UBS Hires Mega JPMorgan Bank Team, JPM Securities Lures 40-Year UBS Advisor
UBS Wealth Management USA is again reaching into the private banking universe to bolster its brokerage force, hiring a multi-billion-dollar-asset team of J.P. Morgan Private Bank advisors in Atlanta, according to well-placed sources.
Taking the plunge from the salary-plus-bonus compensation model of private banks to the brokerage world’s revenue-based grid payout system will be wealth advisor John McColskey, trusts-and-estate specialist Steve May and investment portfolio specialist Jeff Lewis, the sources said.
The trio could not be reached about their plans.
A J.P. Morgan spokeswoman declined to comment, but confirmed that Lewis has been replaced in his additional role as Southeast region head of investments, overseeing other team portfolio specialists in Atlanta, Charlotte and Nashville.
UBS has been pursuing a strategy of hiring advisors servicing well-heeled clients from private banks and white-shoe private wealth units of firms such as Goldman Sachs and Sanford C. Bernstein that have relatively low payout grids.
Private bankers are generally less expensive to recruit because they typically transfer fewer bank-entrenched client assets than traditional brokers, but UBS has been making attractive offers, according to outsider recruiters who spoke on condition of anonymity. It competed with Morgan Stanley to attract the J.P. Morgan team, one of the sources said.
UBS executives three years ago cut budgets for hiring experienced advisors from competitors, and its U.S. brokerage force has fallen by the hundreds through attrition to under 6,000, according to brokers at the firm.
A UBS spokeswoman declined to confirm the hiring of the J.P. Morgan team. Lane Strumlauf, the Atlanta-based head of UBS private wealth in the Southeast, did not return a call for comment.
J.P. Morgan last year sued a private client advisor in Florida who joined UBS.
On the flip side of the trade, J.P. Morgan Securities has recruited two advisors in Morristown, NJ, who had spent their entire brokerage careers at UBS Wealth Management.
The father-son team of Patrick and James Delaney, who a J.P. Morgan source were producing $1 million of revenue on $150 million of client assets, made the move last week, according to their BrokerCheck histories.
Patrick Delaney had been with UBS and its predecessor PaineWebber for 39 years, according to BrokerCheck, and his son joined him at UBS in 2008.
A third advisor on their team, Victor Anthony, remains at UBS, which he joined in 2002.
Anthony and James Delaney each declined to comment, and Patrick Delaney could not be reached for comment.
“The Delaney Team has strong momentum and will represent our brand well,” J.P. Morgan Securities CEO Chris Harvey said in a prepared statement. J.P. Morgan Securities is J.P. Morgan Chase’s traditional brokerage unit that was seeded by the bank’s financial crisis-era purchase of Bear Stearns & Co.
McColskey, 54, the chief client rainmaker on the UBS-bound team in Atlanta, joined J.P. Morgan five-and-a-half years ago. He had earlier worked at Homrich & Berg, a large registered investment advisor firm in Atlanta where he had been a principal. He also had experience at Alex. Brown & Sons, ING Baring Furman Selz’s private asset management division and Atlantic Trust Pell Rudman, according to a 2004 press release from Homrich.
May, who was a managing director at J.P. Morgan, joined the bank in May 2008, and was previously a financial planner at Wachovia Bank and a private client tax associate at Arthur Andersen’s family wealth planning group, according to LinkedIn and other web profiles.
Lewis, a J.P. Morgan Private executive director, had been with the bank since June 2003, according to his J.P. Morgan web profile, which the bank took down last week. His role as Southeast region investments head counseling other teams, which he began in April 2018, has been assumed by Jeff Mohammadi, according to the bank. Mohammadi joined J.P. Morgan in 2011 as a banker in Miami before relocating to Atlanta in the role of a team investor, a spokeswoman said.