Commonwealth Financial Network's approaching acquisition by LPL Financial isn't deterring new recruits, as evidenced by its addition of yet another substantial advisory practice.
Patrick Funke & Associates, a firm in Phoenix, Arizona, with $430 million under management, announced Tuesday that it has joined Commonwealth Financial Network from the independent broker-dealer Osaic, an industry rival of Commonwealth. The announcement comes as LPL Financial moves forward with its plans to buy Commonwealth for $2.7 billion, a deal expected to close in the second half of the year.
The purchase plans prompted many in the industry to wonder if Commonwealth advisors who had come to the firm because of its relatively small size would find a comfortable home at the much larger LPL. Commonwealth has slightly more than 2,900 advisors, whereas LPL's headcount is pushing 30,000.
Patrick Funke officially joined Commonwealth in February, about a month before
"They probably knew very well what was coming down," Edde said. "There were probably even some conversations with them beforehand that this is likely if not imminent."
A spokersperson for Osaic declined to comment on Patrick Funke's move.
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LPL executives have sought to combat the notion that their firm is too big by promising to retain every attribute of Commonwealth that made it distinctive. That includes not only its brand but also many of its support services for advisors, technology and general ways of doing business.
Like many industry recruiters, Edde said he thinks Commonwealth advisors are likely to take a "wait and see" approach to deciding if they want to stay at LPL for the long term.
"A lot of them are also taking due-diligence trips and visiting with different companies," he said. "A surprising number are doing that preemptively. But I have not seen a lot of actual movement and jumping to a new firm. A vast majority are going to wait and see if LPL lives up to its promises and does what it says it's going to do."
Patrick Funke came to Osaic through Securities America
Patrick Funke, the founder of Patrick Funke & Associates, started his career 33 years ago at Princor Financial Services, according to
In a statement about the move, Patrick Funke nodded toward both Commonwealth and LPL.
"When we last changed our partner firm, it was for additional size and scale," Funke said in a statement. "That's not enough, though, because relationships are the lifeblood of our firm."
The Commonwealth model means partnering with a high-level, professional team that's relationship-focused, not transaction-oriented. Looking ahead, Commonwealth and LPL will give us the foundation to grow our practice."
Jennifer Funke, Patrick's wife and business partner, also emphasized the benefits of joining Commonwealth.
"With the Commonwealth approach, we appreciate that when we have questions, people pick up the phone, listen, and call back promptly," she said in a statement.
Patrick Funke & Associates isn't the only practice Osaic has lost to Commonwealth Financial ahead of its acquisition by LPL. Earlier this month, Commonwealth announced it had picked up a 30-member practice
— Updated to clarify the timeline and add outside comments.
