Tampa, FL, 1/18/2019 – As Independent Financial Partners (IFP) continues to prepare for the launch of its broker-dealer in the first half of 2019, the firm has finalized significant financial commitments from two key partners, Pacific Current Group and NexBank.
Pacific Current Group, a global multi-boutique asset management firm focusing on bringing capital and strategic consulting to its portfolio companies, has purchased a 10% interest in IFP in the form of permanent capital. A permanent capital equity structure, unlike traditional private equity, signifies a long-term partnership, something that IFP’s Chief Executive Officer was adamant about having. According to Bill Hamm, “When we decided to start vetting equity partners, from the beginning we only spoke with those offering permanent capital. We’re in this for the long run and we wanted a partner that felt the same. We’re not looking to build this firm and flip it in 5 years. Rather, we’re looking to disrupt our industry and build a long-lasting company.”
Pacific Current Group rounds out the 3 tiers of what will be IFP’s broker-dealer ownership structure. They will own 10% of the firm, IFP is granting 15% to the advisors that transition to IFP’s broker-dealer once it’s launched, and IFP and its principals will maintain control with the remaining majority stake in the firm. The unique thing to point out is that rather than asking advisors to invest, IFP is granting them shares as a way to thank them for their loyalty.
In addition to the permanent capital being provided by Pacific Current Group, NexBank SSB, an institutional lender based in Dallas, and the primary subsidiary of NexBank Capital, Inc., has inked a deal with IFP to provide a significant line of credit to assist IFP as it seeks to grow its infrastructure as well as its advisor headcount. Bill McCauley, IFP’s CFO, is excited to partner with NexBank because of what that means for the firm. “If we want to be able to compete with the LPL’s and Cetera’s of the world, we need to be able to recruit advisors and acquire other RIAs and broker-dealers. We need capital partners like NexBank and Pac Current to make that happen.”
“We’ve been working toward finalizing arrangements with Pac Current and NexBank for a few months, and we’re thrilled that everything is now in place,” says Hamm. “I think we’ve found two firms that believe in IFP and our story, and that’s more important than the financial aspect of all this. We’re not just launching a broker-dealer to maintain status quo. We’re launching a broker-dealer because we know there is an opportunity in our industry to do something different and create a better world for financial advisors and their clients. We are the future, and we now have two strategic partners that are bought in to that. Pun intended.”
IFP is an SEC Registered Investment Adviser (RIA) and an Office of Supervisory Jurisdiction (OSJ), and works directly with its network of financial advisors to provide them technological, compliance, marketing, business development, and operational support. As of Dec. 31, 2017, IFP’s advisors have more than $40 billion in assets under advisement. The firm has annually earned the trusted CEFEX certification for investment support services for adhering to the industry’s best practices since 2014. For more information, visit www.ifpartners.com.
About Pacific Current Group
Pacific Current Group is a multi-boutique asset management firm dedicated to providing exceptional value to shareholders, investors and partners. We apply our strategic resources, including permanent capital, institutional distribution capabilities and operational expertise to help our partners excel. Pacific Current Group has 14 boutique asset managers globally, including IFP Group, LLC. For more information, please visit: www.paccurrent.com
About NexBank SSB
NexBank SSB is a regional bank with assets of $8.1 billion and a charter that dates to 1922. The Bank provides commercial banking, mortgage banking and institutional services to meet the needs of its clients, which include institutional clients, financial institutions, and corporations nationwide. NexBank SSB is part of NexBank Capital, Inc., a financial services company. www.NexBank.com
Posted by: Max Griendling | January 18th, 2019 at 1:07pm.