Escala poised to overhaul strategy

Private wealth manager Escala Partners is poised for a management overhaul that could see the appointment of a new chief executive, according to people familiar with the matter.

Two senior executives - co-chief executive Pep Perry and investment chief Tracy McNaughton - are expected to leave the firm in June.

Torty Howard will step down from her role as co-chief executive and take on an operations position, the sources said.

Advisory head Ben James is being lined up as the new chief executive.

The sweeping changes form part of Focus Financial's broader cost-reduction strategy, with the New York-listed parent prioritising revenue-generating roles as it intensifies its drive for greater operational efficiency.

It is understood that Escala and Focus are working through their management agreement and sorting how to deal with equity holders as they move to full ownership.

However, Escala's vice-chair Chris Selby has denied any June departures while acknowledging potential future changes as the firm deepens its integration with its American parent.

"If there is a change, it'll be in due course, once we as a business, along with our partners and Focus, come to a greater clarity on how we can further complete the journey started seven years ago," Selby said.

The integration initiative that began seven years ago remains ongoing, with Selby acknowledging the complexity of the process.

"There's a lot of work to be done to figure out how best to do this," he said, suggesting the timeline for completion remains uncertain.

Selby attributed speculation about departures to internal uncertainty, claiming some individuals were "stirring" unrest within the firm.

"There are probably people who are nervous and anxious about change. I won't deny there will be change in the near future, but that change is not happening today," he said while maintaining that no immediate departures were planned.

"The changes haven't been defined yet because we haven't fully bedded down how we are going to ultimately progress in our integration and in our partnering with our parent.

"There's a lot of work to be done to figure out how best to do this, so it works for Focus, works for us and works for all of the advisers."

James is widely regarded as a logical succession choice, having accumulated three decades of experience across investment banking, funds management and research. He has focused exclusively on wealth management for the past 25 years, working initially with global investment banks before co-founding Escala in 2013.

Howard, a former UBS Wealth Management executive, played a pivotal role in establishing Crestone Wealth Management's Melbourne operations before joining Koda Capital and subsequently reuniting with Escala's founders two years ago.

Perry brings more than 25 years of financial services experience, having progressed from adviser roles to running wealth management divisions at Solomon Smith Barney and UBS.

McNaughton joined from UBS Asset Management, where she managed investment strategy, before serving as head of asset allocation at Wilsons Advisory and subsequently accepting the investment chief position at Escala in 2019.

As for Howard, the former UBS Wealth Management manager worked at Crestone Wealth Management, where she was instrumental in setting up their Melbourne office. She later joined Koda Capital before reuniting with Escala's founders two years ago.

Perry began his 25-plus-year career in the financial services industry as an adviser before running wealth management businesses for Solomon Smith Barney and then UBS.

McNaughton also joined from UBS Asset Management, where she ran investment strategy.

After leaving UBS, she was head of asset allocation at Wilsons Advisory before being appointed investment chief at Escala in 2019.