$3.5 Million UBS Broker Goes Indy, RBC Nabs Wells Vet with $250-Mln Book
UBS Wealth Management, Wells Fargo Advisors and Merrill Lynch lost veteran brokerage teams cumulatively managing over $1 billion in client assets in the past few days to non-wirehouse rivals.
Baum, who launched the new venture last week on his 65th birthday, worked at wirehouses for 40 years, including 27 years with UBS and the rest with E.F. Hutton and successor firm Lehman Brothers.
Working with recruiting firm Diamond Consultants, he considered several independent business models before casting his lot with Dynasty, he said, but had no interest in remaining with a big brokerage firm where his customer relationship management and other technology choices are limited.
“Even though there would have been a significant payday, it was just never an option,” he said. “Something as simple as sharing information is very challenging in the wirehouse community. They just aren’t integrated, they keep updating, and eventually they will get the [technology] correct, but I guess I started to get impatient at 65.”
A UBS spokesman declined to comment on the team’s departure. The wirehouse has lost at least five teams in the past two weeks, including an Alabama group producing $7.8 million and a $2 million-plus team in Los Angeles, both of which joined Wells Fargo Advisors.
Baum specializes in business owners looking to manage “liquidity events,” he said. His team includes his son, Brian, who joined him at UBS in 2012, six-year registered rep Kendra Kasznel Reilly, eight-year rep Christopher M. Duerr, and seven-year rep Evan Fitzpatrick, who joined UBS two years ago from Merrill Lynch. Interchange Capital is custodying client assets with BNY Mellon’s Pershing, and using Purshe Kaplan Sterling Investments as its broker for transactional business.
Separately, RBC Wealth Management on Thursday hired Greg Wells in Rockville, Md. from Wells Fargo Advisors, where he was managing about $260 million in client assets, according to the U.S. unit of Royal Bank of Canada.
Wells, who began his brokerage career at PaineWebber in 1998 and has been with Wells Fargo for more than 12 years, is at least the sixth multi-million-dollar wirehouse producer to hang his hat with RBC this month.
The firm two weeks ago hired a UBS veteran in New York who was producing more than $7 million and in late May landed another team of 35-year Manhattan-based brokers who were managing about $650 million at Morgan Stanley.
RBC last week also reached into regional firm Janney Montgomery Scott to hire a team of three brokers in New Jersey and Pennsylvania who were managing about $270 million and each of whom has more than 20 years’ experience.
Clark Mangan, James Ernst and David Rankin had been with Janney for more than 11 years, and earlier worked together at Ryan Beck & Co. and Wachovia Securities (via predecessor firms), according to their BrokerCheck histories. Mangan and Ernst began their brokerage careers 26 years ago at Olde Discount Corp. and H&R Block Financial Advisors, respectively, while Rankin started his career with Olde 22 years ago.
In another wirehouse departure, a five-broker Merrill Lynch team in Coeur d’Alene, Idaho, that was managing about $525 million in client assets, joined Raymond James’ employee channel on May 28, the firm said in a release on Wednesday.
Led by Joseph R. Anderson, a 32-year Merrill veteran, the team also includes Matthew A. Lyman, Jeffrey L. Smith, Heather Bolster—who each have been brokers for more than 20 years—rookie advisor Tyler Christian Anderl, and two client associates.
Anderson said in a prepared statement that though he remains an employee he welcomes the autonomy at Raymond James that contrasts with growth and product targets imposed by his former firm.
“Raymond James gives advisors the independence to practice our craft and doesn’t impose any programs or quotas that don’t align our interests with those of our clientele,” he said.
Merrill, for its part, continues its freeze on hiring veteran brokers while focusing on developing new brokers by hiring early-career producers in the first and second quintiles of comparably experienced colleagues. On June 3, it lured Megan Rehill from Morgan Stanley in Red Bank, NJ to join its “Accelerated Growth Program,” which guarantees three years of a salary matching previous compensation, up to $250,000, plus a conventional grid payout.
Rehill began her brokerage career in 2010 at Merrill as a client associate, but had been with Morgan Stanley since 2013, according to her BrokerCheck history and LinkedIn profile.
The two-year-old Accelerated Growth Program netted 168 new advisors in 2019 compared with 221 who joined its conventional branch system, Merrill said earlier this year.