Merrill Lynch Recruiting Loan Commitments Jump 47% as Wirehouses Escalate Talent War

Merrill Lynch increased its upfront recruiting loan commitments by nearly 47% in the fourth quarter of 2025 as the firm ramped up its effort to attract experienced advisors from rivals. Wells Fargo's loan total rose 13% over the same period.

The economics of wirehouse recruiting are escalating. Merrill Lynch's total recruiting loan commitments climbed 47% year-over-year in the fourth quarter of 2025, according to data published by AdvisorHub, reflecting the firm's renewed push to attract experienced advisors after years of managed headcount reduction. Wells Fargo's loan total increased 13% over the same period.

Recruiting loans — also called transition assistance packages or forgivable notes — are the primary currency of wirehouse recruiting. A firm extends a lump-sum payment to an advisor who agrees to join and meet production targets over a defined period, typically seven to nine years. If the advisor stays and hits the numbers, the loan is forgiven. If they leave early, they owe the remaining balance.

The jump in Merrill's commitment total is striking because it comes after several years in which the firm explicitly scaled back recruiting activity to focus on retaining its existing advisor force. The reversal aligns with comments made by BofA co-president Alastair Borthwick, who this week said the firm planned to be "more aggressive" in the market for financial advisor talent.

Industry observers say the increase likely reflects both the size and quality of deals being written. Merrill has historically been more selective than its wirehouse peers, focusing on advisors with $500 million or more in AUM. A larger total with a similar number of advisors hired implies bigger individual packages — a sign that the firm is competing directly for large-team talent that previously might have gone to Morgan Stanley, Raymond James, or the independent channel.

Wells Fargo's 13% increase, while smaller in percentage terms, comes on top of what was already one of the more active wirehouse recruiting programs on the Street. The firm has closed several high-profile deals in 2025 and early 2026, including a $6 billion UBS team in Q4 and multiple $1 billion-plus transactions in the first quarter.

Morgan Stanley, which does not publicly break out recruiting loan data, is widely believed to have maintained or increased its commitment levels. The firm has been aggressive in targeted markets including the mid-Atlantic, Southeast, and Texas, where several large UBS and Merrill teams have departed in recent months.

What it means: Package sizes are moving up across the board, particularly for advisors with $500 million or more in AUM. If you've been approached and dismissed the deal economics as unfavorable, the math may have changed. This is also a useful data point for advisors negotiating retention agreements: your firm knows what the competition is paying.