LPL Financial Wednesday announced the launch of LPL Private Wealth Management, an affiliation program for advisors catering to high-net-worth clients.
LPL currently serves approximately $130 billion in high-net-worth assets under management, according to the company, offering resources such as advanced estate and philanthropy planning, income tax strategy, trustee services, robust alternative investment platform, banking and lending solutions and complex life insurance planning.
Gary Carrai, LPL’s executive vice president for advisor business lines, told InvestmentNews that high-net-worth-focused advisors at wirehouses “generally have lower payouts and a lack of freedom, and they want more options.” As a result, LPL has launched this new model as a way to meet that demand, he said.
“Unlike our competitors, with the LPL Private Wealth offering, these advisors can get the best of both worlds: exclusive access to specialized teams and resources vital to supporting the needs of high-net-worth investors while enjoying all the flexibility of independence,” Carrai said.
LPL says it serves more than 22,000 financial advisors, including advisors at approximately 1,100 enterprises and at approximately 560 RIA firms nationwide.
Anna Howard, LPL’s senior vice president of private wealth, added that the favorable economics of this offering contribute to a better advisor experience.
“Through this model, high-net-worth-focused advisors get the support infrastructure of a W2 model while also enjoying the financial benefits of independence, including book ownership, upfront payouts and legacy building, all backed by the stability of a Fortune 500 company,” she said.
Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.
The collaboration will focus initially on strategies within collective investment trusts in DC plans, with plans to expand to other retirement-focused private investment solutions.
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