The deal gives Merrill a new roster of rich clients: First Republic is a private bank whose average client has liquid assets of $8 million.Most of First Republic's clients are “venture-capital chiefs, hedge-fund managers, real-estate magnates, entertainers and entrepreneurs.”
The deal also gives Merrill access to First Republic’s lending products. First Republic specializes in loans for big mansions, jets and yachts. If a wealthy Merrill client wants a mortgage for a new $10 million home in Palm Beach, or a $40 million Gulfstream, the client can now tap First Republic’s balance sheet.
The Wealth Report notes that the deal follows last year's acquisition of U.S. Trust by Bank of America.