Strategy
UBS Outlines Opportunistic US Wealth Management Strategy
UBS will recruit upwards of 200 Ultra High Net Worth client advisors in the competitive US market over the next three years by providing a home for both private bankers and private wealth advisors, according to head of US Private Wealth Management, John Straus.
Mr Straus described his recruitment strategy as “opportunistic” in an interview with WealthBriefing.
"We want to make sure we are casting a wide net so we are bringing advisors on under the private bank model and private wealth advisor model."
He described the private bank model as appealing to advisors who prefer a less structured remuneration arrangement not tied to portfolio transactions; while the private wealth advisor model is more of a traditional brokerage model.
Mr Straus said the Ultra High Net Worth business is currently the fastest growing segment of UBS’ US operations – he defined UHNW as individuals with a net worth of $25 million and at least $10 million invested with UBS.
"When you look at the fact that the US is the largest wealth management market in the world, it's a good place to have an accelerating growth rate," he said.
Currently UBS Private Wealth Management employs 160 advisors. Mr Straus planned to have 350-400 private bankers and private wealth advisors by 2010. Currently he said the business had a much larger proportion of private wealth advisors.
He would not comment on potential acquisitions however he noted valuations at the moment are the highest they have ever been.
“The fact they are more expensive to buy could be a barrier to acquisitions in this space, but it depends on the individual circumstance and what synergies can be found."
Mr Straus reiterated the group’s formerly disclosed plan to open five new offices this year and five new offices next year.
This year he earmarked Stanford (Connecticut), Atlanta, Chicago, San Francisco and Los Angeles. Next year he said the firm would open offices in Seattle, Palo Alto (California), Huston, Boston and Philadelphia.
Currently UBS has four Private Wealth offices in LA, Palm Beach and two in New York.