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Photo by James Sanna | Banker & Tradesman Staff
Boston Private has opened a new office in downtown Miami as part of its strategy for growing assets under management to $50 billion in its wealth management division by 2022.
Located in the Four Seasons Hotel Office Tower at 1441 Brickell Ave., the office will service high-net worth individuals and family offices, as well as endowments and foundations.
“Miami is an important wealth market in the country and we are thrilled to bring our thoughtful advice and exceptional service to clients in the area,” Boston Private CEO Anthony DeChellis said in a statement announcing the new office. “We look forward to helping more Florida-based clients navigate the challenges and opportunities that come with substantial wealth.”
Paul Simons, president of private banking, wealth and trust, said in an email to Banker & Tradesman that opening a Miami office was a strategic decision to support Boston Private’s ambitious growth agenda. South Florida is a key wealth market in the U.S., Simons said, providing a natural fit for the type of advice and expertise the firm offers.
Boston Private entered the South Florida market with a Palm Beach Gardens office in 2014, and Simons said the Miami location complements this existing office. He added that the opportunity to hire talent in the Miami area made for a compelling opportunity.
“We believe we have an opportunity to provide value to the Miami market that isn’t being offered by other wealth management firms,” Simons said. “We’re able to couple the capabilities of a large institution with the superior service of a boutique, filling a sweet spot for clients who aren’t being adequately served.”
Crossover with Boston Clients
Simons said there is crossover among the clients served in Boston, New York, Miami and Palm Beach Gardens, in part because many high and ultra-high-net worth individuals are moving from the Northeast to Florida. He said the clients in both markets also have a lot in common.
“Across all of the markets we serve, our clients share more similarities than differences,” Simons said. “They care about the well-being of their families and their businesses. They’re interested in working with partners who have the technical expertise, experience and connections that can help them simplify their lives and reach their goals. We have proven experience helping clients like them navigate the challenges and opportunities that come with substantial wealth.”
Boston Private announced its growth goals in May 2019 but saw outflows from the wealth management division in the fourth quarter.
In the fourth quarter earnings call, DeChellis said Boston Private generated $407 million in new wealth management business. The firm’s net flow were $209 million, attributed to a departing adviser and to a trust Boston Private knew would be terminating.
The wealth management division had total assets under management of $16.8 billion in the fourth quarter compared to $16.2 billion in the third quarter and $15.9 billion in the fourth quarter of 2018.
Net income for the fourth quarter was $21.2 million compared to $20 million for the third quarter of 2019 and $33.3 million for the fourth quarter of 2018. The net income per diluted share was $0.26 in the fourth quarter compared to $0.24 in the third quarter and $0.42 in the fourth quarter of 2018.
“During the quarter, we increased our client advisor count, while achieving key technology milestones,” DeChellis said in a statement announcing its fourth quarter earnings. “As we move into 2020 and execute on our growth initiatives, investing in talent and technology will remain the key priorities to achieving our strategic objectives.”
Boston Private attributed the decrease in year-over-year earnings primarily to a gain on sale related to the divestiture of Bingham, Osborn and Scarborough LLC in the fourth quarter of 2018.
