turnover rate in Private Wealth Managment/Private Banking

watever's picture
Rank: Monkey | 55

Is the turnover rate in PWM/PB high?

Are these people simply fired b/c they could not get the clients or did they switch careers?

Are you given clients at a BB or do you have to cold call to succeed?

Thanks

Comments (17)

Dec 15, 2010

good questions. anyone?

im interested in the answers as well.

Dec 15, 2010

You start out at the very bottom. If you're driven enough, you can make a good living as an advisor. You'll get a shitty salary for the first 18-24 months (25-35k) and after that it's all commissions. When I did my PMW internship, I knew 3-4 guys who were starting out and were making 100-200 calls a day and kept going at it. But once you've built a solid number of AUM, it's a really relaxing job. The guy I worked for worked 9-5, took off whenever he wanted, and was a plain vanilla type guy so all his clients money was in MFs, IG bonds, blue chips, CDs. Once in a while, he'd have a idea or 2 and would call a few clients up recommending it. Other guys would deal with specific assets (options, FX, etc.) and charge transactions fees. Gain the trust of your clients and they'll reccomend you to their friends, charge an annual fee and the money keeps coming in.

If you were fired then you sucked. If you're good, you don't leave.

Dec 16, 2010

Depends on the bank, too.

Dec 16, 2010

so all you do is cold call as an analyst? is there any other way to get clients besides cold calling?

Dec 16, 2010

It depends who you're working for for and what exactly you're doing. From what I hear JPM, CS, GS you're doing more analyst-type work, making presentations, valuing companies, talking to clients etc. Others are going to be cold-calling shops. You just have to research the firms. And you can definitely get clients besides cold-calling. People on here are always talking about networking and it doesn't stop when you leave college. Hit up family, friends, go to upscale bars/country clubs/events and meet people who fit the description of clients your firm is geared at. But if you're at a shop that does a lot of cold calling, expect to be on the phone most of the day...

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Dec 16, 2010

ok...but for a bank like JP Morgan PB the minimum is apparently 25 million. Where r u supposed to meet those people? seems pretty difficult for a person to give u money since you are only 22/23.....

Jun 15, 2014

hmm

Dec 17, 2010

^^^ Yeah, at big BB PBs (JPM, GS, CS) senior people are primarily responsible for bringing in clients.

Now, as an analyst, you may help research prospects or bring ideas to the table on who your senior banker/adviser should prospect, but you certainly are not going out to a initial meeting with a $100M prospect.

Dec 17, 2010
tan86:

^^^ Yeah, at big BB PBs (JPM, GS, CS) senior people are primarily responsible for bringing in clients.

Now, as an analyst, you may help research prospects or bring ideas to the table on who your senior banker/adviser should prospect, but you certainly are not going out to a initial meeting with a $100M prospect.

Does the home office in most BB's Private Banking businesses actually handle clients? For the couple of banks I was speaking with, they have advisors in smaller offices around the country who actually sign and service clients. The home office was mainly there for institutional support to the advisors. Does that hold up across the board or is that unique to a few BBs?

Dec 17, 2010

Lloyd Christmas - Usually the "home office" does, as you said, offer support for the regional offices. However, the two are not mutually exclusive. The home office will in most cases have front office advisor teams that work in the same location as support desks (but probably on different floors).

For example, JPM's PB is headquartered in NYC. In NYC sit JPM PB strategy and solutions teams (think equity solutions, investor relations, etc). These teams help regional front office advisor teams. There are also front office advisor teams that work in NYC.

Dec 18, 2010

Back to the original question on turnover, for actual advisors at BBs, its close to 80% w/in the first 2 years. Generally, you'll be on salary (100-150k) and then at that point be expected to be self-sustaining from the fees from your AUM.

Dec 27, 2010

At 22 or 23 you're never going to bring in the $25MM+ clients. The banks obviously know this which is why you spend almost all of your time supporting the senior "bankers" whose job is to bring in the assets.

Dec 28, 2010

also an important distinction - these clients are worth $25million... it doesn't mean that they're sending all of their $ to the same place

Dec 28, 2010

Is there a high turnover rate at the banks where you are only supporting senior "bankers"? do they leave by choice or are screwed b/c 80% seems like a pretty big risk

Dec 29, 2010
watever:

Is there a high turnover rate at the banks where you are only supporting senior "bankers"? do they leave by choice or are screwed b/c 80% seems like a pretty big risk

Even for senior advisers the turnover rate is fairly high. I can't give you an exact number, but I don't have enough finger and toes to count the number of new people / people who left over my 2 year PB stint. And my office wasn't even that big!

Why does this happen? There is tremendous competition between the brokerage firms to buy books of business and those advisors who oblige get paid handsomely. For example, if you are a senior adviser who has a book of business of $500M, you are getting calls from ML / MS / UBS headhunters every day. If an advisor decides to switch firms they receive an upfront bonus based on the percentage of assets they have, but they then pay back some of that bonus depending on the amount of assets they do not bring over. It really is a rat race, especially in today's environment where the big banks are looking to pick up marginal revenue growth through their wealth management line of business.

Dec 29, 2010

80% was for post-MBA positions that are client-facing and tasked with bringing in new clients.

Dec 29, 2010
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