Going to ask a real simple stupid question here.
What do folks that work in private banking at somewhere like J.P. Morgan actually do, day to day?
(like someone at the VP level)
I really have no idea.
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At the VP level, you will already have reached the "fork in the road" requiring you to choose a path of Relationship Management (i.e. the "Private Banker") or Portfolio Management. There are many steps within each path. The big money is in the relationship mgmt side but both pay really well. Think of the RM as "the quarterback" for his client. The portfolio people will be the ones actually managing the money, choosing managers, building portfolios, supporting the RM.
But what do they actually do? RMs and PMs alike
RM plays golf with rich guy. Rich guy gives money to RM. RM gives said money to PM. PM puts it in.. HFs, PEs, market funds, fixed income products, etc, and sets up cash mgmt stuff? Sounds like a great gig tbh
So an RM will learn about the many facets of Private Banking (Investment Management, Tax Planning, Trust Services, Credit / Lending). He will likely not need to be an expert in nay but a good generalist in each. Applies that knowledge to the client base to steer bank resources to solve problems for client. Network with PE and Venture folks for potential liquidity events. Service existing clients regarding all the business lines as "go to". The individual business lines will then have specialists who work in each discipline to provide the specific expertise needed. Part of an overall team as they are quite interdependent and work with a fairly to very sophisticated client. Can't say this enough- the RM has to have a great business acumen and high level EQ to go along with the IQ. Not easy to build, deepen and maintain these relationships.
How much can RMs make and the vp level and higher? Are you talking about for a place like JPM?
Formerly at a firm like JPM PB, now in AM. VP/ED/MD base salaries are typically around 200/300/400ish with a 25k bonus for every 5 million in new money brought in. This is split between the relationship advisor and the investment manager (varies because some teams/clients while they do have a banker, the flows are typically driven by the investor in which case the investor gets the bigger share). So lets say there was 100 million in flows brought in. That is a 500k bonus say split 60/40 between the RM and the Investor. From what I have seen at JPM, the average VP is usually able to get to 300-400K TC, ED at 400-500K, and MD at 600K+ with quite a few actually hitting the 800k mark. The flows are also structured in a way where you don't get hit if an inherited client from an advisor that left counts against you.
Not in PB but I’ve seen like 1,000 people on LinkedIn who work as PB analysts at JPM but only like 10 who are VPs+.
Not sure if my initial sight is wrong but it appears that climbing the ladder in PB has higher attrition than even IB
Unde voluptatum quo rerum et qui beatae laudantium. Sunt saepe at dignissimos quaerat sit.
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