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Wednesday, June 19, 2024

$500M First Republic Team Leaves JPMorgan for LPL


Another former First Republic advisory team that joined JPMorgan after it acquired the beleaguered bank is leaving the firm.

In this case, the Newport Beach, Calif.-based duo Tim Woodall and Dustin Raring are joining LPL. 

The team, which managed about $500 million in assets at JPMorgan, is launching Highway One Capital, an independent practice affiliated with LPL’s Strategic Wealth Services, the firm’s affiliation model formed in 2020 for advisors at wirehouses and large regional firms. 

“This decision to move to LPL was driven by our desire to have full control in how we build our business and serve clients,” Raring said about the transition.

Woodall joined the industry in 1998, spending 10 years with Merrill Lynch before a 6-year stint at UBS, according to FINRA records. Raring entered the industry in 1992 at PaineWebber, with stints at Oppenheimer, Invesco and Royal Alliance before joining UBS in 2012, where he met Woodall. The duo moved to First Republic in 2015.

Both advisors work with business owners and high-net-worth multi-generational families. Taylor Ford will join them at LPL to work on client support. 

Advisors with $200 million or more in AUM can join SWS to gain autonomy in running their practice and receive back-office support. After the transition is complete, SWS teams will get operations support, including a business strategist, marketing partner, CFO and administrative assistant, according to LPL.

After Silicon Valley Bank collapsed in March 2023 and kicked off a series of regional bank failures, First Republic was one of the highest-profile casualties. It became the second-largest bank failure in U.S. history (and the fourth regional bank to fail following SVB’s downfall). 

Regulators briefly seized First Republic before JPMorgan Chase stepped in to purchase the bank (First Republic Wealth Management managed about $290 billion in assets at the time of the collapse). While some First Republic advisors opted to join different firms instead of moving to JPMorgan, many, including Woodall and Raring, made the shift.

However, the shift to JPMorgan was a “full circle” move for many First Republic advisors who started their careers in massive brokerages, only to find themselves back at a massive firm after the purchase. A 2023 WealthManagement.com analysis found that 69% of First Republic advisors joined from a wirehouse or large firm, including Ameriprise, Goldman Sachs, JPMorgan, Raymond James and Credit Suisse, among others).

Woodall and Raring are the latest in several former First Republic teams to ditch JPMorgan in recent months. In late May, a San Francisco team led by advisor Brian Nagle with about $1 billion in AUM joined Citizens from JPMorgan, following another former First Republic San Francisco team leaving JPMorgan (that crew managed more than $5 billion). 

That same week, a Florida-based former First Republic team with $3.5 billion AUM left JPMorgan for Merrill Lynch. The team included four wealth managers and six client associates.

In April, Cresset added two San Francisco-based teams totaling $5 billion in managed assets from J.P. Morgan Wealth Management. In March, Rockefeller Capital Management recruited another former First Republic, Califorinia-based team managing about $922 million in assets from JPMorgan.

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