Seven years after splitting from LPL Financial, industry veteran Bill Hamm now proposes a long-term ownership and exit strategy for his firm, IFP Securities and IFP Advisors, according to reporting by InvestmentNews. The plan positions private equity as the eventual buyer and gives current advisors a financial stake in the firm ahead of a projected sale within the next decade.
Hamm previously controlled a large LPL-affiliated office in Tampa, Florida, before separating from the independent broker-dealer in 2019. He then launched IFP Securities and IFP Advisors, which now support 279 financial professionals and oversee approximately $19.45 billion in assets under administration, according to company disclosures cited by InvestmentNews.
Under Hamm's proposal, advisors would purchase equity in the firm and share in the proceeds of a future transaction targeted for roughly 2036. The structure reflects a broader industry trend in which private equity and institutional investors continue to acquire wealth management firms, particularly RIAs, as consolidation accelerates and valuation multiples rise.
In a letter to advisors and staff referenced by InvestmentNews, Hamm described a market environment defined by increasing consolidation, sustained private equity inflows, and larger firms pursuing scale through acquisition. He stated that these conditions continue to push enterprise values higher across the wealth management industry.
Hamm also proposed that advisors receive 40 percent of proceeds from any future sale, arguing that the structure aligns advisor contributions with long-term firm value creation. The firm has framed the initiative as a "value participation program" designed to reward advisors who remain through the transaction period while contributing to profitability and growth.
The proposal ties advisor economics to firm performance through contributions derived from gross dealer concession (GDC), with additional revenue assumptions based on a 7.5 percent organic growth rate and a 1 percent client fee associated with the firm's in-house asset management platform, according to materials cited by InvestmentNews.
While the firm outlines the mechanics of the plan, it does not specify a projected valuation or sale price for IFP. It also leaves the exact timing of a transaction flexible within a broader horizon that extends to 2036.
Financial Advisor Transitions consults with advisors nationwide regarding employment transition options and strategies to preserve and protect their practices during any transition.
