Wells Team in New York Generating $5.5 Million Joins First Republic
First Republic Bank continued into its bicoastal build at the expense of wirehouses in advance of the long President’s Day weekend, hiring a $5.5 million team of four Wells Fargo Advisors brokers in New York City last Friday.
Led by managing directors George Fuchs and David Schulman, the four-advisor team serviced about $1.5 billion of assets administered at Wells for individuals, businesses and small institutions, said people familiar with their practice.
Reached at his new office on Tuesday morning, Schulman said he could not immediately comment on the team’s decision to join the San Francisco-based bank.
First Republic has been poaching large producers from big brokerage firms over the past two years in an attempt to broaden its business-bank profile to include wealth management for wealthy families and individuals. Though many of its hires came from Merrill Lynch, which briefly owned the bank, it has expanded its turf-picking this year.
In January, it hired a seven-person team from Wells Fargo in San Diego that generated $4.7 million of fees and commissions in 2018 and two UBS Wealth Management USA groups of advisors in southern California who collectively generated $6.7 million.
Schulman and Fuchs, both graduates of the State University of New York at Albany, began their brokerage careers at Dean Witter in 1997 and 1998 respectively, and moved together to Dean Witter, Smith Barney and—in late 2008—to Wells Fargo Advisors, according to their BrokerCheck histories and a news release from First Republic.
Their junior Wells teammates, Gregory Carafello and Chad Cohen, also joined First Republic as vice presidents. Carafello began his brokerage career at Wells in 2012, while Cohen has been a registered rep since 2014, beginning at Credit Suisse Securities (USA).
First Republic, which was added to the S&P 500 index late last year, generated 14.8% of its revenue last year from wealth management, up from 13.6% in 2017.
Wells Fargo has lost over 1,000 brokers net since its parent company acknowledged in late 2016 that bankers created false retail accounts to meet sales quotas and qualify for bonuses. A spokeswoman at Wells Fargo Advisors declined to comment on the New York team’s departure or on their reported production and assets under administration.
Wells, which employs almost 14,000 brokers across its private client, in-bank and independent brokerage channels, last month created a new business for independent registered investment advisers in hopes of keeping revenue in-house. Two former private client group advisors have announced thus far that they will run RIA practices through the platform, which Wells is running in association with RIA custodian Trade-PMR.