Raymond James completes takeover of Deutsche Bank's US Wealth arm

06 October 2016 Consultancy.uk 3 min. read

The deal that saw Raymond James buy Deutsche Bank Wealth Management’s US Private Client Services Unit has been closed. The new division, which has been integrated into its Alex. Brown arm, supports the firm’s private wealth business growth. In addition, the deal sees Raymond James and Deutsche Bank Wealth Management enter into a strategic distribution arrangement.

Deutsche Bank Wealth Management, as part of its Strategy 2020 goals, announced that it would be divesting from its US Private Client Services Unit in a bid to make the organisation “simpler and more efficient”, with renewed focus on meeting the needs of Ultra High Net Worth individuals ((UHNWI) in the US. The bank found a buyer for the unit and its more than 200 financial services advisors and consultants last December: Raymond James. As part of the acquisition Raymond James took over the Alex. Brown brand, which was born in 1800 with the founding of the first investment bank in the US.

Raymond James completes takeover of Deutsche Bank Wealth Management unit

The deal was recently closed, seeing 193 staff transfer to a new Raymond James division, branded Alex. Brown. The newly rebranded entity will continue to have a strong relationship with its former owner Deutsche Bank, as it enters into a strategic distribution arrangement with Raymond James for “equity new issue securities” for seven years. Thereby, Raymond James gains access to “new alternative investments and other sophisticated investment solutions”, allowing it to better serve UHNWI clients. Alex. Brown has a US footprint of 16 offices.

Haig Ariyan will lead the new division – he was formerly the co-head of Deutsche Bank Wealth Management Americas. He serves as President, working closely with Raymond James and its Associate President Tash Elwyn, and reports directly to Dennis Zank, Chief Operating Officer of Raymond James.

Raymond James CEO Paul Reilly, says, “This combination continues our focus on strategic additions to augment consistent organic growth while also complementing our core private wealth business in geographic areas targeted for expansion. That such a large percentage of legacy advisors agreed to join Raymond James as part of this agreement speaks highly of our values-oriented culture and the sophistication of our offerings.”

Raymond James' COO, Dennis Zank, adds: “Raymond James’ client-first, advisor-centric culture combined with highly regarded professionals, industry-leading advisor technology and a full array of investment products creates a unique offering in the financial services industry”. He further adds, “We’re pleased to welcome our new Alex. Brown colleagues to the firm as the latest example of our success in attracting and retaining the industry’s top advisors.”