Raymond James | Private Capital Advisory

Background

Raymond James Financial, Inc., established in 1962, is a diversified financial services firm offering a broad spectrum of services, including investment banking, wealth management, asset management, and banking. The Private Capital Advisory (PCA) division, formed through the acquisition of Cebile Capital in May 2021, focuses on delivering capital formation strategies to the middle market. The division's mission is to provide tailored advisory services, emphasizing long-term client relationships and a commitment to execution excellence.

Key Strategic Focus

The PCA division specializes in:

Fund Placements: Assisting general partners in raising capital by managing all facets of investor-facing activities, leveraging strong relationships with institutional investors such as corporate and public pension plans, insurance companies, endowments, family offices, and fund of funds.

Secondaries: Advising investors on acquiring and selling interests in private equity and real asset holdings, including fund investments, direct assets, and hybrid portfolios. Services encompass secondary advisory, general partner solutions, valuation analytics, and transaction execution.

Strategic Advisory: Managing all aspects of investor relations activities, including investor strategy development, document preparation, limited partner perception studies, and ongoing investor relations support.

Financials and Funding

In the twelve months leading up to April 2024, the PCA team raised over $5 billion in new capital commitments for clients, oversubscribing the majority of its fundraises despite a challenging capital-raising environment. Additionally, the secondaries team advised on over $7 billion of deal flow across 41 different transactions during the same period.

Technological Platform and Innovation

Raymond James has invested significantly in technology to enhance client experience and operational efficiency. The firm utilizes advanced trading platforms and robust financial planning tools to support its diversified business model, which includes investment banking, wealth management, and asset management.

Leadership Team

Sunaina Sinha: Global Head of Private Capital Advisory.

Callie Kourniotis: Managing Director, based in New York, with nearly 18 years of private equity experience.

Guy Hume: Managing Director, based in London, with over 20 years of investment banking experience.

Michael Henningsen: Managing Director, based in London, with extensive experience in client relations and private funds advisory.

Ash Rajah: Director, based in London, with a background in private equity and real estate advisory.

Leadership Changes

In April 2024, Raymond James expanded its PCA division by hiring four senior bankers:

Callie Kourniotis: Joined from Credit Suisse, where she was a senior distribution banker in the private fund group.

Guy Hume: Previously led the EMEA financial sponsors group at Nomura.

Michael Henningsen: Former head of client relations at Pophouse Entertainment and partner at FIRSTavenue.

Ash Rajah: Joined from Fairview Capital Group, with prior roles at Pantheon Ventures and The Abraaj Group.

Competitor Profile

Market Insights and Dynamics

The private capital advisory market is characterized by increasing demand for specialized advisory services in fund placements, secondary transactions, and strategic advisory. Firms in this sector compete on the basis of industry expertise, global reach, and the ability to provide tailored solutions to clients.

Competitor Analysis

Key competitors include:

Morgan Stanley: A global leader in investment banking and wealth management, offering a comprehensive range of services similar to Raymond James.

Goldman Sachs: Known for its investment banking prowess, with significant operations in wealth management and asset management.

Charles Schwab: Provides robust platforms for retail investors and has a growing presence in financial advisory services.

Bank of America Merrill Lynch: Offers a broad range of financial services, including investment banking and wealth management.

Edward Jones: Focuses primarily on individual investors, offering personalized financial advisory services.

Strategic Collaborations and Partnerships

In May 2024, Raymond James partnered with Eldridge Industries to establish Raymond James Private Credit, a joint venture offering private credit solutions to portfolio companies of private equity firms. This collaboration leverages Raymond James' investment banking platform and Eldridge Industries' asset management expertise to provide financing solutions across sectors such as consumer, diversified industrials, healthcare, and technology & services.

Operational Insights

Raymond James' PCA division differentiates itself through a client-centric approach, emphasizing personalized financial planning and long-term relationships. The firm's diversified business model, combined with significant technological investments, positions it competitively in the financial services industry.

Strategic Opportunities and Future Directions

Raymond James aims to expand its private market financing capabilities and broaden bespoke private investment alternatives for ultra-high-net-worth investors. The firm has appointed Anand Subramanian as Head of Private Capital Markets and Ken Novak as Head of Private Markets Strategy to lead these initiatives. These strategic moves are designed to enhance the firm's ability to serve as a comprehensive financing advisor to middle-market companies and to provide a comprehensive selection of direct and fund investment opportunities to private wealth clients.