LPL Financial Holdings Inc., an acquisition machine in the financial advice industry, on Tuesday morning said it agreed to buy part of the Mariner network of registered investment advisors and broker-dealers, Mariner Advisor Network.
Mariner Advisor Network was targeted to recruit and hire independent advisors.
LPL did not reveal the price tag for the acquisition; Mariner Advisor Network works with 367 financial advisors who collectively manage $31 billion in assets.
The transaction is odd because LPL is agreeing to buy advisors it already works with but who operate under the Mariner aegis, brand and network.
A majority of the advisors in the transaction were already registered with LPL Financial, according to a March filing by Mariner Advisor Network with the Securities and Exchange Commission.
An added wrinkle in the acquisition is the inclusion of Private Advisor Group, LPL’s leading RIA and branch office group.
As part of this transaction, 223 advisors will remain directly affiliated with LPL, but 144 hybrid advisors will transition to Private Advisor Group’s hybrid RIA model.
LPL is a minority equity partner in Private Advisor Group, and LPL Financial is its primary custodian and broker-dealer.
Those advisors will maintain their relationships with a variety of custodians and continue operating on the same LPL platform, according to the company.
With more than 32,000 financial advisors across the firm and $2.4 trillion in assets, LPL has been built for twenty years on acquisitions. Last year, LPL acquired its long-time rival Commonwealth Financial Network, which had close to 3,000 financial advisors at the time, for $3.2 billion in cash.
“This is an ideal outcome for these advisors, enabling them to broaden their relationship with LPL while maintaining stability and continuity for the clients they serve,” said Marty Bicknell, CEO and president of Mariner, in a statement.
“This step reflects our focus on doing what’s right for advisors and for the industry as it continues to evolve,” Bicknell added. “We’re proud of the network we built and confident in its enduring success with the continued commitment and support of LPL and Private Advisor Group.”
“We recognized an opportunity to deepen our relationship with the advisors affiliated with the Mariner Advisor Network by welcoming them into our growing supported independence community, one built on collaboration and a commitment to advisor success,” said Marc Cohen, group managing director and chief growth officer, LPL Financial, in a statement.
“Together with Private Advisor Group, we’re committed to enhancing the advisors’ experiences through our continued investment in innovative technology and breadth of wealth management offerings and services,” he added.
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