Concurrent Funding Advisors, the Tampa, Fla.-based OSJ-turned-RIA restructured by Nate Lenz, Scott Steele and Kevin McFarland late final yr, has landed the biggest companion 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 group manages about $700 million in shopper 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 depart Goldman, in accordance with Lenz. Attributable to 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 variety 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 purchasers, per a latest ADV.
Concurrent—which operated as a big OSJ beneath Raymond James till breaking ties to reorganize as a multicustodial, hybrid RIA final yr—was launched to the Lumature group by a enterprise improvement consultant at Constancy, Concurrent’s major custodian.
“Concurrent’s partnership mannequin notably resonated with us, because it preserves our model integrity and independence,” Ramsey informed WealthManagement.com. “We weren’t excited by giving up what makes us distinctive or becoming a member of an acquirer who may not perceive the relationships we’ve got with our purchasers.”
“We’re not working towards conformity,” Lenz mentioned. “We just like the co-branding construction, the place they’re ‘powered by Concurrent.’ I believe that performs properly for advisors they could be seeking to affiliate or purchase, but in addition finish purchasers as a result of they will model themselves and inform their story to the section of the market they serve.”
Lenz mentioned Lumature has plans to embark on an inorganic regional development technique, recruiting proficient advisors and buying different corporations 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 might exist between our corporations,” he mentioned.
Ramsey additionally cited Concurrent’s in-house analysis and operational help as sights, saying they’ll “enhance” providers already obtained by present purchasers.
“We’re thrilled to see Concurrent rising at such a compelling tempo,” mentioned Rohit Mahna, head of shopper development at Constancy Institutional Wealth Administration Service. “We stay 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 satisfy its aim of $17 billion in cumulative belongings by the top of the yr. Previous to this deal, Concurrent was managing greater than $16 billion in shopper 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 enlargement technique for the agency, which at the moment spans 36 workplaces in 20 states.
“We’re enthusiastic about Lumature as a result of it offers us a hub in Atlanta,” mentioned Lenz. “We’re on the lookout for market leaders in these enticing areas they usually’ve obtained 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 companion corporations and gives fairness to all associates. The agency hasn’t completed any full acquisitions, preferring to convey on companions like Lumature in an fairness swap transaction, and there’s no W-2 possibility.
Lenz mentioned Concurrent would take into account 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 mentioned. “We’re not competing with them for these alternatives and so we want them in these markets for us to capitalize on them. You’ve this getting older demographic of advisors and there is going to be a whole lot of alternative.
“There are a whole lot of advisors that wish to be impartial but in addition wish to plug in and be part of a neighborhood model that has some recognition of their group,” Lenz mentioned. “So, after we plant a flag like we’re planting with Lumature, it offers us a beachhead in a brand new market that we will develop and develop upon.”
