© 2019 SourceMedia. All rights reserved.

CPA referrals help fuel LPL hybrid RIA-OSJ's $1B growth

An LPL Financial hybrid RIA has recruited advisors with $1 billion in assets this year — an amount it expects to double in the second half of 2019 and about $100 million more than it added in 2018.

The addition of $430 million in client assets from Integrated Partners' new 40th regional office helped fuel the expansion. Mike Mohr and his father Jim affiliated with LPL and Integrated in May after Mohr Financial Group spent 23 years with Lincoln Financial Network.

Integrated Founder Paul Saganey followed the same path when he aligned with LPL in 2016, the year he launched the hybrid RIA. The Integrated enterprise now spans 141 advisors with $6 billion in assets under advisement, in part due to a CPA referral program and other offerings.

Integrated Partners RIA

The program — which has 127 CPA partners — enables large accounting firms to provide clients with wealth management services through Integrated advisors. It ranges from fully outsourced to strategic partnerships with the advisors serving as the accounting firms' RIA.

Mike Mohr cites high-net-worth client growth potential as a key factor in the San Diego-based practice’s move, along with its succession plan as his father plans to exit the profession after 35 years. The father-son team wanted to “update our business model,” Mike Mohr says.

“We're entering into an age of independence and the RIA channel is increasingly more attractive to a firm of our size,” he says. “And so it was a nice transition — the older generation to the younger generation and also modernizing the business model itself, kind of in tandem.”

Representatives for Lincoln didn’t respond to inquiries regarding the team’s move. Mohr Financial’s five advisors and five staff members affiliated with LPL on May 10, according to FINRA BrokerCheck. Integrated also added a dozen advisors with $900 million in client assets in 2018.

Services include an advanced planning team out of Integrated’s San Diego corporate office and the Integrated Business Alliance, which assists entrepreneurs who are clients of the CPA firms with latter-stage matters like connecting them with prospective buyers.

“It's like a feeding frenzy out there,” says Saganey, noting the firm has some 200 private equity contacts. “The cycle for private equity can be 10 to 15 years. And so if you're a small business owner looking to sell, if you miss this next couple-of-year window, you may have to wait another period of time before you strike again.”

Earlier this year, Integrated announced at least five different advisory teams which affiliated with the hybrid RIA ahead of the departure of Bill Hamm’s Independent Financial Partners. The other office of supervisory jurisdiction has since launched an independent broker-dealer of its own.

Integrated also recruits from wirehouses and fee-only RIAs, notes Robert Sandrew, senior vice president of business development. Its RIA services and other offerings appeal to advisors who have reached between $50 million and $400 million in client assets, he says.

“Where we really differentiate ourselves is on what I'll call the front-end resources that we've been talking about, helping advisors really grow, better support their existing client base, go out and find new opportunities,” he says. “We're trying to maybe have advisors flex a muscle that they've never necessarily flexed before, although they have it in their DNA.”

Two perennial champions retained their top ranks in 2019 — but the aging demographic poses challenges for all firms, according to J.D. Power.
July 10

LPL’s corporate RIA affiliates have also been unveiling new recruits, including seven advisors with $1.04 billion in combined assets announced within the past two weeks. The five moves brought in advisors from Kestra Financial, Commonwealth Financial Network, Raymond James Financial Services and CUNA Brokerage Services.

  • Financial advisor Ron Jaeger aligned with an LPL OSJ named Gladstone Wealth Group in Red Bank, New Jersey on July 11, according to FINRA BrokerCheck. He manages $200 million in client brokerage, retirement plan and advisory assets.
  • Los Angeles-based Edward Charton of Charton Financial Group has $500 million in client assets. The team affiliated with LPL on June 26 after 21 years with Kestra, BrokerCheck shows.
  • Howard Fink's PFP Financial and Insurance Services brought $100 million in client assets to LPL after affiliating on June 26. The team's tenure with Kestra also spanned more than two decades.
  • Following nearly two decades as affiliates of Raymond James, advisors Patrick Foy and Chris Willis aligned a team with $125 million in client assets on June 3, according to BrokerCheck. The advisors operate the practice in Winnie, Texas.
  • An 11-branch credit union called Suffolk Federal and its investment program Suffolk Wealth Management affiliated with LPL on April 30. Financial advisors James Gallagher and Mark Filiberto manage $110 million in client assets at the Medford, New York-based program.

Representatives for CUNA and Raymond James didn’t respond to inquiries seeking comment. A spokeswoman for Kestra declined to comment. Commonwealth issued a statement from Andrew Daniels, the firm’s managing principal for business development.

“On behalf of Commonwealth, we wish Ron Jaeger well in his next endeavor,” Daniels said.

For reprint and licensing requests for this article, click here.