UBS Lands J.P. Morgan Private Bank Team with $75-Mln Production in Dallas
UBS Wealth Management USA has recruited one of the largest J.P. Morgan Private Bank teams in the U.S. as the wirehouse continues to bolster its sales force with high-end banking recruits, according to internal and external sources familiar with the move.
They had accounted for more than half of the roughly $135 million in revenue at J.P. Morgan’s Private Bank branch in Dallas, one of the sources said. The other said they managed around $25 billion in assets. Brown is expected to join UBS after a 90-day garden leave, although more junior members of her team may be able to move after 60 days, both sources said.
Reached at her J.P. Morgan office, Brown, who has worked at J.P. Morgan for 25 years according to LinkedIn, confirmed the team’s expected move, but declined to comment further citing company policy. She started in prime brokerage sales in 1996 and has been registered as a broker since 2001, according to BrokerCheck.
A spokeswoman for J.P. Morgan declined to comment, as did a spokesman for UBS, which has revived its recruiting efforts in the past 18 months.
J.P. Morgan’s U.S. Private Bank, which is led by 25-year bank veteran David Frame, oversees around $836 billion in client assets, according to his firm biography. The unit has around 500 advisors who generally work with customers who have $5 million or more in assets.
At least four large teams have left the Private Bank for UBS since October. The advisors defecting from J.P. Morgan were frustrated in some cases by the bank’s increased imposition of a client-segmentation strategy that means clients have to have at least $25 million to be served by a team, while those with between $5 million and $25 million were assigned to a single advisor, according to the same internal source.
Salaried bankers, who often provide more concierge family office-type services, rather than traditional brokerage and investment guidance, are also typically paid less than their commission-based wirehouse counterparts who earn a portion of the revenue they generate each year. The salaried bankers must earn their bonus each year by maintaining an aggressive pace of household acquisition and hitting other growth metrics, the source said.
Still, UBS’s recent focus on private bankers represents a new recruiting strategy for a traditional brokerage firm, since most had shied away from hiring bankers. Historically, brokerages are deterred by bank advisors’ restrictive garden-leave policies, which make it challenging to transfer clients’ assets, and their clients’ strong ties to the bank.
In evaluating the move, one of the sources said UBS estimated that Brown and team would likely transfer around half of their revenue and a third of their assets
The J.P. Morgan Private Bank departures to UBS have included a six-person team in Florida with $5 billion in client assets and $11 million in annual revenue, which moved in January and February, and an Ohio team with unreported assets which joined in March and April in staggered moves that reflected their varied garden leaves.
UBS in February nabbed a seven-person Los Angeles-based J.P. Morgan team that had been generating $26 million in annual revenue on $6.5 billion in client assets. And in October, it hired a team with $6 billion in assets in Atlanta.
UBS’s wirehouse competitor Merrill Lynch also last week hired a Citi private banker William R. Butler who was reported to be managing $17 billion in client assets. A recruiter who claimed familiarity with his practice said his team had produced around $55 million in annual revenue.