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Raymond James Parts Ways With $13B Concurrent Advisors  

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What You Need to Know

  • Concurrent, an OSJ, says it is restructuring as a multi-custodial, hybrid RIA.
  • Raymond James says it will support those advisors who want to transition with Concurrent as well as those who wish to remain directly affiliated as independent contractors.
  • The Concurrent restructuring will be done in phases between now and early 2023, it says.

Raymond James and Concurrent Advisors, its affiliate based nearby in Tampa, Florida, have split up and Concurrent is restructuring its business as a multi-custodial, hybrid registered investment advisor, the companies said Tuesday.

“Raymond James has decided to end its relationship with Concurrent Advisors and is in discussions with the branch owners regarding an orderly dissolution of our relationship,” a Raymond James spokesperson told ThinkAdvisor.

“Consistent with Raymond James’ values and commitments, we will support those advisors who want to transition with Concurrent as well as those who wish to remain directly affiliated as independent contractors with Raymond James,” the spokesperson said.

Meanwhile, Concurrent issued a news release on Tuesday saying its restructuring as a multi-custodial, hybrid RIA represents a “crucial next step in the firm’s mission to foster advisor entrepreneurship.”

Concurrent, which has served as an office of supervisory jurisdiction, was started in 2016 and is backed by investor Merchant Investment Management. Concurrent served 145 advisors in 66 offices with $12.7 billion in assets under management) and over $12 billion under advisement as of July 6, it said.

The Concurrent restructuring “will take place in phases between now and early 2023,” and give the firm and its advisor affiliates “access to a broader range of investment strategies, products, and technology to sustain their competitive edge as business owners,” Concurrent said in its announcement.

“The families and institutions that rely on Concurrent-powered advisors for independent, fiduciary service will ultimately benefit from a more complete range of tools and services made possible in a multi-custodial organization,” it said.

The shift to multiple custodial partners “will not change the fundamental nature of Concurrent’s partnership with its affiliated advisors,” it said. “Advisors will still tap into a platform of 38 dedicated operations staff for planning, technology, virtual administration, and transition support.”

The firm will also continue to offer shared capital and strategic resources, “made possible through Concurrent’s partnership with Merchant,” it noted.

Concurrent has onboarded 25 financial advisors representing more than $3.4 billion in managed assets so far in 2022, it says.

“Our team and the advisors we support should be proud of the great work we have achieved so far,” Nate Lenz, Concurrent co-founder, said in a statement. “The success we have earned together made it possible for us to pursue the next stage of our growth, at a time when advisors need every advantage to outpace a volatile environment and guide their clients to better outcomes.”

The multi-custodial sector will magnify Concurrent’s advantages while also opening a stream of M&A and advisor recruitment opportunities for its advisors to grow their own businesses, according to Mike Hlavek, Concurrent co-founder.

“Our advisors will have greater freedom to choose technology and service platforms tailored to their unique brand identities and client needs,” Hlavek said in a statement. “Concurrent will be able to support its advisors with an “even wider variety of integrations with market-leading planning tools, trading solutions, TAMPs, alternative platforms, and CRMs.”

Concurrent plans to share more details about its new partnerships “in the weeks to come,” according to Lenz.

AdvisorHub was the first to report the news of the Concurrent-Raymond James breakup on Monday, and pointed out that Steward Partners Global Advisory was another affiliate that ended its broker-dealer relationship with Raymond James this year.

Steward, which had custodied and brokered via Raymond James since its founding in 2013, was one of the first clients for Goldman Sachs’ RIA custody business and early this year shifted to its own BD. However, unlike with Concurrent, after its split, Steward’s RIA continued to custody assets with Raymond James, which also provides financial support for Steward’s recruiting, according to Advisor Hub.

(Pictured: Raymond James’ headquarters in St. Petersburg, Florida)


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