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The UHNW recruiting pitch has stopped leading with the check

NewEdge's 22nd office adds $1.25 billion in client assets and eight people to a platform built for multi-generational books.

At a glance

  1. Managing director James Shafer had been at UBS since 2005 and principal Michael Block since 2011, according to BrokerCheck, with vice presidents Joseph Gossett, Pamela Smith and Rachelle Carlson-Oien also making the move alongside three support staff.
  2. The reason the team gives for leaving the wirehouse is worth reading closely.
  3. NewEdge's corporate structure is built for that handoff.

NewEdge Wealth has taken on an eight-person UBS team that previously oversaw $1.25 billion in client assets, planting its 22nd office nationally in Wayzata, outside Minneapolis, and its first in Minnesota. Managing director James Shafer had been at UBS since 2005 and principal Michael Block since 2011, according to BrokerCheck, with vice presidents Joseph Gossett, Pamela Smith and Rachelle Carlson-Oien also making the move alongside three support staff.

The reason the team gives for leaving the wirehouse is worth reading closely. Shafer's statement, as reported, cites technology, support and investment options to carry the practice through its next phase of growth — no transition check, no grid math. That is what a UHNW recruiting conversation sounds like now: a team with multi-generational wealth-transfer clients is weighing whether the new platform can hold the whole balance sheet, including the trusts, private-market positions and tax work that arrive when the founding generation hands over.

NewEdge's corporate structure is built for that handoff. NewEdge Wealth is the upper-high-net-worth channel of NewEdge Capital Group, which also runs NewEdge Wealth Advisors, a partnership platform carrying both 1099 independent contractors and W-2 employees, and sits inside EdgeCo Holdings, majority-owned by the private equity firm Parthenon Capital. The arrangement lets a wirehouse team keep employer-side support while the UHNW brand does the client-facing work; the coverage does not say which channel Shafer's group joined.

Minnesota is the latest pin on a map NewEdge has drawn by recruiting rather than acquisition. NewEdge Wealth has more than 70 advisors and, per our records, $19.9 billion in registered assets as of Sept. 12; it has built out through teams in Tennessee, Georgia, Houston and New Albany, Ohio, most recently taking a Houston group from AllianceBernstein's private wealth division in August that had overseen $2.2 billion. The Wayzata team lands in the same bracket — a 20-year run at the wirehouse, a practice organized around substantial-wealth planning — which puts the choice in a familiar place: which institution holds the client relationship into the next generation, and at what cost to the team's freedom to run its own book.

As this publication has argued, payout is no longer the deciding term in multi-advisor moves; post-search economics and employee-channel support are, and each liftout at this size resets the package the next team is offered. Our August report on a $100 million NewEdge win made the narrower version of that argument: the firm's edge was fit rather than scale. A $1.25 billion book and eight people is the same pitch at a size that no longer reads as an outlier in the recruiting market.

The open question is supply. NewEdge's 22 offices now run from Stamford, its headquarters, to Wayzata, and each one needs a wirehouse or private-bank team willing to move a book built over decades. Office 23 will say which channel feeds the model — another UBS or AllianceBernstein desk, or NewEdge's own W-2 platform growing one from inside.

Reported by the Recruiting & transitions desk from WealthManagement.com. Published . Corrections

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The UHNW recruiting pitch has stopped leading with the check — Private Wealth Daily