JP Morgan Divisions
Could someone explain the difference between JPM Asset Management and Private Banking to me? I thought they were very similar. Also, is JPM IBD more well-known than its Private Banking side? (i.e. are all sectors of JPM considered equals?)
Also, on a more general note, many of the BB banks and upper middle market firms seem to break up their divisions slightly differently. What is the best way to determine what a division really does? Is it just by experience? (Sorry, I'm pretty new to this.)
Thanks in advance!
JPM Private Banking is a division of Asset Management. Similar to how under the umbrella of JP's full IB, you have investment banking and S&T, within JPM AM, you have the Private Bank, and the Investment Management division. Private Banking manages HNW and UHNW client funds, where Investment Management handles institutional clients (ie. pensions, stuff like that).
And while most people tend to associate all the BB's names with their IB, JPM's Private Bank is the best PB on the street, with Goldman a close second.
The private bank is part of asset management, which is also composed of investment management. Think of the private bank as managing high net worth ($5M+) and ultra high net worth ($25M+) individuals' and families' assets. Investment management does the same but for institutions like pension funds, etc. Both manage assets, hence asset management. The WSO prestige hounds will always say IBD is better, but if you are interested in private banking, then JPM is one of the best in the business. I know some families have been with JPM for four generations. When learning about a new firm, always look at their website and check services provided.
Edit: Wow, our responses say almost the same exact thing.
I could be wrong, and I will be more than happy if someone corrects me, but: - Private banking should provide advisory services to wealthy people and help them to reach their financial targets. Sometimes it can also provide some investment banking related services for family business (this is the case of UBS and JPM that have specific desks within their PB practice); - Asset Management should practically manage specific assets (ie. money) for for individuals but also for other institutions.
I am not familiar with PB, but JPM is a world leader IBD player (top 2/3?) while I don't think it is ranked that high in PB.
The best way to understand the services they provide in each division is to have a look at their website even if, in general, they are very similar for each bank (ie. IBD is almost the same at DB, JPM, CS and so on)...
JPM's private bank is the best private bank in the world. It is ranked higher within the PB sphere than it's IB is within the IB sphere, and that is with them being a top 2 or 3 in IBD like you said.
Ok thanks. I was not aware of it. I had the feeling that UBS had a stronger presence (at least here in Continental Europe).
UBS is definitely their biggest competititor in Europe, while I'd say GS is their biggest competitor in the US.
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