Holborn Assets has launched the NX Practice Buy Out scheme.
The programme offers a form of equity release secured against an adviser’s existing income, providing an option to take up to two times residual or recurrent income, up to $100,000 (£81,540, €94,470), as a lump sum, upon joining the company.
The proposition came into force from the 1 March 2022. Payments are collateralised against the adviser’s practice buy out on retirement.
The NX PBO aims to provide an option for advisers to take money off the table “without impeding their day-to-day activities or their present revenue streams”, or alternatively provide a cash injection for those in their younger years who wish to reinvest back into their business, the firm said.
It is designed to attract qualified advisers with mid-to-large size client books across the international market.
Attractiveness of scheme
Riyad Adamou, chief commercial officer at Holborn Assets, said: “We know we are one of a handful of companies in the international market that offers a contractual practice buy out to our advisers, and we believe we will be the only company to offer this form of collateralised payment upon entry.”
Robert Parker, chief executive of Holborn Assets, added: “We believe this once again demonstrates our intention to foster a long-term view, evidencing Holborn’s commitment, through considerable investment, to provide a market leading platform and proposition for the career adviser.
“Holborn has grown significantly over the last five years and we feel the offer of an exit through a traditional practice buy out is expected of a company of our size, the NX PBO is a further demonstration of our commitment to each and every adviser that enters the company from this day forward.”
Holborn Assets operates in 17 countries with over 250 advisers and $3bn in assets under management.
