{"id":625290,"date":"2026-05-05T18:15:10","date_gmt":"2026-05-05T18:15:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/625290\/"},"modified":"2026-05-05T18:15:10","modified_gmt":"2026-05-05T18:15:10","slug":"raymond-james-new-capital-raising-option-oversubscribed","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/625290\/","title":{"rendered":"Raymond James\u2019 New Capital Raising Option ‘Oversubscribed’"},"content":{"rendered":"

Raymond James\u2019 roughly year-old program<\/a> offering capital options to its financial advisor network is so far \u201coversubscribed,\u201d according to top executives at its annual conference in Las Vegas this week.<\/p>\n

The St. Petersburg, Fla.-based firm has already staked 12 advisor practices through its Practice Capital Solutions Program, and has about 100 more in talks, said Emma Boston, senior vice president, succession and capital.\u00a0<\/p>\n

\u201cWhat has been truly surprising is the amount of interest that we have heard from advisors,\u201d Boston said during a panel discussion at the conference. \u201cI give credit to you all for all of your feedback and partnership to collaborate and create something together with us.\u201d\u00a0<\/p>\n

Raymond James\u2019 capital solutions program offers three options: debt financing, a minority stake of about 10% to 30%, or a 100% equity stake.<\/p>\n

Boston said on the sidelines of the conference that the most common request is for a noncontrolling minority investment that will allow the advisor to retain independence, while funding either succession needs or growth objectives.\u00a0<\/p>\n

Related:Raymond James Announces Client 360 Platform, AI Advisor Academy<\/a><\/p>\n

\u201cThe majority want minority so they can stay independent,\u201d Boston said. “It is a smaller use case for full acquisition.\u201d<\/p>\n

The first firm to enter the program, Birmingham Investment Group, said during the panel session that it wanted to raise capital partly to recover acquisition costs from recent acquisitions, as well as to set up an equity-sharing program for its younger advisors.<\/p>\n

Warren Whatley Jr., a partner in the Birmingham, Ala.-based firm, said the leadership had come from a background where \u201cyou didn\u2019t dare tell your firm that you were thinking about leaving.\u201d But the team decided to discuss its needs with Raymond James, which ultimately led them to sign up for the minority investment program.<\/p>\n

\u201cWe were concerned about \u00a0the transition to our [Generation] 2s and G-3s,\u201d he said. \u201cIt was important to us that we had a conduit to let them get us out of the way.\u201d\u00a0<\/p>\n

Whatley said Boston and Raymond James worked with the firm to create different share classes for their next generation of advisors to ease them into ownership.<\/p>\n

\u201cIt\u2019s a gradual process,\u201d he said. \u201cBut it gives us time to evaluate them, too \u2026 we want to make sure we put everyone in a position to succeed.\u201d<\/p>\n

Raymond James is competing with a variety of capital-raising options available to financial advisors in the market. Those range from selling to a private equity-controlled firm<\/a> to getting a noncontrolling minority investment from industry-focused banks or other RIAs<\/a>.<\/p>\n

Related:Post-Integration and Reverence Recap, Osaic Targets Organic Growth<\/a><\/p>\n

On the main stage of the conference, Private Client Group President Tash Elwyn highlighted the Practice Capital Solutions program to the more than 2,000 financial advisors in attendance.<\/p>\n

\u201cObviously, there are many benefits [of the capital program], with the most notable that it\u2019s a firm and a name that you already know, you trust and that\u2019s going to provide tremendous continuity, not only to your business, but to your clients,\u201d he said.\u00a0<\/p>\n

On the sidelines of the conference, he added that demand had been strong since the firm announced the program.\u00a0<\/p>\n

\u201cIn terms of the traction, the [program has been] incredibly positive, and [it\u2019s] been very well received\u2014dare I say, oversubscribed in terms of the interest,\u201d Elwyn said. \u201cWe\u2019re being responsive to that and very focused on expanding.\u201d<\/p>\n

Elwyn compared the capital program to the flood of private equity in the IBD and RIA space.\u00a0<\/p>\n

\u201cAs you look at what\u2019s happened across the industry over the last five to 10 years, there\u2019s been X-amount of aggregation, but you\u2019ve yet to see the exits,\u201d he said. \u201cAdvisors are rightfully concerned about the implications of that, most importantly to their clients, but then in addition to the businesses they built, the legacy of those businesses, what happens to their successors.\u201d<\/p>\n

Related:LPL Investing in AI to \u2018Prop the Advisor Up\u2019<\/a><\/p>\n

David Keator of advisory Keator Group said he leveraged the program for long-term succession planning with his children. They were the third generation to join the firm founded by Keator\u2019s mother in 1979.<\/p>\n

Keator said that they all felt they could \u201ceasily sell the business.\u201d But they were looking for a partnership that would help his children eventually take control.<\/p>\n

\u201cAs a dad, I didn\u2019t want to indenture my children into a situation that I wasn\u2019t sure of,\u201d he said. \u201cAfter a lot of thought, and a lot of looking around, candidly, we came back to this is where we want to be, and the kids said yes, this is also where we want to be.\u201d\u00a0 \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Raymond James\u2019 roughly year-old program offering capital options to its financial advisor network is so far \u201coversubscribed,\u201d according…\n","protected":false},"author":2,"featured_media":625291,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":["post-625290","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/625290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=625290"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/625290\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/625291"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=625290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=625290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=625290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}