Wall Street firm says these families have institutional needs
Almost 300,000 people work for JPMorgan but among the headcount at this huge global banking business is an elite team of just 36, spread across North America, Europe, and Asia Pacific, with a focus on an equally elite client base.
Called Wall 23, a nod to the location on Wall Street of its famous former headquarters known as the JPMorgan Building, this small team are there to support only around 700 families across the world.
These are no ordinary families of course; they have a combined net worth of US$4.5 trillion and are among the 0.01% of the richest people on the planet. The unit has been built quietly over the past few years to give J.P. Morgan the clout it needs to serve this ultra-high-net-worth cohort.
Having recently acquired First Republic Bank, JPMorgan’s CEO Jamie Dimon acknowledged the importance of the top end of the firm’s wealth management business.
Institutional needs
For JPMorgan veteran Andy Cohen, the opportunity is clear as more of the world’s wealthiest families choose to operate through family offices and therefore have needs more like institutional investors.
“My specific charge is with large, multinational families and family offices,” Cohen told BNN Bloomberg. “They have institutional needs.”
He added that their portfolios typically include a mix of public and private assets, real estate, private deals, and philanthropic interests.
Wall 23 is led by Cohen along with other wealth executives and the elite unit has been hiring in key locations including Paris, Hong Kong, London, and San Francisco. Around half of the unit’s clients are in the US.
Wealth transfer
As part of JPMorgan Private Bank – which last year added about one new client a day with assets of $100m or more - Wall 23 provides select families with access to the firm's intellectual capital, balance sheet and deal flow, offering direct access to the Corporate & Investment Bank.
Part of the challenge of working with such wealthy clients is managing wealth transfer and in a recent media release, Cohen notes that there is no ‘one size fits all’ in that regard.
"As families expand and transfer their wealth and legacy, principals at the helm feel that providing the next generation with more flexible choices allows them to both shine and better benefit the family based on their unique strengths," added Cohen. "A common theme is that they don't want anyone to feel forced on to one singular track."
Philanthropy and impact
Another key element to managing the fortunes of the world’s wealthiest families is their desire to do good with their money.
"For most families, the idea of 'giving back' is no longer a question of just donating money," said Cohen. "Most families take a holistic approach that helps shape family charitable, business and investment decisions, focused on applying their families' values and missions across all their various avenues of capital."
In the firm’s interviews with family members, 74% are philanthropically motivated to make a lasting local or global impact and half are considering sustainable investing as part of their future investment plans.
