Bernstein Private Wealth Management Announces Expansion of Ultrahigh-Net-Worth Platform
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Insights
The strategic expansion of Bernstein Private Wealth Management's UHNW Platform signifies a targeted approach to addressing the unique needs of the ultrahigh-net-worth market segment. This move potentially capitalizes on the trend of personalized and comprehensive wealth management services, which are increasingly in demand among affluent clients. By introducing a low client-to-professional ratio and a dedicated UHNW Service Team, Bernstein is positioning itself to offer a more intimate and tailored client experience.
Moreover, the appointment of senior executives with specialized roles such as Director of Strategic Partnerships and Director of Credit indicates a deliberate effort to enhance and diversify the firm's service offerings. This could lead to stronger client relationships and open up new revenue streams through strategic partnerships and credit solutions.
From a market perspective, this expansion could be seen as a competitive move to capture market share in the lucrative UHNW segment, which has been experiencing growth. As wealth continues to consolidate at the upper echelons, wealth management firms that can provide holistic services, including family governance and legacy planning, are likely to be more resilient and enjoy higher client retention rates.
The announcement by Bernstein Private Wealth Management reflects a strategic investment in human capital and resources that can be expected to have a direct impact on the firm's financial performance. The emphasis on bespoke solutions and centralized resources for UHNW clients is an indication of a high-margin service offering that can potentially enhance the firm's profitability.
Given the average client tenure of 12 years and the control of over $37.9 billion in total assets, the initiative to expand and focus on family governance research may also lead to an increase in assets under management (AUM) over time. This is a critical metric for investors as it directly affects management fee revenue, which is a key income stream for wealth management firms.
Additionally, the title change from 'financial advisors' to 'wealth advisors' reflects a strategic rebranding that aligns with industry trends toward a more holistic wealth management approach. This rebranding could improve the firm's positioning in the market and potentially attract new clients seeking comprehensive wealth management services.
The expansion of Bernstein's UHNW Platform and the creation of a specialized service team may have regulatory implications, particularly in the areas of compliance and fiduciary responsibility. The focus on family governance and legacy planning requires a deep understanding of estate laws, tax regulations and trust structures, which are complex and vary significantly across jurisdictions.
The appointment of experienced executives with a background in credit and strategic partnerships also suggests that Bernstein is likely to navigate complex legal landscapes, including credit agreements and partnership contracts. Their expertise could mitigate legal risks associated with the expansion of services and ensure compliance with financial regulations, which is crucial for maintaining the firm's reputation and avoiding costly legal disputes.
For clients and investors, the legal expertise embedded in the UHNW Platform can provide reassurance that wealth management strategies are not only financially sound but also legally robust, offering an additional layer of security to their investments.
Firm introduces plans to expand existing team and services catering to UHNW clientele
Bernstein's UHNW Platform currently serves more than 1,290 individuals and families with an average client tenure of 12 years and more than
"We saw a need to consolidate our existing expertise in a center of excellence and more proactively get ahead of the complexities facing our wealthiest clients with a dedicated service team and additional resources personalized to this group," said Onur Erzan, Head of the Global Client Group and Private Wealth at AllianceBernstein. "Clients today are increasingly looking for a unified wealth plan centered around legacy with the understanding that complexity is not always financial. That's why our evolved UHNW Platform offers a more holistic approach to not only manage wealth but the anxieties that come with that wealth."
Under the leadership of Aaron Bates, a 25-year veteran of the firm, the Platform will sit at the nexus of the firm's existing UHNW, Family Offices and Global Families services, bringing together Bernstein's breadth of expertise across practice areas into one centralized resource. The Platform will continue to leverage Bernstein's extensive wealth planning research, including new insights into family governance such as its latest "Family Governance: Lessons from Families Who Have It Figured Out."
The newly created UHNW Service Team will be exclusively available to clients of the UHNW Platform. Designed to have a low client-to-professional ratio and centralized to elevate and innovate best practices, the team will ensure a fully personalized experience and prioritize supporting UHNW clients as they plan for and live with their wealth.
"Far too often, the financial advice model ends once an investment or transaction is complete," said Tara Popernik, Senior National Director of UHNW Services. "In our view, however, that's when it truly begins, as wealthy individuals and families look for something more than just investments: they need help navigating the transition from one chapter to the next as well as monitoring and maintaining the entities and strategies they initially set up to achieve their goals. Bernstein's decades of expertise in planning for these transitions and executing on that plan will continue to grow with our expanded team."
In coordination with the expansion, Bernstein has appointed three senior executives:
- Amanda Bohr, Director of Strategic Partnerships. Bohr is responsible for spearheading the Platform's partnerships strategy, expanding the UHNW service offering to provide valuable, collaborative solutions to clients beyond Bernstein's core services. Bohr has 13 years of cross-industry experience, including eight years of Bernstein tenure, and holds a graduate degree from Northwestern University's Medill School for Journalism, Media & Integrated Marketing Communications.
- Jeremy Lam, Director of Credit. In his role Lam will be sourcing, solidifying, and interacting with all of Bernstein's credit partners with a view to taking an advice-led approach to helping clients solve liquidity needs through third-party partnerships. He brings over 24 years of lending experience in the UHNW space and previously held senior credit roles at Morgan Stanley, First Republic, and JP Morgan. Lam attended Brigham Young University.
- Emily Neubert, National Director of UHNW Services. Neubert will lead and develop the UHNW Service Team as they increase the value and personalized service delivered to UHNW clients. She will also drive long-term growth of the Platform and continue to oversee Family Governance for the firm. Neubert is a 11-year Bernstein veteran with 19 years of industry experience. She is a CFP® professional and holds advanced certificates from the Family Firm Institute in Family Business Advising and Family Wealth Advising. Neubert received a degree in Economics from Penn State University.
Additionally, as of this month, Bernstein's over 230 advisors will undergo a title change from "financial advisors" to "wealth advisors" as part of the firm's evolution. On this change, Rick Meyers, Head of Client and Advisory, added: "We are redefining wealth management. For most clients, their Bernstein advisor is so much more than someone to turn to for their investments. We feel this title change is a reflection of how our advisors holistically counsel our clients on their assets, complexities, and successes to come, rather than a singular investment or moment in time."
To learn more about Bernstein's expanded UHNW Platform, visit Bernstein.com.
About Bernstein Private Wealth Management
Bernstein Private Wealth Management advises ultrahigh- and high-net-worth clients on planning for—and living with—the complexities that come with significant wealth. Bernstein is distinguished among major wealth managers by its expertise in navigating life's transitions through a holistic approach. A flexible process—paired with innovative research, sophisticated modeling, and cutting-edge investment solutions—also set Bernstein apart. Headquartered in Nashville, Bernstein is a business unit of AllianceBernstein, which ranks among the largest investment managers in the world, with offices in major world markets across 26 countries and jurisdictions and over
For additional information visit Bernstein.com.
*As of December 31, 2023
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SOURCE Bernstein Private Wealth Management
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