Concurrent Investment Advisors, a prominent hybrid registered investment advisor (RIA) operating a 1099 independent contractor platform, has announced a transformative acquisition of Spire Investment Partners, a $5.4 billion RIA platform. This strategic move marks Concurrent’s first acquisition of another RIA platform and represents a substantial leap in its assets under management (AUM), propelling the firm to $28.6 billion in AUM. This figure is a significant increase from its $16.8 billion AUM at the commencement of the year, further bolstered by an additional $18 billion in corporate retirement plan assets under advisement. The deal, which closed recently, solidifies Concurrent’s position as a rapidly growing force in the independent advisor landscape and signals an ambitious expansion strategy.
Strategic Rationale Behind the Acquisition
The acquisition of Spire Investment Partners aligns seamlessly with Concurrent’s overarching growth objectives and its established model of empowering independent advisors. Concurrent, which successfully transitioned from Raymond James in 2022, has built its foundation on a 1099 independent contractor platform. This model allows advisor teams to maintain their brand autonomy and financial independence while leveraging the robust support infrastructure, cutting-edge technology stack, and comprehensive resources provided by the home office. The firm has consistently expanded its platform by integrating new firms, often through minority stake investments, and last year launched a dedicated RIA minority investment program to further facilitate this growth.
Nate Lenz, CEO of Concurrent Investment Advisors, articulated the strategic significance of this acquisition, stating, "We’ve got ambitious growth goals, and this is a new frontier for us. Rather than doing it brick-by-brick, we are going out to get a like-minded group of advisor teams." This statement underscores Concurrent’s intent to accelerate its expansion by acquiring entire platform businesses that share its vision and operational philosophy, rather than solely relying on organic growth or individual advisor team recruitment.
The synergy between Concurrent and Spire was a key driver of the deal. Lenz highlighted Spire’s operational alignment with Concurrent’s 1099 model, emphasizing that both firms empower advisors to manage their own businesses with comprehensive home office support. "It’s all about being selective and finding the right fit in firms that line up with advisor independence and advisor support," Lenz remarked. "Looking at Spire was kind of like looking in a mirror." This mutual operational philosophy is expected to facilitate a smooth integration process, minimizing disruption for both advisors and clients.
Spire Investment Partners: A Foundation for Growth
Spire Investment Partners, headquartered in McLean, Virginia, was established in 1997. While it has a long history in the financial advisory space, its recent focus on expanding its hybrid platform by onboarding other RIAs has been a significant growth catalyst. The firm had amassed over 30 advisor teams on its platform prior to the acquisition, demonstrating its capability to attract and integrate independent advisory practices. Furthermore, Spire had proactively implemented an in-house succession program for its affiliated firms, a forward-thinking initiative that addresses a critical challenge within the wealth management industry.
David Blisk, founder and CEO of Spire, expressed his enthusiasm for the union, attributing the decision to a deep understanding of Spire’s advisors’ evolving needs. "As we considered various options to continue to grow the firm, we heard loud and clear from our advisors that they wanted the technology and resources to keep driving their growth and relevance to their clients," Blisk stated. This client-centric approach, coupled with the desire for enhanced capabilities, made Concurrent an attractive partner. The acquisition ensures that Spire’s affiliated advisors will gain access to advanced technological tools and a broader spectrum of resources, enabling them to better serve their client base and adapt to the dynamic financial landscape.
Under the terms of the agreement, Blisk and Spire employees will receive access to Concurrent equity after a one-year vesting period, mirroring the equity participation offered to all Concurrent employees. This inclusive approach to ownership fosters a sense of shared success and long-term commitment among the combined entity’s personnel. Additionally, Spire’s advisor teams will have the opportunity to participate in Concurrent’s minority investment program, providing them with further avenues for capital and growth support, with these discussions to commence post-onboarding.
A Timeline of Concurrent’s Expansion
Concurrent Investment Advisors’ journey since its separation from Raymond James in 2022 has been characterized by strategic growth and platform expansion. The firm’s core strategy has revolved around building a robust 1099 independent contractor platform, attracting advisor teams by offering a compelling value proposition of independence combined with comprehensive support.
- 2022: Concurrent Investment Advisors officially breaks away from Raymond James, marking the beginning of its independent operational phase. The firm begins to focus on developing and expanding its 1099 independent contractor platform.
- Ongoing (Post-2022): Concurrent steadily adds new firms and advisor teams to its platform, often through minority stake investments. This approach allows for controlled growth and the integration of diverse advisory practices.
- Last Year (Implied 2023): Concurrent launches its external RIA minority investment program, formalizing its strategy to invest in and partner with other RIAs. This program provides a structured avenue for capital infusion and strategic collaboration.
