The financial industry is witnessing an intriguing shift as a $1.2 billion team, led by advisors David Ahlquist, John O'Shea, Nick Troiano, and Steve VanNostrand, has decided to leave Raymond James and embark on a new journey with Concurrent Investment Advisors. This move is not just about changing firms but represents a strategic decision to gain more control and ownership over their business.
The Power of Ownership
What makes this story particularly fascinating is the team's motivation to become business owners. By transitioning from Raymond James' employee model to Concurrent's RIA platform, they gain the ability to make crucial decisions, such as choosing their custodian. This level of autonomy is a significant factor in their decision-making process.
In my opinion, this move highlights a growing trend among financial advisors. They are no longer content with being employees; they seek the freedom and incentives that come with business ownership. It's a shift from a traditional corporate structure to a more entrepreneurial mindset.
The Allure of Enterprise Value
One aspect that immediately stands out is the potential for enterprise value creation. Nate Lenz, CEO of Concurrent, believes that this is a major attraction for teams like TAVO Wealth. By owning their business, these advisors can align incentives, structure their firm strategically, and take advantage of the capital influx in the industry. It's a powerful incentive that goes beyond just managing client assets.
What many people don't realize is that this shift also opens up opportunities for succession planning. Advisors can now build a legacy and ensure the continuity of their firm, which is a significant advantage over the traditional broker/dealer model.
The Role of Technology
The advancement of technology has played a pivotal role in making the RIA platform more attractive. Lenz highlights how technology has evolved to favor nimble and innovative firms. Concurrent, for instance, is integrating best-in-class solutions and investing in its infrastructure to stay ahead of the curve. This technological edge allows them to offer AI-powered services, further enhancing their appeal.
A New Model Emerges
Concurrent's 1099 affiliation model offers an interesting alternative to the traditional W-2 aggregators. This model provides the best of both worlds, allowing firms to maintain control while benefiting from potential multiple expansions. It's a unique approach that caters to firms interested in selling with succession in mind.
Expanding Horizons
Concurrent's strategy is not limited to acquiring firms. They have launched a minority capital program, taking stakes in seven RIAs. This approach allows them to expand their market reach and offer tailored platform solutions. It's a flexible model that adapts to the needs of entrepreneurial firms.
Conclusion
The financial industry is witnessing a transformation as advisors seek more control and ownership. Concurrent's model offers an attractive alternative, combining the benefits of ownership with the support of a robust platform. This shift towards entrepreneurialism and technological innovation is a fascinating development, shaping the future of financial advice.
