What do SJP advisers and Bitcoin investors have in common? More than you’d think.
In the world of crypto, every four years the market goes wild. Bitcoin’s supply is halved, prices spike, and whales (big investors) offload their holdings to unsuspecting krill (small investors) caught up in the hype. The result? Those in the know cash out. The rest get caught holding the bag.
Now, take a look at St. James’s Place.
At the end of 2024, their advisers were sitting on a staggering £805 million in business loans—a 15% jump from just a year before. That’s an average of £309,600 per adviser.
Sound familiar?
The Debt Spiral Hiding in Plain Sight
SJP’s model works like this: retiring advisers sell their “books” (client lists) to the next generation. The catch? These new advisers must take on serious debt to buy in. SJP or its banking partners lend them the money—creating a cycle where the firm gets paid, the old guard exits with a payout, and the newbies start life under a mountain of IOUs.
It’s pitched as “continuity” for clients. But is it really?
One reader of FT Adviser nailed it: “This is just the consolidator model in a new wrapper.” Another pointed out that many IFAs built their businesses from scratch, with “graft and skill”—not by borrowing their way in.
Let’s call this what it is: a transfer of wealth, dressed up as opportunity.
From Whales to Krill: The Adviser Edition
In crypto, the big players know when the tide’s about to turn. They sell high and walk away with a smile. Meanwhile, everyday investors pile in at the top—lured by promises of growth—only to watch their money vanish in the comedown.
At SJP, is the same dynamic playing out?
- Veteran partners cash out—selling practices at high multiples.
- New advisers load up on debt, betting on a future income stream.
- Clients are promised continuity, but may be unaware of the financial strain on their new adviser.
And the house? SJP wins either way.
But There’s No Gun to Anyone’s Head, Right?
Sure, no one’s forced to borrow. But when the route into the business depends on buying out someone else, what choice do you have?
One adviser who walked away from SJP recruitment emails put it simply: “I heard them out. But I stayed independent.”
That decision may have saved them a six-figure debt and a future full of stress.
Lessons from Bitcoin for Financial Planning
If the Bitcoin boom taught us anything, it’s this: when people are excited and the numbers look good, someone’s usually getting out while someone else is getting in.
The key is to ask yourself: which one are you?
So if you’re a young adviser looking to get into financial planning—think hard before taking on a six-figure debt just to get a foot in the door.
And if you’re a client? Ask your adviser how much debt they’re carrying. If they flinch, you’ve got your answer.
Final Thought:
Debt isn’t always bad. But when it’s used to sustain a business model that enriches the old guard and loads risk onto the new, it’s time to stop and ask: who really wins?
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