After acquiring Credit Suisse, UBS (UBSG.S) is recruiting wealth managers for wealthy Americans in the U.S.

In the year’s first half, UBS hired 50 financial advisers from Bank of America’s Merrill Lynch, JPMorgan Chase’s recently purchased First Republic Bank, Citigroup, and Wells Fargo. Thirty followed the March Credit Suisse deal. At Merrill, BG Group controlled $2.5 billion.
UBS became the second-largest wealth manager after acquiring Credit Suisse. It is the fourth largest wealth manager in the U.S., where American banks dominate ultra-rich asset management.

“The U.S. is the largest wealth market globally, and in recent years there has been unprecedented growth,” UBS’ global wealth management president Iqbal Khan told Reuters. Khan, a bank executive board member, said, “Investing in and building our business here is a top priority.”

Khan met with high-net-worth clients in southern California on June 12, the day UBS concluded its historic acquisition with Credit Suisse, to emphasize the importance of the business. He led a financial adviser event.

Credit Suisse quit U.S. private banking in 2015 and relocated around 275 financial advisers to Wells Fargo, so the acquisition did not affect UBS’ wealth division.

UBS’ U.S. financial advisers have grown 25% in the past three years. In late March, the bank had 6,147 advisers across the Americas, but it did not say how many were American.

Investment banking and trading are volatile, so global banks spend more on wealthy businesses with ongoing fees. Most target ultra-high-net-worth clients, the fastest-growing group.

John Mathews, UBS America’s head of wealth management, expects the cohort of people with more than $30 million in investable assets will expand 10% over the next five years as they accumulate wealth.

“We’ve focused on attracting and retaining advisers who are skilled in serving this population,” he said.

A Credit Suisse survey last year found 264,200 millionaires globally with over $50 million net worth. Over 50% live in the U.S.

UBS relies on wealth. Morningstar analyst Johann Scholtz predicts the bank will make 63% of its revenues from asset management in four years.

UBS must focus on baby boomer wealth transfer to boost its U.S. position. The bank is age- and race-diversifying its advisers and hosting multigenerational wealthy family events.

UBS expects younger Americans to inherit $18 trillion over the next seven years and $84 trillion over the next two decades.

Khan, who joined UBS from Credit Suisse in 2019, predicted the largest wealth transfer over the next 20 years. The chance to service a new generation of clients is immense.