UPDATED: In massive break, $17B 'Luminous' team at First Republic departs en masse to form two separate RIAs --in LA and Foster City, Calif.
David Hou, $4.4B, Mark Sear, $2.9B, Robert Skinner, $4.1B, Alan Zafran $3.9 billion and Eric Harrison $1.9B are forming Evoke Wealth in Los Angeles and IEQ Capital in Monterey, Calif.
Author Brooke Southall
June 3, 2019 at 6:25 AM
June 3, 2019 — 2:03 PM
Many lessons to be lerned. 1.) Ultra High Net Worth advisors don't fit in a large bank 2.) Deal struscture is key and ALL cash deals with no equity don't work 3) Cross selling and cleint referals are never a good as the number we put in the deal model Goldman and oher firms have a better approach.
June 3, 2019 — 6:46 PM
First Republic has, until most recently, been able to deflect what it really is (a big bank) into the appearance of a high-end boutique wealth management firm. As it currently exists, it is roughly 85% the former and 15% the latter. With the departure of the Luminous group, that ratio changes to about 95-5. This event is likely to not just eliminate, but reverse the bell-cow effect the group had for the bank. It will be very interesting to see whether any advisor teams that may be in First Republic's pipeline now decide to go elsewhere. The pressure just intensified to get a big recruiting win and that immediate goal likely just became more expensive for First Republic.
June 13, 2019 — 4:50 AM
Why would you take my comment down?
June 13, 2019 — 3:39 PM
We take down things that come across as potshots, especially ones that end with an obscenity.