FP Advance chief executive Brett Davidson has launched a new advice proposition alongside Albion Strategic Consulting chief executive Tim Hale and Pace Solutions chief executive Tracey Underwood.
Mode will provide consultancy and support services to adviser firms in return for an equity stake.
Davidson (pictured) says the proposition is aimed at helping firms who make around £500,000 in turnover increase that to around £2m.
“We are trying to help good firms who do not seem to be able to move on and are getting stuck.
“These firms do not have the budget to pay us in cash to help them so we came up with a model if we can get you to a couple of million in turnover we can get paid through taking equity in the business.”
Davidson says he can not reveal the stake Mode would take in businesses but adds that it would not be close to a controlling stake.
Hale will focus on firms’ investment processes, specifically looking at passive, low cost funds. Underwood will assist firms with their back office systems and processes with Davidson focusing on business development and assisting the advice process.
Davidson says two firms have already signed up to the proposition with a third close to a commitment. He adds Mode is looking for another two firms before the end of the year.
Mode is looking to have stakes in 10 firms by the end of 2013 and is currently being funded by Davidson, Hale and Underwood although they are looking for outside investment in the proposition.