$1B+ Merrill private-banking duo joins HighTower
Searching for a “transformational business model,” Bank of America Merrill Lynch private-banking veterans David W. Karp and Paul A. Pagnato have joined HighTower Advisors LLC
Searching for a “transformational business model,” Bank of America Merrill Lynch private-banking veterans David W. Karp and Paul A. Pagnato have joined HighTower Advisors LLC.
The pair, which does business as the Pagnato-Karp Group, joined HighTower as managing directors and partners late last month. Both men were previously private wealth advisers at Merrill Lynch Private Banking and Investment Group, where they managed $1.3 billion in client assets.
Mr. Karp’s career with Merrill Lynch dates back to 1997, while Mr. Pagnato had been with the firm since 1992. They are based in the Washington metro area.
The group’s specialty is family office solutions for entrepreneurs, particularly legal and tax planning for those clients.
“We help manage every aspect of our clients’ financial well-being, from paying bills on a regular basis, to cash flow management, to making sure that their properties and entities are running properly,” Mr. Karp said.
The Pagnato-Karp Group is the fourth team from Bank of America Merrill Lynch to join HighTower this year and the first to hail from the Private Banking and Investment Group, said Mike Papedis, managing director for national business development.
Their addition doesn’t mark a change in recruitment strategies for the firm, he said.
“We’re always focused on teams that serve the ultrawealthy,” Mr. Papedis said.
Just last month, the firm added an Indian Wells, Calif.-based trio of financial advisers from Morgan Stanley Smith Barney LLC.
HighTower’s “transformational business model” attracted the group to the firm, particularly since clients will be able to place their assets in custody with a variety of firms, Mr. Pagnato said.
“Previously, they didn’t have a choice,” he said.
“This really provides them a comfort level for the safety of their assets, plus choice and transparency. We’re able to do everything we were able to do before and more,” Mr. Pagnato said.
Prior to landing at HighTower, Mr. Karp and Mr. Pagnato had looked at other opportunities, including joining another wirehouse or opening their own registered investment advisory firm. HighTower’s scale and culture proved the most attractive option.
“You can almost think of it as a family office on steroids,” Mr. Pagnato said.
Selena Morris, a spokeswoman for Bank of America Merrill Lynch, declined to comment on the departures.
Email Darla Mercado at [email protected]
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