CHARLOTTE, (Reuters) - U.S. Bancorp (USB). North Carolina(N) plans to launch a new unit for the ultrawealthy in the fourth quarter of offices in Denver and the city of Minneapolis headquarters.
The unit, which will be called ascension Private Capital Management, will focus on the customers at least 25 million dollars in assets to invest. Ascension will participate in a rapid growth but the fragmented market against other banks, brokerages and independent wealth managers and family offices.
"We believe that the time has come," said Mark Jordahl, President of US Bancorp asset management. "There is a competitor who has a dominant position on the market."
Commercial banks have long since the arms of private bank serving the needs of trust and the estate of wealthy clients, but are in expansion of relatively low margin in the quest for a stable source of ready climate not correlated to the widest of income.
U.S. Bancorp plans eventually to run six offices of ascension, in the Midwest, said Michael Cole, Chairman of the unit. Its ultimate goal is to use the 60 advisers and support staff.
Wealth management and values securities services division managed by Jordahl manages approximately $ 60 billion of client assets and powered the $ 50 million of net income in the first quarter. This represents approximately 5% of the total quarterly gains of US Bancorp.
About a third party assets serviced by the division may be classified as coming of ultra-high net of customers, said Jordahl.
Jordahl is the management company fortune growing at the rate of "low double-digit" and did not exclude acquisitions.
"We are open to that, but the cultural adjustment would be very important," said.
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