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Morgan Stanley Expands Nonresident Wealth Business

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Morgan Stanley continues to expand its nonresident wealth management business in the U.S. and has recruited two senior leaders who used to work for Credit Suisse.

It says it recently hired Gabriela Teran to be a managing director and head of international development in New York and Paul Arango to serve as a managing director in Miami, supporting client development and other efforts of its international client advisors (or ICAs).

Earlier, Teran was head of Credit Suisse Latin America’s New York office (2009-2016) and previously held various roles in branch leadership at Merrill Lynch. Aranjo led Credit Suisse Latin America U.S. after being an advisor at Goldman Sachs (1985-2001).

“During the past 18 months, International Wealth Management (IWM) at Morgan Stanley has established an identity while strengthening risk and control frameworks. Under the leadership of our International Wealth Office (IWO) managers, and through their focus on our specialized advisors and principal jurisdictions, we have seen significant growth in our non-U.S. resident (NRC) business,” explained James Jesse, head of IWN, in a memo late last week to the group.

The nonresident wealth business now has more than $100 billion in assets, Jesse says, and has “attained a market-leading position within this important client segment.”

In the near future, the executive adds, the group plans to introduce “a strengthened organization structure and additional resources focused on product, service, platform and growth initiatives geared toward addressing the specialized needs of international clients.”

Recent Growth

Last week, Morgan Stanley says it opened a third office in Miami to serve its Latin American clients. The office includes 13 teams of international client advisors, who have close to $7 billion in assets under management, according to the firm. Most of the advisors recently joined Morgan Stanley from Credit Suisse, which formerly occupied the office. The office employs 61 people in total, including 22 client advisors.

Morgan Stanley’s total wealth management business includes 15,800 advisors with some $2 trillion in client assets, $90 billion of which are owned by nonresident clients who work with about 400 ICAs in 12 International Wealth offices worldwide.

In December, Morgan Stanley reported that it stuck a deal to exclusively recruit Credit Suisse advisors in the U.S. who focus on Latin America, according to The Wall Street Journal. The group included 35 advisors, who manage some $16 billion in assets or about $457 million on average, the paper said; the reps each generate close to $4 million in yearly fees and commissions.

As of December, Morgan Stanley’s operations with Latin America-focused reps included 275 advisors who generated $275 million in annual revenue and had $45 billion in assets under management, the paper added.

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