Topic
Recruiting deals
How firms pay to recruit advisors, and the trends in packages across channels.
Firms compete for experienced advisors with transition packages, typically quoted as a percentage of an advisor’s trailing-12-month production. Packages usually combine an upfront forgivable loan with back-end bonuses tied to asset and revenue targets over several years.
Wirehouses, regional firms and independent broker-dealers structure deals differently, and terms shift with competition, interest rates and each firm’s growth goals. Retention bonuses aim to keep advisors from leaving at all.
Financial ADVSR covers recruiting packages and the moves they produce across every channel.
Latest on recruiting deals
WealthManagement.com
LPL Recruits $1.1B Team to its RIA Channel From Wells Fargo's FiNetWealth Solutions Report
Building Podcasts, Claude For Advisors And Controlling AIWealth Solutions Report
Deals & Recruiting Roundup: Cerity, Corient, LPL, Verdence And More
Questions
How are advisor recruiting deals structured?
Most packages are expressed as a percentage of trailing-12-month production and paid as an upfront forgivable loan plus back-end bonuses tied to future assets or revenue. The loan is forgiven over a set term, usually several years, if the advisor stays.
What is trailing-12 (T12) production?
The revenue an advisor generated for their firm over the previous twelve months. It is the standard yardstick for sizing recruiting offers.
What happens if an advisor leaves before the loan is forgiven?
The unforgiven balance of a forgivable loan typically becomes repayable, which is why packages also act as retention tools.