LPL Financial is acquiring “certain assets” from National Retirement Partners, the broker-dealer announced Wednesday.
When the deal is completed later this year, National Retirement Partners' independent advisors will “have the opportunity” to join LPL, the San Diego-based company said.
National Retirement Partners, which is based in San Juan Capistrano, Calif., would become a unit of LPL, called LPL Financial Retirement Partners, led by Bill Chetney, National Retirement Partners' former president and chief executive officer.
The deal is expected to close in the fourth quarter. The price was not disclosed.
On June 4, LPL announced that it was going public. At that time, industry observers said that the move could lead to more acquisitions.
National Retirement Partners has over 150 member firm offices in over 39 states comprised of independent advisors that provide plan consulting, fiduciary best practices and investment due diligence to retirement plan sponsors and their participants as well as comprehensive wealth management tools.
LPL, which has offices in Boston, Charlotte, and San Diego, offers comprehensive clearing and compliance services, practice management programs and training, and independent research to over 12,000 financial advisors, more than 750 financial institutions, and approximately 4,000 institutional clearing and technology subscribers.
Earlier this year, LPL announced that as of March 31, "advisory and brokerage assets totaled $285 billion, of which $81 billion was in advisory assets." Last year, brokerage sales were over $28 billion, including over $10 billion in mutual funds and $14 billion in annuities. Advisory sales were over $23 billion, which consisted primarily of mutual funds, the firm stated.
Total assets in LPL’s commission-based products were approximately $204 billion as of March 31.
LPL Financial is the largest independent and fifth largest U.S. broker-dealer, has 12,500 advisors, a 98% retention rate and its 2008 revenues of nearly $2.6 billion more than doubled those of Raymond James, its next closest competitor in the independent space. Twenty years after the San Diego-based company was formed through the merger of Linsco and Private Ledger, LPL appears to have lapped its rivals, leaving nothing in its rearview mirror.