona who was not familiar with the HSS team move. The back-and-forth of the HSS team, however, was particularly unusual.
“There was a time in the industry that when you were gone, you were gone,” Waxelbaum said. “It’s a clear commentary about the lack of high performance advisors and the relative demand for them.”
Brokers also are incentivized to transfer firms to capture bonus offers that typically carry forgivable notes lasting nine to twelve years, according to headhunters.
Reached at his Philadelphia office, Silverberg declined to comment. He along with the two other senior members and a fourth broker who since retired, had generated $6 million in revenue on around $800 million in client assets at the time of their first sojourn from UBS to Morgan Stanley, according to a Reuters report in 2012.
Silverberg started his career at Bear, Stearns & Co. in 1987, and also worked at Morgan Stanley predecessors E.F. Hutton and Lehman Brothers before joining UBS predecessor Painewebber Inc. in 1992. He shifted to Legg Mason in 1996, joined Morgan Stanley in 2000 and then UBS in 2005 according to BrokerCheck.
Hughes started at L.C. Wegard & Co. in 1982 and worked at Merrill Lynch for nine years before joining Morgan Stanley in 2002 and then UBS in 2006, according to BrokerCheck. Senior started at Merrill in 1998 and moved four years later to Morgan Stanley, according to the database.
The move also underscores UBS’s appetite for high-producing teams as it has been stepping up its veteran broker recruiting over the past year-and-a-half. It had been courting a number of large private banking teams in addition to its traditional wirehouse hiring pool, but also last week hired an $11.2 million private wealth team from Merrill in New York led by Stephen M. Kincade and Alexander S. Fridell.
Recruiters have said UBS is willing to offer deals to some high producers that, when factoring in up-front and deferred bonuses, can reach the 300%-plus figures offered by Morgan Stanley, Wells Fargo Advisors, Ameriprise and other aggressive hiring firms.
Both UBS and Morgan Stanley withdrew from the Protocol for Broker Recruiting–the industry recruiting pact–in 2017 amid a broad cutback in hiring that lasted about three years. Their reinvigorated efforts have at times resulted in temporary restraining orders as the firms have sought to protect their flanks from customer attrition.
A UBS broker who had been generating $2.75 million with offices in Colorado and New Jersey last week agreed to not solicit customers governed by teaming agreements he had made with a former partner who remained at Morgan Stanley.
The HSS team’s shift to UBS was earlier reported in the Philadelphia Business Journal.