- Recent Past (Implied late 2023/early 2024): Concurrent identifies Spire Investment Partners as a strategic acquisition target, recognizing its similar operational model and significant AUM. Due diligence and negotiations commence.
- Present: The acquisition of Spire Investment Partners is successfully completed. This represents Concurrent’s first acquisition of an entire RIA platform, significantly boosting its AUM and operational footprint.
This timeline illustrates a deliberate and consistent strategy of expanding Concurrent’s reach and capabilities, culminating in the significant acquisition of Spire.
Enhanced Operational Capabilities and Expanded Footprint
The integration of Spire brings tangible enhancements to Concurrent’s operational infrastructure and geographical reach. To accommodate Spire’s custodial preferences and align with its existing relationships, Concurrent has added BNY Pershing as a custodian to its roster, which already includes Goldman Sachs, Schwab, and Fidelity. This multi-custodial approach provides flexibility and caters to the diverse needs of the combined advisor base.
The acquisition establishes Concurrent’s first office presence in Northern Virginia, significantly extending its national footprint to 33 states. This geographical expansion is crucial for serving a broader client base and attracting new advisor teams in key markets. Furthermore, the deal brings approximately 17 home office employees from Spire into Concurrent’s fold. These new team members will bolster Concurrent’s internal support functions, bringing the total home office staff to approximately 111 individuals.
Nate Lenz emphasized the value of this expanded human capital: "This brings us to about 111 home office team members supporting advisors across investment, planning, custodial support and other central services. Spire will now have access to specialized functions they didn’t have through the human capital, which also creates a virtuous cycle for us as we scale and offer our advisors more." This expansion of specialized functions, including investment management, financial planning, and custodial support, will provide Spire’s advisors with enhanced resources and expertise, ultimately benefiting their clients.
Ownership Structure and External Investment
Concurrent Investment Advisors maintains a strong employee-centric ownership structure. The firm is majority-owned by its employees, fostering a culture of shared responsibility and aligning individual success with the firm’s overall growth. This model is complemented by a minority stake held by Merchant Investment Management, a strategic investor that provides capital and expertise to support Concurrent’s expansion initiatives. The inclusion of Spire employees and advisors in the equity structure further solidifies this employee-focused approach.
Broader Industry Implications and Analysis
The acquisition of Spire by Concurrent is indicative of several key trends shaping the wealth management industry:
- Consolidation in the RIA Space: The independent RIA sector continues to experience a wave of consolidation. Larger, well-capitalized firms like Concurrent are strategically acquiring smaller RIAs and platforms to achieve scale, enhance their service offerings, and gain market share. This trend is driven by the desire for efficiency, access to better technology, and the need to meet evolving client demands.
- The Rise of the 1099 Independent Model: The success of firms like Concurrent in attracting and supporting independent advisors on a 1099 model highlights the growing appeal of this structure. It offers advisors flexibility and entrepreneurial freedom while providing them with the backing of a robust corporate entity. This model is becoming increasingly attractive as advisors seek to escape the constraints of traditional broker-dealer structures.
- Focus on Advisor Support and Technology: The emphasis placed by both Concurrent and Spire on technology and home office support underscores the critical role these elements play in advisor success. RIAs that can provide cutting-edge technology, comprehensive back-office services, and effective practice management support are better positioned to attract and retain top talent.
- Strategic Acquisitions as Growth Levers: Concurrent’s move to acquire an entire platform, rather than solely individual teams, signals a strategic shift towards more significant growth initiatives. This approach allows for more rapid expansion and the integration of established client bases and operational frameworks. It also suggests that Concurrent may be looking to replicate this strategy with other suitable acquisition targets in the future.
- Succession Planning as a Value Proposition: Spire’s proactive approach to succession planning, and Concurrent’s commitment to supporting this through its platform and potential minority investments, addresses a critical industry challenge. As many advisors approach retirement, robust succession planning becomes a key differentiator for RIAs seeking to attract and retain talent and ensure continuity for their clients.
The deal was facilitated by experienced industry advisors. Berkshire Global Advisors provided strategic counsel to Spire Investment Partners, while Katz Teller served as legal advisor to Concurrent Investment Advisors. These advisory roles highlight the complexity and specialized expertise involved in significant M&A transactions within the financial services sector.
This acquisition positions Concurrent Investment Advisors for continued growth and influence within the RIA landscape, demonstrating a clear strategic vision and a commitment to empowering independent advisors through a robust and supportive platform. The combined entity is poised to leverage its expanded AUM, broader geographical reach, and enhanced operational capabilities to serve an increasingly diverse client base.
