See Table of Contents for Tiburon's Upscale Channels Research Report

Tiburon Strategic Advisors, a market research & strategy consulting firm serving a wide variety of financial institutions and investment managers, is pleased to announce the release of its new research report on Upscale Channels. This research release summarizes some of the report's key findings.

The purpose of this report is to provide readers with an initial understanding of the various upscale channels, including private banks, investment banks & boutique brokerage firms, separate account managers, investment consultants, sports agents & business managers, and family offices. While these firms lack a common history, they share a common purpose of serving high net worth consumers. This is the second draft of Tiburon’s research on this topic.

Tiburon’s first draft of this report was published in 2008; that draft consolidated prior Tiburon research into one report.

This is Tiburon’s second draft of this report; this draft aligns the report’s structure with that of other Tiburon research reports, includes a refined introduction highlighting all markets & distribution channels, spins-off Tiburon’s equally thorough Processing Firms research report, and enhances the profiles of some core Tiburon clients & other firms, including City National Corporation; Evercore Partners; Keefe, Bruyette, & Woods; Lydian Trust Company; Neuberger Berman Management; Sandler O’Neill Partners; and WR Hambrecht + Company

Key Findings
This report has a long list of interesting facts to share:

Evolution of Financial Advisor Sales & Marketing Strategies
This chapter outlines the evolution & market history of financial advisor sales & marketing strategies:

Market Growth

  • The upscale channels firms have slightly more than 72,000 employees
  • The upscale channels firms have just over 400 relationship managers
  • The upscale channels firms serve just over 4,500 clients

Leading Upscale Channels Firms

  • Investment banks account for the greatest number of firms in the upscale channels with 24 firms
  • Private banks account for the greatest number of offices in the upscale channels with over 150 offices
  • Investment banks & boutique brokerage firms account for the greatest number of employees in the upscale channels with over 51,000 employees
  • Investment banks & boutique brokerage firms account for the greatest number of relationship managers in the upscale channels with over 400 relationship managers
  • Investment banks & boutique brokerage firms serve the greatest number of clients in the upscale channels with nearly 20,000 clients

Market Segmentation
This chapter outlines market segmentation in financial advisors sales & marketing strategies:

Private Banks

  • There are 15 private banks
  • Private banks have over 150 private banking offices
  • Private banks have almost 15,000 employees
  • Private banks serve over 3,000 clients
  • Northern Trust leads the private banks with branch offices in 18 states
  • Northern Trust leads the private banks with 82 branch offices, with Wilmington Trust following with 47 offices
  • Northern Trust leads the private banks with nearly 10,000 employees, almost 400% more than those at Wilmington Trust or US trust
  • Glenmede leads the private banks with 1,500 of clients, followed closely by Bessemer Trust with 1,300 clients. Pitcairn has 352 clients
  • Northern Trust leads the private banks with $1.8 trillions assets under administration
  • Northern Trust leads the private banks with over $300 billion in assets under management, followed by US trust with only one-quarter the assets
  • Northern Trust leads the private banks custody $1.5 trillion
  • Northern Trust leads the private banks with nearly $700 million in net income, almost 500% above that of Wilmington Trust

Investment Banks & Boutique Brokerage Firms

  • There are 24 investment banks & boutique brokerage firms within the upscale channels industry
  • There are a 114 investment banks & boutique brokerage offices within the upscale channels industry
  • There are slightly over 51,000 investment banks & boutique brokerage employees within the upscale channels industry
  • There are 420 investment banks & boutique brokerage relationship managers within the upscale channels industry
  • Investment banks & boutique brokerage firms have $968 billion assets under management
  • Investment banks & boutique brokerage firms generate $16.5 billions in revenues
  • Investment banks & boutique brokerage firms earn $11.3 billion in net income
  • Goldman Sachs leads San Francisco bay area investment banks in the number of mergers & acquisitions with 171
  • Goldman Sachs leads San Francisco bay area investment banks in the value of IPOs underwritten with over $13 billion
  • Goldman Sachs leads San Francisco bay area investment banks in the value of mergers & acquisitions with nearly $700 billion

Separate Account Managers

  • Separate account managers have 16 offices
  • Separate account managers have 2,700 employees
  • Brown Brothers Harriman leads the separate account managers with 2,700 employees
  • Brown Brothers Harriman leads the separate account managers with $40 billion assets under management

Investment Consultants

  • Investment consultant companies have nearly 2,000 employees
  • Investment consultants serve nearly 1,500 clients
  • Investment consultants have $614 billion assets under management
  • Investment consultants generate nearly $1 billion in revenues
  • Russell Investment Group leads the investment consultants channel with 1,800 employees
  • Callan Associates leads the investment consultants channel with 500 clients.
  • Willshire Associates leads the investment consultants channel with $250 billion assets under management
  • Russell Investment Group and the former Barra Rogers Casey each advised over $500 billion in pension assets

Sports Agents & Business Managers

  • Sports agents & business manager firms have 1,000 employees
  • Sports agents & business managers have $26 billion assets under administration
  • Assante leads the sports agents & business managers channel with 1,000 employees
  • Assante leads the sports agents & business managers channel with $26 billion assets under administration

Family Offices

  • Family offices have 862 employees
  • Family offices have $4.5 billion assets under administration
  • Family offices have $3.0 billion assets under management
  • Johnson financial group leads the family offices channel with 850 employees
  • Johnson Family Group leads the family offices channel with $4.5 billion assets under administration
  • Johnson Family Group leads the family offices channel with $3.0 billion assets under management
  • The average family office has 8 employees
  • The average family office supports 26 families
  • Family offices assets under management range from $50 million to $5 billion
  • Almost two-thirds of family offices have at least one in-house investment person
  • There are an estimated 4,000 family offices overseas

Future Predictions for the Upscale Channels Industry
This chapter outlines the future predictions for the upscale channel industry:

  • Increasing growth in the upscale channels industry
  • Evolving account minimum strategies
  • Continuing objective to deliver comprehensive offers
  • Increasing use of alternative investments
  • Continuing search for the ultimate technology solution
  • Increasing industry consolidation

To better understand the developments for Upscale Channels, executives can purchase Tiburon's An Initial Overview of the Upscale Channels: Seeking to Serve the Ultra Affluent research report where the key findings highlighted above are covered in greater detail. Please contact Sarah Sage at SSage@TiburonAdvisors.Com or 415-789-2540.