The ranks of ‘private bankers’ at global investment banks like JP Morgan and Goldman Sachs have become some of the most sought after recruits in 2020. Their relative books of business have been dubbed more portable than previously believed and the market is beginning to reflect it.
We’ve previously discussed that UBS has been committed to and benefiting from recruiting ‘non-traditional’ teams in the past year, but we wonder, who’s next? What firm might be the next to jump into the fray and begin valuing these groups based on their stated revenue as opposed to their W2 personal income?
As of this post, we aren’t sure who it might be, but we think it makes sense for both Wells Fargo and Merrill Lynch (ML has dipped their toe into the private banking waters a bit already). Wells Fargo’s inclusion is obvious – they need the good press, momentum, and to replace the advisors that have walked away from the firm over the past two years.
And Merrill Lynch – it’s well documented that every headline associated with a team leaving BofA/ML isn’t a small fish. Big teams have been leaving ML for years. Adding outsized assets and revenue by way of private banking teams would serve the firm well.
No matter who it is, they aren’t getting anywhere until they begin to adjust their recruiting deals away from W2 income. Someone is going to catch up to UBS – let’s see who gets there first.
AP
