Large $1.2-Billion Team Flees Raymond J. For Greater Opportunity

Over the past decade, large regional firms like Raymond James have built their advisor ranks by promising wirehouse brokers and captive advisors greater freedom and flexibility. Now, some of those entrepreneurial advisors are taking the next step and breaking away for truly independent, open-architecture models.

On Wednesday, the Keaton & Sams Wealth Management group left Raymond James & Associates to run their own practice affiliated with supported independence platform provider Concurrent Investment Advisors. The team, led by Bill Keaton and Alfred Sams, had managed around $1.2 billion in assets and generated around $9.5 million in revenue.

Their group, which includes four support staff, operated under a unique structure at Raymond James as they were W-2 employees but functioned much like an independent firm with compensation tied to the profitability of their office.

Ultimately, Keaton and Sams, who joined Raymond James from SunTrust in 2017, concluded that full independence was necessary to unlock the long-term value of their business. After extensive due diligence guided by The Gershman Group   they aligned as 1099 independent advisors supported by Concurrent, an independent firm started in 2017 by former Raymond James advisors and managers.

“Advisors are leaving these big models because they’re tired of the expensive costs, the burdensome compliance, and being captive to a closed architecture retail custodian. They’re getting squeezed while still the equivalent to the lowest common denominator advisor,

said Roger Gershman, CEO of The Gershman Group. “And by breaking away, they can really unleash the value of their equity by not being captive.”

Concurrent’s familiarity with the Raymond James ecosystem, as well as its own 2023 departure from the firm’s independent channel, made it a natural fit. Concurrent has quickly grown into one of the largest and fastest growing supported independent platforms. The firm provides all the administration, lead-edge technology and compliance for a fraction of the revenue at a fraction of the cost of large firms.

Another key factor in Keaton and Sams’ decision was Concurrent’s backing by Merchant Investment Management, a prolific investor in the wealth management space. The pair sold a minority stake at a very attractive valuation in exchange for equity in the Concurrent ecosystem of countless large practices- a terrific diversification strategy. That interest could convert into Merchant stock at a much higher multiple if Merchant takes its portfolio of companies public or recapitalizes.

Merchant, which invests in and supports around 130 partner firms with $300 billion in assets, has become a dominant player fueling independent growth. For Keaton and Sams, that partnership provided immediate liquidity while positioning for long-term upside, an appealing proposition for two advisors who are still far from retirement.

In addition, the team selected Goldman Sachs as their custodian, giving them access to one of Wall Street’s most prestigious brands and top-tier resources. Goldman has rapidly become a major force in RIA custody, challenging the primacy of Charles Schwab and Fidelity. Keaton and Sams were drawn to its open-architecture platform and resources for ultra-high net worth, sophisticated clients, features that are drawing billion-dollar teams to Goldman on a weekly basis.

Wednesday’s move reflects a pattern among top-producing advisors and mirrors that of a $2.5 billion team, Laurel Oak Wealth Management, which left Ameriprise Financials’ independent channel in July to open its own RIA. Laurel Oak partnered directly with Merchant and similarly selected Goldman as custodian for their RIA. Gershman, who also represented this team says, “the combination of Goldman Sachs and Merchant is a one-two punch that large firms just cannot compete.

Keaton and Sams had considered starting their own standalone RIA but determined partnering with Concurrent offered the best of both worlds with short-term monetization and the option to participate in a larger enterprise.

The writing is on the wall for firms like Ameriprise and Raymond James. They have built strong, advisor-friendly wealth management businesses. But they’re under pressure as advisors realize that they still remain relatively constrained by big-firm compliance structures, costly and uncompetitive technology, prohibitions on marketing, a single captive custodian and limited product flexibility. As platform fees rise and private capital catalyzes the independent movement, more advisors are recognizing the wealth-creation potential of true ownership.