People Moves
Boston Private Picks McKinsey Executive To Succeed Vail As CEO
Boston Private Holdings has picked a McKinsey & Co executive, Clayton Deutsch, to succeed Timothy Vail as chief executive and president, the firm announced yesterday.
Boston Private, which controls ten wealth management and asset-management firms in five states that have about $19 billion in client assets, has experienced both impressive growth and economic challenges in recent years.
After a string of acquisitions following Vail’s coming on board in 1993, Boston Private then ran into trouble that was compounded by the 2008 financial crisis as its subsidiaries were hit by tightening credit lines and declining assets.
The firm received $75 million from The Carlyle Group, a private-equity firm, and subsequently divested three wealth management affiliates, including Rinet Co in Boston and Sand Hill Advisors, in Palo Alto, California, two asset management firms and Gibraltar Private Bank and Trust in southern Florida.
Remaining affiliates include Bingham Osborn & Scarborough in northern California and KLS Professional Advisors Group in New York City. Boston Private also has a minority interest in Coldstream Capital in Seattle and is focusing attention on its two west coast banks, Charter Private Bank and First Private Bank and Trust.
The bank - along with hundreds of other US financial institutions - had to borrow money from the government's Troubled Asset Relief Program, and has paid back about a third of the loan. Late last week, according to the Boston Globe, Boston Private said it will try to sell as much as $40 million in new stock to help repay the rest of the government loan.
Deutsch joined McKinsey in 1980 and was most recently global leader of McKinsey's Merger Management Practice. He will succeed Vail as chief executive on 31 July. Boston Private said the chairman position will be handed to a non-executive member of the company's board on that date.
Walter Pressey, Boston Private's current president, will retain his role as vice chairman overseeing government relations, investor relations and other areas.
