UBS Loses $3 Million-Duo in San Francisco to First Republic
First Republic Bank on Friday hired a pair of veteran brokers in San Francisco from UBS Financial Services, continuing an aggressive recruiting effort for advisors with multi-million-dollar revenue books, sources at the brokerage firm and the bank confirmed.
The new recruits are Robert Gehlen and David Mucha, who are believed to have produced around $3.1 million over the past 12 months and oversaw some $600 million of client assets at their former firm.
A UBS spokeswoman did not immediately respond to requests for comment.
Brian Riley, who joined First Republic almost two years ago after running the Pacific West region of Merrill Lynch’s private banking and investment group for ultra-wealthy investors, did not return a call for comment.
While Riley has recruited from his former firm, he and other First Republic managers also are waving healthy deals and the promise of referrals from its private bank to brokers from a range of firms if they generate $2 million or more of annual fees and commissions and agree to work in cities where the parent bank operates, according to recruiters.
Bonuses can reach in the vicinity of 350% of brokers’ trailing 12-month revenue at the top end, one recruiter said. The deals are being made as Merrill, Morgan Stanley and UBS have been reining in their recruiting packages for veteran advisors.
In February, First Republic hired Paul Feinstein, another UBS veteran who served “private wealth” clients from Los Angeles. A month earlier, it persuaded a 14-person Merrill team in New York City managing some $1.3 billion of client assets to make the move. The bank also opportunistically hired more than a dozen former Credit Suisse brokers when the Swiss bank shuttered its U.S. brokerage operations at the beginning of 2016.
Neither Gehlen nor Mucha returned calls for comment.
Gehlen has worked as a broker for 23 years, first registering with Lehman Brothers in 1992. He subsequently worked at Lehman successor Smith Barney, ING Furman Selz and DB Alex. Brown before joining UBS in May 2006, according to his BrokerCheck history.
Mucha began his 19-year career in 1997 with Prudential Securities but, like Gehlen, joined DB Alex. Brown in 1999 and shifted to UBS in 2006, according to the database.