Financial Advisor IQ – Content Page

Financial Advisors

A large advisory team in California and Connecticut fueled rapid growth in 2015. First Republicwealth management business defected to a Chicago-based registered investment advisory firm Creset Asset Managementaccording to sources familiar with the move.

The beleaguered First Republic, which has grown its property business significantly through years of aggressive recruiting, has seen steady exits by its competitor advisors in the weeks since. increase. Silicon Valley Bankfailure sowed suspicion against First Republic and other local banks.

The latest departure is the highly productive team formerly known as Constellation Wealth AdvisorThe team will join Cressett’s offices in Menlo Park, Calif. and Greenwich, Connecticut, according to registration records. The team managed about $13 billion in client assets at First Republic, according to sources who spoke on condition of anonymity.

Group includes Paul Tramontano Greenwich and John Goldstein at Menlo Park. The two were previously co-CEOs of the Constellation business and are joining Cresse as senior managing directors, according to LinkedIn profiles and sources.

Joining them at Cresset are advisors George Boudria, Sam Katzman and Angela Raitzin Greenwich and David Arijini, dean jackson and Michael Texido in Menlo Park, according to registration records and sources.

“We are thrilled to welcome this dynamic and entrepreneurial team to Cressett.” Avy Stein, Creset co-founder and co-chair, said in an email to FA-IQ. “Our shared values ​​and depth of experience in serving high net worth and ultra high net worth clients perfectly complements Cresse’s holistic approach to multigenerational family services and wealth management. .”

Stein said the team will not only strengthen Cresset’s presence in Silicon Valley and Connecticut, but will also help seed the New York City-based office set to open later this year.

A First Republic spokesperson reiterated that an “overwhelming” majority of the bank’s wealth managers chose to stay with the company.

“Our colleagues and customers continue to appreciate the unique benefits of First Republic’s integrated banking and wealth management model and our culture of providing exceptional service,” the spokesperson said in an emailed statement. I am evaluating.

When First Republic acquired the Constellation business for $115 million in cash in 2015, the advisor managed $6.1 billion in client assets, according to the bank’s acquisition announcement. His release from the press in 2015 also referred to “long-term employment agreements” signed by his six partners at Constellation as part of the deal.

First Republic and Cresset declined to comment on whether the partners have been released from their contract terms or if they have expired.

First Republic has been an active recruiter for its wealth management team for many years, with nearly 200 advisors and over $270 billion in client assets at the end of 2022. In early 2023, the company continued to bring on a team of advisors. Morgan Stanley, BNY Wealth Management and bank of americaof Merrill Lynch.

But concerns about the future of First Republic prompted a number of companies that lost First Republic advisers to offer the bank a $30 billion bailout in the wake of Silicon Valley Bank’s collapse in March. .

Since then, many First Republic financial advisors have left, in some cases just months after being hired.

Earlier this month, the team, which joined the First Republic from Merrill just six months ago, moved to Morgan Stanley. And then the team that joined the First Republic from Morgan Stanley in January headed to JP Morgan.

Most of the teams that left the First Republic chose Morgan Stanley, but others included Rockefeller Capital Management, RBC Wealth Management, UBSMore.

Founded in 2017, Cresset managed about $30 billion in client assets at the end of January, according to the company’s website.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *