called ‘Wall Street’s own private bank’ is due to start operations
early in the new year. Fieldpoint Private Bank & Trust is
receiving extensive backing from former Merrill Lynch executives,
as well as other senior figures in banking and business.
A motivation for the new venture is understood to be to tap into
the dissatisfaction among the super-rich, many of whom have worked
on Wall Street, with the level of service from existing private
banks as well as product-pushing trends in the wealth
industry.
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By GlobalDataFieldpoint’s president and CEO, Kevin McCabe, said: “I would
describe our firm as providing the focus and expertise of a private
bank, the personalisation and membership feel of a family office
and the local access and responsiveness of a community bank.”
David Komansky, William Schreyer and Dan Tully, three former
Merrill Lynch chief executives, have agreed to back the bank, which
promises an “extraordinary level of personalised service” to
clients. Fieldpoint chairman Daniel Donahue and finance director
Kevin O’Hanlon also used to work at Merrill Lynch. McCabe, who was
previously with JPMorgan Chase, says Fieldpoint will offer its
clients wide networking opportunities. Clients will be offered the
opportunity to share ideas with each other, including investment
opportunities.
The bank declares: “Our 31 founders are people who understand the
needs of our members because they are in the same situation that
our members – and potential members – are in. They know what it
takes to build and manage wealth. And they have individual needs
for specific services that make their lives easier.”
The backers, all major figures in finance, have agreed to buy
shares in Fieldpoint and give it business. They include Jerome
Kohlberg, co-founder of private equity firm Kohlberg, Kravis and
Roberts; Joseph Grano, former chief executive of UBS Paine Webber;
Tom Hughes, former head of Deutsche Asset Management; and Joe
Moglia, chief executive of online broker TD Ameritrade.
Former Merrill Lynch executive Michael Marks, chairman of NewSmith
Capital Partners, is the sole British backer. Each of the backers
has subscribed just more than $1 million for their stock, to create
an initial equity capital of $36 million. Another $9 million has
been set aside for future backers.
Fieldpoint’s McCabe expects to start with four experienced MD-level
advisers, covering investment management and private banking
disciplines. Executive management will also be directly involved
with client management. The client management team will be
supported by an experienced lending team and family office
staff.
“We expect that our founders will all be doing business with the
firm, as well as supporting the effort through networking contacts,
referrals, etc,” he told PBI. “We expect to work with wealthy
individuals, families and their related businesses of similar
profile to our founding investors.”
Overall, according to McCabe, the ambition is to build “a unique
membership-oriented, boutique firm that will provide integrated
private banking, investment management and family office
services”.
“We expect to differentiate ourselves through an extraordinary
commitment to customised personal service, experienced and
empowered staff, exceptional investment opportunities, direct
access to executive management to support immediate approvals and
rapid turnaround, and a highly responsive, custom-tailored lending
process,” he said.
