In an effort to enhance the technology it offers for personal financial advice delivered to the mass market, NestWise LLC, a unit of LPL Financial, will buy Veritat Advisors.
NestWise, which was formerly known as LPL New Venture is designed to provide mass market investors with access to high-quality and affordable personal financial advice. Veritat is a full-service registered investment advisory firm that uses a proprietary online financial planning platform designed to support advisors who serve the mass market.
Veritiat was co-founded in 2008 by Kent Smetters, a professor at the Wharton School at the University of Pennsylvania. The company combines technology systems with sensible, practical and customer-driven financial advice.
"NestWise and Veritat are a perfect fit and share a common vision and philosophy,” said Esther Stearns, CEO of NestWise. “This strategic acquisition will significantly enhance the technology capabilities of NestWise as we look to serve the mass market. NestWise, which will operate as a registered investment advisory firm, will leverage both Veritat's robust technology base and LPL Financial's industry-recognized advisory platform and deep expertise in supporting independent advisors."
While Smetters plans to resume his career at Wharton full-time following the completion of the transaction, he has agreed to continue his support of Veritat by serving as a consultant to NestWise.
"Veritat's mission has been to deliver full-service and objective financial advice, and this makes our company a particularly strong fit with NestWise,” Smetters said. “Our software solution offers the flexibility to support the unique needs and financial goals of the mass market, while driving efficiency and scale."
The transaction is expected to close during the third quarter. The price of the deal was not disclosed.