Raymond James said Monday that it will soon begin making minority investments in advisor practices that meet certain tenure and performance requirements.
Qualified advisors will give Raymond James a minority equity stake in their practice and revenue in exchange for the capital required to pursue their business needs.
The firm expects advisors to take on funding to support succession planning activities, drive team growth, enhance operations or prepare for a merger or acquisition.
Practices selling a minority stake to Raymond James will retain full operating control and business continuity throughout the investment, it says, with the option to buy back the sold stake on “clearly defined, favorable terms.”
Other firms that have embraced this approach include Commonwealth Financial Network, LPL Financial, Cetera Financial Group and Osaic.
Industrywide, consolidation and dealmaking are being fueled by advisors’ succession plans as well as the benefits of scale, according to Echelon Partners, which reported a total of 366 transactions in wealth management in 2024.
The group recently said it expects another year of vigorous M&A activity in 2025, given the highly fragmented market, strong growth potential and a steady pipeline of motivated buyers and sellers.
"By partnering closely with advisors, we’ve crafted a solution that elegantly addresses the challenges they face when monetizing their practice to ensure that our capital solutions not only serve advisors and their clients but also align seamlessly with the Raymond James culture,” Emma Boston, vice president, strategic operations, said in a statement.
With the firm as a trusted minority equity partner, advisors can receive the financing required to achieve their business goals, said Tash Elwyn, president of the Raymond James Private Client Group.
“With equity financing through Practice Capital Solutions, advisors can fund the unique vision they have for their practice without having to sacrifice the long-term interests of their clients and team at the discretion of an outside investor,” he said in the statement.
Moving forward, the firm says, debt and equity financing can be strategically combined for advisors to complete a full sale of their practice on their terms.
Michael S. Fischer contributed to this report.
Pictured: The company's headquarters in St. Petersburg, Florida.
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