Cresset is adding two San Francisco-based teams with a total of $5 billion in assets managed by JP Morgan Wealth Management. it's the last exit from the bank of former councilors of the First Republic.
The teams include three lead advisors and 12 support financial advisors and collectively managed assets for 160 client families.
Team leaders include Dagny Maidman, who joined the industry in 1996, including stints at Lehman Brothers and Credit Suisse before joining First Republic in 2015, according to his BrokerCheck profile. Chris Chase and Erik Ralston lead the other team moving to Cresset, each with more than two decades of experience in the industry. Like Maidman, they joined First Republic from Credit Suisse in 2015.
According to Cresset, the two teams have been in a partnership for more than 20 years and will be able to offer clients access to Cresset's Family Office Services platform. Cresset has more than $45 billion in assets under management as of April 1.
Late last week, JP Morgan shed two more multibillion-dollar teams that the bank acquired in its 2023 acquisition of First Republic following last year's regional banking crisis. Merrill Lynch recruited a $3.5 billion Florida-based team of 12 from JP Morgan. Citizens Bank acquired a $5 billion AUM San Francisco team; both groups were at First Republic before moving to JP Morgan in the buyout.
After the collapse of Silicon Valley Bank in March 2023, the contagion spread further across the banking industry as First Republic collapsed, marking the second largest bank failure in US history and the fourth regional bank to fail since the collapse of SVB .
In early May 2023, JP Morgan chose to buy the beleaguered First Republic from federal regulators, buying about $173 billion in loans, $30 billion in securities and $92 billion in deposits.
The acquisition also brought hundreds of First Republic advisers into JP Morgan groups. However, at the time, some were concerned that representatives of the First Republic would rise up against the restrictions of being on a wire.
or previous WealthManagement.com ANALYSIS found that nearly seven in 10 First Republic advisers had come from a call office or other large firm, suggesting some had fled the space for independence offered at a regional bank like First Republic.