Raymond James is reinforcing its appeal as a destination for independent advisors with a new advisory practice financing option.
The firm's equity financing option, unveiled Monday, is designed to give independent financial advisors access to capital without surrendering control over their practices.
Offered through the firm’s Practice Capital Solutions platform, the program allows eligible advisors to exchange a minority equity stake and a portion of their practice’s revenue for funding to support succession planning, team expansion, operational upgrades, or M&A activity.
While Raymond James becomes a minority partner, participating practices retain full operational control and have the option to buy back the equity under predefined terms.
The move expands Raymond James’ existing capital support for advisors, which previously centered on debt financing solutions for succession and acquisition needs. Advisors may also combine both debt and equity financing to facilitate a complete sale on terms they determine.
“With equity financing through Practice Capital Solutions, advisors can fund the unique vision they have for their practice without having to sacrifice the long-term interests of their clients and team at the discretion of an outside investor,” Tash Elwyn, president of the firm’s private client group, said in a statement on Monday. “Further, they can be confident in their partnership with Raymond James, both for its strength and stability as a firm with one of the strongest capital ratios in the industry, and for its proven commitment to advisor autonomy."
Previously the CEO of the firm's employee advisor channel, Raymond James & Associates, Elwyn was elevated to lead the PCG division as part of a broader master plan of succession surrounding Paul Reilly's exit as CEO of Raymond James in March.
Raymond James positions its new minority equity program as a flexible capital solution for practices that may be underserved by traditional lending or seeking alternatives to third-party private equity. Advisors retain control over daily operations and client relationships, while also gaining access to strategic support.
“Our approach reinforces book ownership and advisor independence, solving capital needs while strengthening our partnership as their equity investor,” said Emma Boston, vice president of strategic operations. “Most importantly, we achieve all of this while ensuring that the advisor maintains full control – over their practice, their day-to-day operations, and their legacy.”
The firm's equity financing program builds on a recent string of moves by Raymond James to reinforce its status as an indie advisor-friendly broker dealer. In March, it tapped Ronice Barlow, a veteran leader from Franklin Templeton who comes with 30 years of industry experience, as the first-ever COO of its independent contractor division, Raymond James Financial Services.
More recently last week, the firm launched its Talent Sourcing program, a new in-house recruitment service aimed at helping independent practices find qualified candidates to fill various staffing roles, including entry-level advisors and specialized associates.
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