of $20 million of assets is becoming intense, marked by the
resurfacing of Peter Scaturro at Goldman Sachs in a top wealth role
and the defection of additional senior executives from US
Trust, now part of Bank of America.
Peter Scaturro, who recently controversially left his position as
chief executive of US Trust during its $3.3 billion acquisition by
Bank of America (BofA), has joined Goldman Sachs, where he will be
global head of its expanding private wealth management
business.
Go deeper with GlobalData
His appointment signals new competition for the ultra high net
worth client with assets of $20 million and above, which both US
Trust and Goldman Sachs target, according to New York
bankers.
This is the third senior role in wealth management for Scaturro,
who is 47, in as many years. In 2004, he was forced out as head of
the Citigroup private bank in Japan after Tokyo regulators ordered
the closure of the bank because of regulatory infractions.
Goldman is hiring Scaturro to lead the continued expansion of its
private banking efforts. It has 20 private wealth management
offices worldwide but does not officially disclose client assets.
However, estimates are that it has some $237 billion under
management, giving it 12th place among leading global wealth
managers, just behind Deutsche Bank, according to a ranking
published by consultancy Private Asset Management.
Scaturro left U.S. Trust after clashes with Bank of America (BofA)
earlier this year because of reported strategic disagreements over
the company’s integration into BofA’s wealth management
operations.
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By GlobalDataDefections from US Trust mount
US Trust has also just had number of senior defections,
suggesting discontent among its key executives over the policies of
the new owner. UBS has just announced that two top men from the
multi-family office group of US Trust have joined to run a similar
division within its private bank in the US.
The two defections follow the hiring by Morgan Stanley Private
Wealth Management of a team from U.S. Trust to staff its newly
created Family Wealth Group in July.
Significantly, these top-level defections are by U.S. Trust
executives serving the very cream of American private clients
– ultra-wealthy individuals and families in the $50 million bracket
and above – a segment over which there is intense competition among
wealth managers, including Goldman Sachs.
In the latest moves, UBS recruited Robert Mallernee and Jackson
Parham Jr as managing directors with responsibility for running its
new multi-family office. Both are based in Chapel Hill, North
Carolina and will report to Craig Walling, CEO of the UBS Private
Bank.
“Our clients will benefit from the breadth and depth of expertise
that Rob and Jack bring to our firm,” said Walling in a statement.
“UBS is committed to delivering the comprehensive suite of services
that clients in the ultra high net worth segment expect. With Jack
and Rob joining the firm, we will now be able to offer multi-family
office services to our wealth management US clients.”
At the multi-family office group of U.S. Trust, Mallernee served as
principal. In this role, he was responsible for providing the
strategic direction, growth and leadership of the business. He was
also the interim regional head of U.S. Trust in North Carolina and
its three offices in Greensboro, Charlotte and Raleigh. Mallernee
was listed as one of the ‘Top 100 wealth advisers’ by both Robb
Report and Worth magazines in 2006, UBS said.
Parham served as principal and chief investment officer of U.S.
Trust’s multi-family group. In this role, he oversaw the delivery
of investment consulting services to clients through financial
consultants based in regional centres.
In Morgan Stanley’s recruitment from U.S. Trust, the firm appointed
Robert Stolar to head its new family wealth group, along with
several of his colleagues. He joined after 16 years with U.S.
Trust, where he led the company’s family wealth consulting group
and, subsequently, its western region multi-family office group.
The new unit, focused on families with net worth of $50 million and
above, reports to Donald Herrema, managing director and head of
private wealth management, Americas.
BofA moves to ensure and reassure
In an attempt to ensure continuity and reassure clients, BofA has
announced that it is retaining the U.S. Trust brand, naming the
combined wealth division U.S. Trust, Bank of America Private Wealth
Management.
BofA has moved to quash concerns that it would have trouble
retaining many of U.S. Trust’s ultra high net worth clients in the
combined operation, which have about $265 billion of private
banking assets under management. Frances Aldrich Sevilla-Sacasa,
who runs the combined unit, said that there had been “normal
attrition” on both the employee and client side, though she
declined to say how many had left.
BofA has unveiled a number of new positions as it continues to
absorb U.S. Trust and promotes executives it wants to retain. Its
new wealth structuring team, which will report to Lynn Davis, will
oversee all financial planning, including tax and philanthropic
planning, trust organisation and all related functions, as well as
tax services.
Global focus for Goldman
Goldman Sachs, meanwhile, confirmed that Scaturro’s appointment was
made in order to drive its global wealth-gathering
efforts.
Peter Kraus, head of the investment management division, said in an
internal memo: “We are expanding our global footprint, increasing
our client coverage and opening new offices in a number of key
locations. Scaturro’s extensive experience will help us to continue
the robust growth of our global business.”
In a reshuffle sparked by Scaturro’s arrival, Goldman has appointed
Christopher French as co-head of its wealth unit outside the US.
French, the former chairman of European investment banking, will
share his position with Doug Grip, the current head of private
wealth management outside of the US.
French, chairman of European investment banking, joined Goldman
Sachs in 1991 and worked within its European investment banking
division where he occupied a number of senior positions. These
included chief operating officer of the UK, co-head of the firm’s
financial institutions group, head of investment banking services
and chairman as European investment banking. He takes up his new
position at the beginning of September.
