Concurrent Advisors, formerly a partnership of independent advisors affiliated with Raymond James, announced that it will restructure as a multi-custodial, hybrid registered investment advisor.
San Diego-based Concurrent, which was founded in 2016 as a platform for independent advisors, has grown to more than $12.7 billion by using the OSJ structure. The firm serves 145 advisors in 66 offices.
“Right now, we are in an environment of market volatility and uncertainty," Concurrent co-founder Nate Lenz said in an email to Financial Advisor. "To help our advisors grow and keep clients on track, they need a greater variety of investment solutions and platform support than they could find with a single custodian.”
Lenz said that due to the scale and aspirations of the business, the discussion about forming a Concurrent RIA had been ongoing for several months with both Raymond James and Concurrent’s other partner firms. But the timeline, though not unexpected, was accelerated by Raymond James, he said.
He said the firms are collaboratively working toward Concurrent exiting Raymond James’ platform late in the first quarter of 2023.
Raymond James issued a statement stating that the firm “has decided to end its relationship with Concurrent Advisors and is in discussions with the branch owners regarding an orderly dissolution of our relationship. 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.”
Lenz said Concurrent is in conversations with several custodians and will select a primary custodian in the coming weeks. “We're looking for partners who can offer a wide range of investments, data, insights and comprehensive offerings, along with a long track record of performance and a global presence,” he said.
Lenz said the firm is focused on ensuring that the split from Raymond James “represents a win for the client first and foremost as well as a win for the advisors. If that’s the case, the rest will take care of itself.”
He noted that their partner, Merchant Investment Management LLC, is on board with their move to the multi-custodial, hybrid RIA space. In July 2021, New York City-based Merchant, which provides growth capital and strategic opportunities to independent financial services companies, announced a minority equity investment in Concurrent.
Lenz credited the partnership with Merchant for “the substantial growth resources Concurrent offers.” He said those resources will remain in place and are expected to be expanded.