Private Advisor Group announced Wednesday that it has taken on a minority ownership investment from LPL Financial.
LPL joins Merchant Investment Management as a minority owner of Private Advisor Group, alongside legacy shareholders.
The agreement aims to deepen Private Advisor Group's alignment with LPL and enable the firm to pursue innovation and accelerate advisor growth and engagement. As part of this effort, the firms will expand resources for practice management and succession planning to help advisors strengthen and sustain their businesses over the long term.
The news comes about two months after LPL unveiled a plan to take on new minority ownership stakes in affiliated firms. At the time, LPL said it would make a limited number of minority investments, with an option to acquire the remainder of firm ownership at a predetermined valuation.
The strategy resembles moves made by other big brands in wealth management, including Raymond James, Cetera and Osaic. Private equity firms have also grown increasingly active in the wealth industry via both majority acquisitions and minority stakes. In LPL’s case, the strategy is more likely to represent a bespoke strategy in select cases.
“LPL is a natural partner based on our shared history and mutual alignment," Frank Smith, CEO of Private Advisor Group, said in a statement. "At Private Advisor Group, we believe in offering advisors choice, flexibility, and a true path to growth. Both LPL and Merchant share this mindset and are uniquely positioned to advocate for advisors and shape the trajectory of our industry.”
Marc Cohen, group managing director and chief growth officer at LPL, added that the firms have collaborated for nearly 30 years.
“This alignment will allow us to better deliver solutions to support advisors throughout their business lifecycle,” Cohen said.
Private Advisor Group will continue to operate independently under its existing brand while drawing on both LPL and Merchant to create new opportunities for advisors. The exact financial terms of the deal were not disclosed.
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