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LPL Closes Waddell & Reed Deal, Adding 900 Reps

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What You Need to Know

  • The reps work with about 95% of client assets in Waddell & Reed's wealth unit.
  • Meanwhile, on Thursday, LPL reported a 43% year-over-year increase in total client assets for Q1.

LPL Financial has completed its purchase of Waddell & Reed Financial’s wealth management business from Macquarie Management Holdings for roughly $300 million. 

More than 900 Waddell & Reed advisors have committed to join LPL’s platform, the independent broker-dealer said late Friday. 

These advisors — who should move to LPL in the next few months — work with about 95% of the $71 billion of client assets in Waddell & Reed’s wealth unit as of March 31, or nearly $65 billion. 

“Waddell & Reed advisors are seasoned and well-regarded throughout the industry and are a strong cultural and strategic fit with us, said LPL CEO and President Dan Arnold. “We look forward to supporting them with our comprehensive platform that helps them design and operate the perfect practice for them and their clients.”

On Dec. 2, 2020, LPL Financial agreed to the transaction. At the time of the deal’s announcement the Waddell & Reed wealth unit had 921 independent advisors and $63 billion of assets under administration.

LPL’s Q1 Earnings

The news comes one day after LPL Financial reported a 43% year-over-year increase in total client assets in the first quarter, hitting $958.3 billion. 

This included the addition of nearly $29 billion in net new assets, about $12 billion of which moved to the firm via its acquisition of BMO Harris Financial Advisors. 

LPL now has 17,672 affiliated financial advisors, up 909 from a year ago and 385 for the prior quarter. 

While its revenues rose 17% from last year to $1.71 billion, its net income fell 17% to $129.6 million, as did its reported earnings per share — which were $1.59 in Q1’21.