Osaic adds Navy Federal in big exit from LPL's incoming Atria crop

Osaic drew a major credit union-based wealth management program that chose it over LPL Financial as the service provider to an institution with 14 million members.

Navy Federal Credit Union's Navy Federal Investment Services represents the largest credit union wealth and investing business that was set to go to LPL upon the close of its acquisition last fall of Atria Wealth Solutions, representatives for Osaic said Jan. 28. Vienna, Virginia-based Navy Federal's wealth business has at least 69 financial advisors based out of the 360 branches of the largest credit union in the world, where 24,000 employees provide banking, wealth and other services to military members, veterans, contractors, civilians and their families.

"Osaic offers unmatched expertise in the institutional space, positioning us to continue to  achieve our long-term objectives of providing exceptional value to our members," Navy Federal Financial Group Chief Operating Officer Diane Young said in a statement. "Leveraging the specialized team and service model at Osaic Institutions, we aim to enhance our ability to expand the range and depth of services we can offer to our members."

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At least $6.06 billion in assets under administration will move as part of Navy Federal's transition by the end of this quarter, according to Osaic. Navy Federal's RIA listed $1.47 billion in assets under management in its latest disclosure to the Securities and Exchange Commission last March. 

Navy Federal has its own brokerage as well. But Osaic Institutions, which works with 230 bank- and credit union-based wealth businesses, will be its primary outsourced wealth management services firm following the shift.  

"This partnership highlights our extensive expertise in supporting bank and credit union clients and underscores our commitment to delivering tailored solutions that address the distinct needs of their organizations," Osaic Executive Vice President of Advice and Wealth Management  Greg Cornick said in a statement. "We look forward to this partnership and driving value for Navy Federal, its advisors and its members." 

The firm previously had a "piggybacking agreement" with Atria subsidiary CUSO Financial Services to be Navy Federal's introducing brokerage firm for processing and account servicing, Navy Federal's SEC filing noted. But that was slated to transfer to LPL by the middle of 2025, after LPL paid $805 million plus earnouts of up to $230 million in October to buy Atria from its former private equity owners. Upon close of the deal, LPL disclosed that the firm was on pace to reach or top its expected retention target of 80% for the incoming group of 2,400 advisors and 150 bank and credit union-based wealth programs.

Representatives for LPL didn't immediately respond to a request for comment on Navy Federal's move.

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Its acquisition of Atria represented the second-largest recruiting move or M&A deal in the independent brokerage channel in 2024, and the impending addition of Wintrust Financial's Wintrust Investments and Great Lakes Advisors will bring another mega-recruit to LPL this quarter. Reverence Capital Partners-backed Osaic completed the largest acquisition in the channel last year when it purchased Lincoln Financial Group's wealth business for $700 million.