A $12.2B Raymond James Partner Sold a Stake to Merchant Investment. Here’s Why.

Concurrent Advisors, a company that helps breakaway financial advisors set up independent practices affiliated with Raymond James, has sold a minority stake to Merchant Investment Management. 

San Diego-based Concurrent says it is using the infusion to offer growth capital to its partner firms, which collectively manage $12.2 billion in client assets. 

“We see an opportunity to materially drive growth for our teams,” says Nate Lenz, a founding partner at Concurrent, in a news release. “We’re grateful for the ongoing support of Raymond James and adding Merchant as the third leg of our stool will give our teams the strategic guidance and access to capital needed to thrive.” 

Concurrent functions as what’s known as a super office of supervisory jurisdiction in Raymond James’ independent advisor channel. In that capacity, it assists advisors in launching their own firms and provides them with ongoing support. Concurrent’s partner firms, which now number 55 and are spread across the country, rely on Raymond James’ broker-dealer platform and corporate RIA. 

Using the Merchant capital, Concurrent is offering to buy minority stakes in its partner firms to help them grow their businesses.  Those partner firms can opt in—or out—depending on their specific needs, says Concurrent. So far, 25 of them have taken advantage of the offering.

The deal with Merchant also allows Concurrent’s partner firms to gain access to additional debt capital from Merchant, the company says. 

Based in New York, Merchant buys long-term minority stakes in independent financial firms. It says the Concurrent investment is its biggest deal yet. The companies declined to disclose deal terms.

In addition to providing the firms it invests in with capital, Merchant also offers them strategic guidance and M&A expertise. One of its managing partners is Matt Brinker, who previously served as the acquisitions chief at the former United Capital, the big RIA that is now a key part of Goldman Sachs ’ expanded wealth management business.  

Other wealth management firms that Merchant has invested in include Newport Beach, Calif.-based RIA Corient Capital Partners and Baldwin Brothers of Marion, Mass.

“Concurrent and Raymond James have done an incredible job in setting up their advisors for success,” says Marc Spilker, executive chairman of Merchant, in the release. “With this unique capital solution available, Concurrent can help advisors turn their visions of business growth and enterprise value creation into a tangible, achievable reality.”