IFP offers advisors 40% of sale proceeds in 10-year plan

Independent Financial Partners introduced a program that would give its advisors 40% of proceeds from a planned sale or private-equity recapitalization within 10 years, with 50% of each advisor’s payout paid at closing and the remaining 50% paid two years later. The firm calls the program Project 3.14.

The payout will be tied to an advisor’s revenue and use of the firm’s asset management and other services. To qualify, an advisor must generate at least $250,000 in production and remain with the firm through the transaction date. Participation is voluntary and does not require advisors to buy equity or sell shares.

In cases of retirement or an unexpected death before a transaction, a participating advisor’s entitlement would remain in place, though the firm said the amount could be diluted depending on the timing and whether the advisor’s clients remain at IFP.

IFP provided the details earlier this year in a slide deck and an accompanying essay from CEO Bill Hamm. The Tampa, Florida–based wealth management firm reported it has 279 advisors and $19.5 billion in client assets under advisement, figures the firm says reflect growth since leaving LPL Financial and launching its own broker-dealer in 2019.

Hamm wrote that the company will not pursue a sale until it reaches a $1 billion valuation and that it expects a transaction event by 2036. He described the firm’s preference for a private-equity recapitalization or a sale that would retain IFP’s advisor-focused culture and noted he would not seek buyers he views as prioritizing shareholders over advisors. Hamm wrote in the essay, “If anybody ever tells you that they’re not going to sell, they’re probably lying to you.”

IFP said the plan was developed in part after observing consolidation in the industry, including a recent large acquisition that influenced its timeline. The firm described Project 3.14 as a way to reward advisors who remain through a future transaction and who contribute to sustained profitability and growth.

Recruiting firm executives urged advisors to review the full terms of any equity or participation offer. Rick Rummage, chief executive of The Rummage Group, cautioned advisors to examine voting rights, restrictions on leaving the firm and other contractual provisions. Jodie Papike, chief executive of Cross-Search, advised advisors to understand the structure of any private-equity investment and the potential contractual strings attached.

IFP’s program joins a number of equity and retention offers targeting independent advisors as private equity and larger firms expand their presence in wealth management. The firm’s public timeline and the absence of a required buy-in distinguish Project 3.14 from many other offers, while leaving open questions about the identity of any eventual buyer and how market conditions may change over the next decade.