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Concurrent Funding Advisors, the Tampa, Fla.-based OSJ-turned-RIA restructured by Nate Lenz, Scott Steele and Kevin McFarland late final 12 months, has landed the biggest associate agency in its six-year historical past.
Based in 2020 by Ross Ramsey and Corley Watson III as an workplace of supervisory jurisdiction on Raymond James’ impartial dealer/supplier platform, the six-advisor Lumature Wealth Companions group manages about $700 million in consumer belongings, bringing in round $6.2 million in annual income.
Previous to founding Lumature, Watson and Ramsey labored collectively at a registered impartial advisory agency based by Watson that was acquired by United Capital in 2013. They grew to become a part of Goldman Sachs following its acquisition of United Capital in 2019 and have been the primary United Capital group to go away Goldman, in response to Lenz. On account of a noncompete clause, they waited three years to re-enter the impartial RIA house with the transfer to Concurrent.
Lumature has places of work in Atlanta, Ga., and Charleston, S.C., and supplies a spread of wealth administration, planning and session providers relating to funds, investing, insurance coverage, trusts and estates, philanthropy, enterprise and training to round 575 particular person shoppers, per a latest ADV.
Concurrent—which operated as a big OSJ below Raymond James till breaking ties to reorganize as a multicustodial, hybrid RIA final 12 months—was launched to the Lumature group by a enterprise growth consultant at Constancy, Concurrent’s main custodian.
“Concurrent’s partnership mannequin notably resonated with us, because it preserves our model integrity and independence,” Ramsey informed WealthManagement.com. “We weren’t fascinated about giving up what makes us distinctive or becoming a member of an acquirer who won’t perceive the relationships we’ve got with our shoppers.”
“We’re not working towards conformity,” Lenz stated. “We just like the co-branding construction, the place they’re ‘powered by Concurrent.’ I believe that performs nicely for advisors they is likely to be seeking to affiliate or purchase, but additionally finish shoppers as a result of they’ll model themselves and inform their story to the section of the market they serve.”
Lenz stated Lumature has plans to embark on an inorganic regional development technique, recruiting proficient advisors and buying different companies within the nation’s Southeast. To that finish, the group will faucet into Concurrent’s mergers and acquisitions capabilities, together with on-staff recruiters.
“It grew to become very clear in a short time that there have been some nice synergies that may exist between our companies,” he stated.
Ramsey additionally cited Concurrent’s in-house analysis and operational assist as points of interest, saying they are going to “enhance” providers already acquired by current shoppers.
“We’re thrilled to see Concurrent rising at such a compelling tempo,” stated Rohit Mahna, head of consumer development at Constancy Institutional Wealth Administration Service. “We sit up for persevering with to supply strong options that propel them ahead.”
Lumature formally joined Concurrent on Sept. 29 and have become the thirty first agency on the quickly rising platform, which is on observe to fulfill its purpose of $17 billion in cumulative belongings by the top of the 12 months. Previous to this deal, Concurrent was managing greater than $16 billion in consumer belongings—about $10 billion in retirement plan belongings and $6.05 billion in particular person accounts.
The addition represents step one in a brand new growth technique for the agency, which presently spans 36 places of work in 20 states.
“We’re enthusiastic about Lumature as a result of it provides us a hub in Atlanta,” stated Lenz. “We’re on the lookout for market leaders in these engaging areas they usually’ve obtained an current infrastructure, an current employees, workplace house. It’s our opinion that we will actually assist them develop inorganically.”
“One other key distinction with us is we do not do full acquisitions on the Concurrent stage for succession functions,” he added.
Backed by Service provider Funding Administration, Concurrent has taken a minority non-controlling stake in all however two of its associate companies and presents fairness to all associates. The agency hasn’t performed any full acquisitions, preferring to carry on companions like Lumature in an fairness swap transaction, and there’s no W-2 possibility.
Lenz stated Concurrent would think about a full acquisition in a case the place the advisor intends to remain on for the close to time period, however the agency isn’t set as much as soak up the shoppers of a departing advisor.
“However our groups are,” he stated. “We’re not competing with them for these alternatives and so we’d like them in these markets for us to capitalize on them. You will have this growing old demographic of advisors and there is going to be lots of alternative.
“There are lots of advisors that wish to be impartial but additionally wish to plug in and be part of an area model that has some recognition of their group,” Lenz stated. “So, once we plant a flag like we’re planting with Lumature, it provides us a beachhead in a brand new market that we will develop and broaden upon.”
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