Commonwealth Financial Network has announced a new suite of financing options to assist advisors with succession planning and growth.
Matt Chisholm, senior vice president of RIA services and practice management, shared that the firm created the offering out of demand from financial advisors seeking capital. The advisors wanted to accomplish one of three things in particular:
To monetize or de-risk an existing practice at current market values and multiples.
To facilitate succession and transition from a founder to a next-generation advisor.
To facilitate growth acquisitions.
According to executives at Commonwealth, the new "Entrepreneurial Capital" program provides advisors with flexibility and includes traditional, bridge, and jumbo loans and the equity financing option.
Advisors will utilize Commonwealth as the lender instead of utilizing an outside lender. Currently, Commonwealth is using its own money to fund the options, but it has begun exploring relationships with banks.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
