LPL is extending its profile in the Northeast wealth market as it unveils a deal to snap up a multibillion-dollar hybrid RIA.
Under the definitive agreement announced Wednesday, LPL Financial will acquire The Investment Center, Inc., a broker-dealer and RIA based in Bedminster, New Jersey. The deal will fold approximately 240 financial advisors and $9 billion in brokerage and advisory assets into the broker-dealer giant's network.
The Investment Center, founded in 1986, provides back-office support, investment tools, and technology along with a broad catalog of non-proprietary products to a its community of independent financial advisors that spans the nation.
“The Investment Center fosters an entrepreneurial approach that has driven their success,” Rich Steinmeier, managing director and chief growth officer at LPL Financial said in a statement Wednesday.
He added that the deal would help LPL deliver its industry-leading service and technology to The Investment Center’s advisors.
Ralph DeVito, president and chief executive officer at The Investment Center, commented on the alignment between the two companies, highlighting “LPL’s commitment to the success of its advisors.”
DeVito also noted the potential benefits for The Investment Center’s advisors: “Through LPL Financial, we will enhance our ability to support them with access to even more robust resources and solutions.”
The transaction is expected to close in the first half of 2025, pending regulatory approval and other closing conditions.
The seeds for LPL's agreement with The Investment Center were planted when the two firms were introduced as part of LPL's planned takeover of Atria Wealth Solutions, the private equity-backed broker-dealer aggregator. That deal, which was announced in February, will incorporate 2,400 financial advisors and registered reps with $100 billion in client assets across seven broker-dealers.
The sheer scale and complexity of Atria's wealth business will make digesting it into LPL's enterprise quite challenging, according to a group of JPMorgan analysts in a note commenting on that deal in April..
"While LPL does not expect to complete the full integration until mid-2025, the integration of seven separate broker-dealers will be complex even for an experienced LPL team that has a streamlined process to onboard advisor teams and enterprises within the banks/credit union segment," the note read.
"Most pre-retirees are uncomfortable making key retirement income decisions without an advisor's help," said Chris Bailey of Cerulli.
Also, Summit Wealth Group nabs a Commonwealth advisor in Tennessee, Oxford Financial adds two managing directors, and Verdence draws an ultra-high-net-worth advisor from Fidelity.
When advisors have tech to handle meeting prep and organization, it frees up time they can reinvest more thoughtfully into helping clients.
LPL Financial and Raymond James also add independent advisors from Osaic and Edward Jones in Michigan and Arizona.
The SEC-registered RIA advises on more than $1 billion in client assets, with no advisory fee through 2027 and no human financial advisors.
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