$3.6 Million UBS Team Joins First Republic in New Jersey
A four-advisor UBS Wealth Management USA team in Paramus, N.J., joined First Republic Bank on Friday, the first private wealth office that the aggressive San Francisco-based bank has opened in the Garden State.
Kieran J. Lynch, John Inserra, Craig Kaufman and Craig’s father, Joel, were producing $3.6 million in annual fees and commissions at UBS and managed around $550 million, according to a person familiar with their practice. Lynch, Inserra and the younger Kaufman are managing directors, First Republic said, while Joel Kaufman is a vice president.
UBS, for its part, recruited James “Tom” Young to its branch in Miamisburg, Ohio, on Friday, a relatively rare move at the wirehouse that has been focusing more on retention than on hiring. Young, who began his career at UBS predecessor PaineWebber in 1991, said he was producing around $1 million on $100 million of customer assets at Morgan Stanley.
First Republic, which has around 175 advisors, has been an aggressive recruiter of wirehouse advisors, particularly on the West Coast. In July it lured a $2.5-million two-person team of producers from Merrill Lynch in Palo Alto, Calif.
The New Jersey team is the first to join First Republic on the East Coast since the bank hired veteran manager Michael S. Lee, a former regional director for J.P. Morgan Securities, in March. Lee, who also oversees offices in New York, Connecticut and Florida, had known Lynch and Inserra from their time at Smith Barney approximately 20 years ago, the source said.
None of the First Republic advisers returned calls for comment about the reasons for their move.
First Republic for the past two years has been offering recruiting packages that can reach 300% of experienced brokers’ trailing-12-month revenue if asset-transfer targets are met over nine years, an unusually high offer.
Lynch and Inserra joined UBS in 2006 after careers with Smith Barney or its predecessors that began in 1992 and 1988, respectively, according to their BrokerCheck records. The Kaufmans had been with UBS for 12 years, joining from Morgan Stanley in 2007. (The son began his career at Morgan Stanley in 2004 while his father—a 43-year industry veteran—had been with the wirehouse since 1999.)
A spokesman for UBS declined to comment on the New Jersey departures and on Young’s arrival in Ohio.
A spokeswoman at Morgan Stanley, where Young had worked for just over a decade, did not immediately respond to a request for comment on his move.
First Republic’s recruiting successes were set back in July when the former Luminous Capital group that was collectively managing $16 billion of assets left to start two independent registered investment advisory firms. First Republic has said that it expects to retain just about $2 billion of its former team’s assets.
UBS AG in its second-quarter earnings report said that headcount at its Americas wealth unit fell by a net 248 brokers, or 3.5%, over the past year ending on June 30. The decline reflects its strategy of focusing on retaining veteran advisers with big books and winding down its overhead of forgivable loans from past hiring deals, bank executives have said.
In another shift in New Jersey, Raymond James Financial hired two Morgan Stanley brokers in its employee channel last week. René Dierkes and Frank McKenna joined RayJay’s Morristown branch from Morgan Stanley Wealth Management, Raymond James said in a press release.
They had been managing $260 million in client assets, according to the Florida-based firm.
—Vicky Ge Huang contributed to this story.