The complicated ties
Concurrent Advisors — and its 145 financial advisors with $12.7 billion in client assets — will drop Raymond James Financial Services as its brokerage and leave Raymond James' custodian next year, according to statements from the firms this week. Since
In contrast, Raymond James rival LPL Financial and
The parties' joint long-standing relationships with LPL, succession of 45-year veteran AK Financial founder Andy Karlinski's firm and the need to reduce operational headaches prompted him to choose Private Advisor, Karlinski said in an interview.
"I am now reducing — which is wonderful — my regulation and compliance time and effort," he said. "It's an exciting business. It's booming, but it's just going to go nowhere but up. I'll be doing mentoring. I'll be doing recruiting."
By getting rid of its own registered investment advisor in the process of moving into Private Advisor, Karlinski's firm is removing a layer of complexity in the structure of independent wealth managers adopting an
For example, Atlanta-based Advisory Services Network uses an outside brokerage called Calton & Associates that co-founder Tom Prescott describes as filling a need to service certain products among the roughly 225 advisors with $5.8 billion in client assets at the RIA. Advisory Services Network hasn't taken any outside capital infusions and doesn't buy any practices, either, which is another area of difference with many RIAs recruiting advisors these days. The prospective recruits can pick among many types of firms. Indeed, Advisory Services finds new advisors seeking limited brokerage relationships or none at all after working for firms like Raymond James and LPL, Prescott said in an interview.
"Practices join us for the economy of scale and for the platform," he said. Advisory Services' approach to working with advisors "gives them more time to speak to their clients and grow their books."
Tampa, Florida-based Concurrent is making a major change to its structure that isn't entirely clear. AdvisorHub first
Neither has said what, if any, brokerage Concurrent will use after leaving Raymond James in a departure slated for the first quarter of next year. The new RIA's registration with the SEC
An even bigger branch than Concurrent,
"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," Raymond James spokesman Justin Mayfield said in a statement. "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."
Under its eventual new setup in 2023 as an RIA with multiple custodians, Concurrent is seeking to reach $15 billion in client assets by the end of next year through recruiting and M&A deals.
"Our team and the advisors we support should be proud of the great work we have achieved so far," Lenz said. "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."
Concurrent is pivoting toward an its own advisory firm using several custodians — the same RIA arrangement as Advisory Services and Private Advisor. The ability to work with more custodians enables the firms to work with a wider base of advisors, which is just one of the ways that wealth managers are displaying more flexibility as they recruit across the industry.
Private Advisor, a Morristown, New Jersey-based firm with 700 advisors and $33 billion in client assets,
"The profession right now is very much focused on talks around transactions, valuations and liquidity," Smith said. "We're in a position we're we can help a lot of firms."
