Tuesday, November 29, 2022
HomeWealth ManagementConcurrent Leaves Raymond James to Type Multi-Custodial Platform

Concurrent Leaves Raymond James to Type Multi-Custodial Platform


Concurrent Advisors is dropping its affiliation with Raymond James to restructure as a multi-custodial, hybrid registered funding advisor over the approaching months, the agency introduced Tuesday, calling the transfer “an important subsequent step within the agency’s mission to foster advisor entrepreneurship.”

Tampa, Fla.-based Concurrent, an workplace of supervisory jurisdiction with Raymond James’ impartial dealer/vendor, was established six years in the past as a know-how and providers platform for impartial monetary advisors. Service provider Funding Administration, a New York–based mostly non-public partnership that gives progress capital and different assist to impartial monetary providers corporations, took a minority, non-controlling curiosity within the agency final summer season.

Concurrent is now restructuring to present its advisor associates entry to a broader vary of funding methods, merchandise, and know-how, based on co-founder Nate Lenz. Printed studies indicated that Raymond James made the choice to separate from Concurrent, however Lenz stated the choice to go away and pursue different custodial relationships had been an “ongoing dialogue” and that the dealer/vendor finally initiated an acceleration of its departure.

“We have been working collaboratively with them on the timeline to have the ability to facilitate this,” he stated.

“Raymond James has determined to finish its relationship with Concurrent Advisors and is in discussions with the department homeowners concerning an orderly dissolution of our relationship,” stated Justin Mayfield, a spokesman for Raymond James, in a press release. “In keeping with Raymond James’ values and commitments, we’ll assist these advisors who need to transition with Concurrent in addition to those that want to stay straight affiliated as impartial contractors with Raymond James.”

A supply near the RIA, who declined to be named, advised that Raymond James could also be threatened by the rising energy of bigger, extra democratically run RIA partnerships and, seeing the writing on the wall, opted to finish the connection first. “It’s type of such as you don’t need to be the one which will get dumped first,” they stated. “It’s a little bit bit like highschool, in all probability.”

Different Raymond James advisors who’ve gone multi-custodial, akin to Steward Companions, in the end retained the agency as a custodian, however Concurrent won’t. Lenz stated it is because different custodians are higher positioned to serve SEC-registered advisors, which would be the focus of the brand new hybrid RIA going ahead.

“We see the advantages of working on the extra conventional RIA custodial platforms versus a dealer/vendor platform,” stated Lenz. “Which is why we have checked out every little thing and we have determined that we need to step away from the impartial dealer/vendor house and get right into a extra really fiduciary atmosphere.” The agency has been in talks with Pershing, Constancy and Charles Schwab, he stated.

Concurrent will keep a dealer/vendor affiliation with PKS Investments, based on Lenz, however will focus totally on growing a best-in-class platform providing for impartial RIAs who need to keep private branding and tradition whereas leveraging the capabilities, capital and mental capital a scaled partnership can present. Fairly than growing a proprietary end-to-end platform, Concurrent will depend on distributors and API connectivity to offer advisors and their finish shoppers with a spread of service choices.

“Our advisors can have better freedom to decide on know-how and repair platforms tailor-made to their distinctive model identities and consumer wants,” Concurrent co-founder Mike Hlavek stated in a press release. “We’re excited to assist our advisors with a good wider number of integrations with market-leading planning instruments, buying and selling options, TAMPs, various platforms and CRMs.”

“They will have choices round their custodian that they select,” stated Lenz. “From an funding platform standpoint, they will have the ability to achieve entry to a broader resolution set of various managers. We’re additionally enthusiastic about what’s attainable on the choice funding aspect of issues. So, I believe the ethical of the story is that, in our present state, we have been captive to the one custodian and a singular set of know-how options, you realize, singular product due diligence. That is going to actually open the doorways in all of these totally different areas to create extra selection for our groups and we’re actually enthusiastic about that.”

The transfer to a number of custodial companions won’t change the basic nature of Concurrent’s partnership with its affiliated advisors, stated Lenz. Advisors will nonetheless have entry to a platform of 38 devoted operations employees for planning, know-how, digital administration and transition assist, and Concurrent will proceed to supply shared capital and strategic assets by way of its Service provider partnership. Lenz stated that there will probably be no disruption in service or applied sciences and that the newly structured platform ought to be operational by subsequent spring.

Service provider’s funding enabled Concurrent to speed up inorganic progress initiatives and has been instrumental in serving to to implement an fairness swap possibility that three quarters of associates have already accepted. In 2022, the corporate has onboarded 25 monetary advisors representing greater than $3.4 billion in managed belongings. Concurrent now has 145 advisors working from 66 places across the nation and managing practically $13 billion in consumer belongings, with $12 billion extra beneath advisement.

Lenz and Hlavek count on that the restructuring will “open a sea of M&A and advisor recruitment alternatives,” and have plans to achieve $15 billion in AUM by 2023—and as a lot as $40 billion over the following three to 5 years. “There are a variety of aspiring aggregators available in the market—corporations with $1 to $3 billion in belongings and 5 to 25 advisors that do not essentially have the size to assemble the platform or to achieve the pricing that we do,” stated Lenz. “I believe that we’ll begin to actually get aggressive on the acquisition, however we need to guarantee that we’re doing it in the fitting method and with the fitting folks.”

“Concurrent is aware of our advisors want one of the best instruments and most responsive service companions to succeed as fiduciaries and entrepreneurs,” Lenz stated. “By eradicating the boundaries imposed by the single-custodian house and an antiquated wirehouse mindset, we have now uncapped the expansion potential of advisors powered by our platform.”

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