AE Wealth Management Launches Securities-Based Lending Solution

AE Wealth Management has introduced a new securities-based lending solution designed to help financial advisors address the growing liquidity needs of their clients. The offering allows investors to leverage their existing portfolios of stocks, bonds, and ETFs to secure short-term funding for significant expenses like real estate or business investments without selling their holdings. This move reflects a broader trend in the wealth management sector where RIAs are increasingly integrating diverse credit solutions to maintain long-term investment strategies during periods of market volatility.

AE Wealth Management’s new securities-based lending (SBL) platform enables clients, trusts, and organizations to borrow against eligible investment assets, including stocks, bonds, mutual funds, and ETFs, without incurring fees or prepayment penalties. The solution is designed to provide flexible access to capital, allowing borrowers to draw or repay funds as their financial requirements evolve. According to the firm, the primary goal is to meet short-term cash flow demands for business-focused situations, such as business investments, real estate acquisitions, and education funding, while keeping the client's underlying investment strategy intact.

Shannon Larson, who joined AE Wealth as president in February following a tenure at Osaic Wealth, emphasized that the SBL offering serves as a personalized planning resource for advisors. Larson succeeded Chris Radford, who stepped down from the role last summer. This launch follows the November introduction of AE Private Exchange, a CAIS-backed platform that provides AE Wealth’s advisor network with tech-enabled access to curated private market providers, further expanding the firm's specialized service suite to meet evolving client needs amid market volatility.

Based in Topeka, Kansas, AE Wealth Management was founded in 2016 by David Callanan, Cody Foster, and David Bach as an affiliate of the independent marketing company Advisors Excel. The firm has grown significantly since its inception, reporting approximately $50 billion in assets under management across 282,995 accounts in its latest Form ADV update from June. The rollout of this lending solution aligns with a wider industry shift as Registered Investment Advisers (RIAs) seek to provide more comprehensive financial tools, including model portfolio services and retirement planning, to help clients navigate complex liquidity requirements.