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 accomplice 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/seller platform, the six-advisor Lumature Wealth Companions staff manages about $700 million in shopper property, 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 turned a part of Goldman Sachs following its acquisition of United Capital in 2019 and have been the primary United Capital staff to depart Goldman, in response to Lenz. Resulting from a noncompete clause, they waited three years to re-enter the impartial RIA area with the transfer to Concurrent.
Lumature has workplaces 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 schooling to round 575 particular person purchasers, per a current ADV.
Concurrent—which operated as a big OSJ underneath Raymond James till breaking ties to reorganize as a multicustodial, hybrid RIA final 12 months—was launched to the Lumature staff by a enterprise growth consultant at Constancy, Concurrent’s main custodian.
“Concurrent’s partnership mannequin significantly resonated with us, because it preserves our model integrity and independence,” Ramsey informed WealthManagement.com. “We weren’t involved in giving up what makes us distinctive or becoming a member of an acquirer who may not perceive the relationships now we have with our purchasers.”
“We’re not working towards conformity,” Lenz stated. “We just like the co-branding construction, the place they’re ‘powered by Concurrent.’ I feel that performs properly for advisors they is perhaps trying to affiliate or purchase, but additionally finish purchasers 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 progress technique, recruiting proficient advisors and buying different companies within the nation’s Southeast. To that finish, the staff will faucet into Concurrent’s mergers and acquisitions capabilities, together with on-staff recruiters.
“It turned very clear in a short time that there have been some nice synergies that will exist between our companies,” he stated.
Ramsey additionally cited Concurrent’s in-house analysis and operational assist as points of interest, saying they may “increase” providers already obtained by present purchasers.
“We’re thrilled to see Concurrent rising at such a compelling tempo,” stated Rohit Mahna, head of shopper progress at Constancy Institutional Wealth Administration Service. “We stay up for persevering with to supply sturdy 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 monitor to fulfill its aim of $17 billion in cumulative property by the top of the 12 months. Previous to this deal, Concurrent was managing greater than $16 billion in shopper property—about $10 billion in retirement plan property 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 workplaces 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 bought an present infrastructure, an present employees, workplace area. 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 accomplice companies and affords fairness to all associates. The agency hasn’t achieved any full acquisitions, preferring to deliver on companions like Lumature in an fairness swap transaction, and there’s no W-2 possibility.
Lenz stated Concurrent would contemplate 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 take up the purchasers of a departing advisor.
“However our groups are,” he stated. “We’re not competing with them for these alternatives and so we want them in these markets for us to capitalize on them. You will have this ageing demographic of advisors and there is going to be plenty of alternative.
“There are plenty of advisors that need to be impartial but additionally need to plug in and be part of an area model that has some recognition of their neighborhood,” 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.”
