The managers had between them overseen a total of $17 billion of assets, making this one of the largest breakaways of 2019.

Six wealth management partners who collectively were called Luminous Capital – with a total of $17 billion of assets - have defected from First Republic Bank to create two separate registered investment advisor firms.

David Hou ($4.4 billion), Mark Sear ($2.9 billion), Robert Skinner ($4.1 billion), Alan Zafran ($3.9 billion) and Eric Harrison ($1.9 billion) are forming Evoke Wealth in Los Angeles and IEQ Capital in Monterey, California, according to RIABiz, and other publications.

A statement issued on Sunday on First Republic’s website said: “After close of business on May 31, 2019, the six wealth management partners formerly known as Luminous Capital announced that they were departing First Republic Bank in order to establish two new, independent Registered Investment Advisory firms. The newest ventures represent the fourth such move by the group. Luminous Capital was acquired by the bank in 2012, after having been formed in 2008 following the partners’ departures from Merrill Lynch and their prior departure from Goldman Sachs.”

The bank did not mention individual names or confirm the AuM figures in the media reports. A spokesperson for First Republic Bank declined to comment further.

The shift, by a group overseeing in total $17 billion of AuM, is a further sign of “breakaways” by managers from large institutions, creating RIAs and other wealth management models. This trend, so industry figures say, plays to a desire for independence and is moulded by a shift away from commission-based advice towards fee-based models. These moves also fit with advisors seeking to build their own businesses ahead of eventually retiring and selling their firms.

The trend has benefited organizations such as Dynasty Financial Partners which works with "breakaway" RIAs, by helping to raise capital, advising founders about strategy, and providing support services. Some organizations such as Focus Financial or Raymond James aggregate teams and firms, sometimes allowing groups to keep their original brand identities. Others, such as LPL Financial, offer platforms for the likes of RIAs and have made a flurry of announcements in recent months.

M&A activity remains brisk in line with continuing breakaways. For example, ECHELON Partners reported that the first quarter of 2019 saw a record 49 registered investment advisor M&A deals.

Breakaway activity also shines a light on what wealth managers consider to be a watertight definition of "independence". To see a debate about that subject, click here.