Concurrent Investment Advisors, a hybrid registered investment advisor with a 1099 affiliation model, acquired the first firm on its platform this week. However, CEO Nate Lenz said the deal is not a sign of things to come.
“I don’t think you’re going to see a lot more [acquisitions] within the network,” Lenz said of the deal. “Where we are really focused are acquisition opportunities with other platforms. … RIAs serving 10, 20 or 50 affiliated advisors that can benefit from joining us and are a good cultural fit.”
Concurrent, backed by Merchant Investment Management, is a 1099 affiliation RIA committed to its model of independently branded firms supported by the parent without an endgame of converting advisors to a W-2 model.
“We’re very clear on what we do,” Lenz said, noting that Concurrent also offers minority investments to its affiliated firms, which number about 76. “We present a unique and compelling capital solution to tie the boats together, so to speak, and create alignment and a great home for those entrepreneurial advisors.”
Next Retirement Solutions was one of the first firms with Concurrent in 2017, when it launched its affiliation model as an office of supervisory jurisdiction for Raymond James (a setup it left in 2022). Unlike most of the firms, Next is focused on the employer-sponsored retirement plan space, with about $10 billion in assets under administration and some 150,000 underlying participants.
Lenz said that focus made it attractive to bring into the parent as a beachhead, both to service employer-sponsored retirement plans and to get in front of potential wealth clients from savers in the plan.
“It’s a great organic growth opportunity on the retail side and allows us to really serve those families with a rising demand for advice,” Lenz said.
A closer partnership with Next had been in the works for a while, including at the end of last year when Concurrent hired retirement specialist David Montgomery from OneDigital to run its Concurrent Retirement division—a name the Next team will eventually come under.
According to Lenz, the teams considered taking a minority stake in Next but eventually decided on an acquisition funded by a combination of equity and cash, with founder Paul Neuner keeping a good deal of stock in the transaction.
With the acquisition of Next, Concurrent now has about $16 billion in retirement plan assets under management, compared to roughly $14 billion under management by its wealth-focused affiliates.
Lenz and his team see an opportunity to grow their retirement plan business organically across large and small plans. They’ve already hired for the division, including recently bringing on Paul Phan, formerly of The Retirement Advantage, as director of institutional sales. He will be focused on the small market space, which analysts have predicted will see a boom in plan creation due to federal incentives and state mandates.
Lenz said Concurrent connects with participants through education in key moments, such as enrollment meetings, and hosting webinars throughout the year. It also uses third-party vendor TIFIN @Work for digital financial advice and guidance.
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