Raymond James announced that it will acquire minority stakes in some of its own independent brokers to help “advisors achieve their business goals through a trusted partner,” according to a company statement.
The firm’s equity financing offer is part of its Practice Capital Solutions program, which allows “financial advisors to access capital conveniently without giving up autonomy over their practices. With the firm as a trusted minority capital partner, advisors can secure the funding needed to reach their business objectives,” said Tash Elwyn, President of Raymond James’ Private Client Group.
Eligible practices will work directly with Raymond James to exchange a minority equity stake in their business and revenue for the capital required to meet specific needs such as succession planning, team expansion, operational improvements, or preparation for a merger or acquisition, according to the St. Petersburg, Florida-based financial services firm.
The practices will retain full control over operations and business continuity throughout the investment, with the option to repurchase the stake under clearly defined favorable terms, the firm added.
“With equity financing through Practice Capital Solutions, advisors can support their unique vision for their practice without sacrificing the long-term interests of their clients and teams to an external investor. They can also be fully confident in their partnership with Raymond James—not only because of the firm’s financial strength and one of the strongest capital ratios in the industry, but also due to its demonstrated commitment to advisor autonomy,” Elwyn stated.
Practice Capital Solutions at Raymond James includes both traditional debt financing for succession and acquisitions as well as this new equity financing option. Both methods can be strategically combined to enable advisors to complete a full sale of their practice on their own terms, the statement added.
“By working closely with advisors, we’ve designed a solution that elegantly addresses the challenges they face when monetizing their practice, ensuring our capital solutions not only benefit the advisors and their clients, but also align seamlessly with Raymond James’ culture,” said Emma Boston, Vice President of Strategic Operations at Raymond James.
“Our approach reinforces business ownership and advisor independence, addressing their capital needs while strengthening our partnership as their equity investor. Most importantly, we accomplish all of this while ensuring the advisor retains full control over their practice, daily operations, and legacy,” she added.
For Funds Society, Madrid
