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Financial Planning > Behavioral Finance

LPL Financial Files for IPO Five Years After Private Sale

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LPL Financial’s parent company filed a registration statement on Friday, June 4, in connection with the highly anticipated initial public offering of its common stock.

The company says the offering will consist of primary shares to be sold by the company and secondary shares to be sold by some of its existing minority stockholders.

It intends to use net proceeds from the proposed public offering for repaying debt.

A registration statement filed with the Securities and Exchange Commission (SEC) has not yet become effective.

Goldman Sachs and Morgan Stanley will serve as the senior underwriters.

In late 2005, 60% of the independent broker/dealer was sold to Hellman & Friedman of San Francisco and Texas Pacific Group of Fort Worth, a signal to many observers that the company’s next financial move would be to go public. At the time, LPL Financial’s advisor count was 6,800.

In 2007, it acquired three broker/dealers from Pacific Life.

In the first quarter of 2010, the company reported that its net income rose 91% year over year to almost $28 million on $743 million in revenue. It reportedly had 12,026 financial advisors and some $285 billion in assets under management.

In April, CFO Robert Moore noted that adjusted EBITDA for first quarter was the “highest ever,” crossing the “psychological barrier of $100 million.” EBITDA in the period rose 29% to $105 million versus $82 million in the first quarter of 2009.

It had 11,950 affiliated independent financial advisors and about $260 billion in assets under management at the end of 2009, when it recorded sales of nearly $2.8 billion.

Led by Mark Casady, LPL Financial has major operations in Boston, Charlotte and San Diego.

Read about LPL Financial’s first-quarter results from the archives of

Read an exclusive interview with LPL Financial Co-Founder Todd Robinson from the archives of


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