UBS Wealth Management USA has launched an aggressive recruiting initiative aimed at reversing ongoing advisor departures, according to AdvisorHub. The firm is offering select financial advisors a package valued at up to 550 percent of their trailing 12-month revenue ("T-12"), marking a new high in the industry.
AdvisorHub reports that UBS designed the offer for high-producing advisors generating approximately $7 million or more in annual revenue. The package requires a 16-year commitment, by way of a forgivable loan or "prom note." The transition package is structured to include an upfront payment of roughly 250 percent, with the remaining compensation tied to long-term performance incentives.
This offer surpasses prior industry benchmarks. AdvisorHub notes that recruiting deals previously peaked at approximately 435 percent with a 12-year commitment. Competitive pressure has intensified as private equity-backed breakaway firms and major wirehouses have expanded recruiting incentives, with some rival offers reportedly reaching 500 percent for top-performing teams.
AdvisorHub reports that UBS's recruiting push follows a period of instability within its U.S. wealth management business. The firm experienced significant client outflows, with $14.1 billion withdrawn in the fourth quarter. Advisor attrition has also remained elevated, with at least 54 teams managing nearly $52 billion in assets departing in 2025, and additional exits continuing into the current year.
The broader industry continues to escalate recruiting competition. AdvisorHub notes that Morgan Stanley reported approximately $5 billion in outstanding recruiting loans at the end of last year, reflecting a year-over-year increase. UBS reported nearly $1.5 billion in outstanding recruiting loans in the Americas in its most recent earnings disclosure.
Financial Advisor Transitions consults with advisors nationwide regarding employment transition options and strategies to preserve and protect their practices during any transition.
