LPL Financial has established itself as a dominant figure in the mergers and acquisitions market since the start of this year, announcing the multibillion-dollar purchase of Commonwealth Financial Network and a partnership with First Horizon Bank's wealth management subsidiary. Betterment and Carson Group have also jumped into the fray with deals of their own.
The $2.7 billion purchase of Commonwealth will see the firm retain its branding and commitment to supporting advisors, as LPL CEO Rich Steinmeier
In return, LPL is slated to grow its roughly $1.7 trillion in assets under management by up to $285 billion in advisory and brokerage assets, as well as add 2,900 advisors. Steinmeier even floated the notion that LPL could learn a few things from Commonwealth.
"We deeply respect this firm, and we want to bend LPL to look more like Commonwealth, not the other way around," Steinmeier said.
Commonwealth would be the latest acquisition in a recent spate of deals from LPL, which include
Following the tentative Commonwealth pickup, LPL announced it is working to finalize a partnership with First Horizon Bank's wealth management arm, First Horizon Wealth. If this deal is approved, LPL would provide support for roughly $16 billion in client assets managed by First Horizon.
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Other wealth management players have been lively with M&A activity as well.
Betterment, the New York-based digital investment advisory firm, announced in February that it was making a play to acquire the automated investment arm of Ellevest, as well as all accounts and assets under management related to just that division.
"On top of automated investing, Betterment offers features that many of our digital clients have expressed interest in, including joint accounts and other cash account options," Sylvia Kwan, CEO and CIO of Ellevest, said in a statement. "We built a platform that makes it easy to invest in a way that works for our clients' needs, goals, and values — and the same is true of Betterment under the leadership of their CEO, Sarah Levy."
Analysts with consulting and valuation firm DeVoe & Co. published data in support of their theory that the pace of M&A deals will outperform that of last year's, but new tariffs and a recently announced 90-day suspension of reciprocal tariffs from President Donald Trump could derail predictions.
On April 9, Trump announced he would
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Expert insights and more M&A coverage below.
How LPL execs are working to acclimate Commonwealth advisors
Following the announcement of LPL Financial's
The 2019 acquisition of Allen & Co. is an example Steinmeier used to showcase how LPL has handled the consolidation of forces in previous deals with smaller firms. That pairs with other doubt-soothing efforts through town halls, webinars, dinners and more.
"I think there is some skepticism about our intention to retain and defend this community," Steinmeier told Financial Planning. "And I am trying to make it as clear as possible that there shouldn't be skepticism, because not only is this absolutely the right thing to do to maximize the experience for these advisors, it's also the best thing for LPL and Commonwealth."
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Betterment inks deal for Ellevest's automated investment division
Betterment, a New York-based digital investment advisory firm, announced in February that it plans to acquire the automated investment arm of Ellevest, a New York-based wealth management and investment company founded by and tailored for women.
Ellevest was
The deal only includes Ellevest's automated investing accounts and assets under management, which are anticipated to move to Betterment in mid-April of this year provided the agreement is finalized. Ellevest customers can choose to opt out of the transfer.
"This acquisition further cements our leadership in the digital investing space," Sarah Levy, Betterment CEO, said in a statement. "We look forward to welcoming Ellevest's clients to Betterment and to continuing to support them on their wealth-building journeys."
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Analyst predict pace of RIA M&A deals to stay the course
Experts with consulting and valuation firm DeVoe & Co. are forecasting that mergers and acquisition activity among registered investment advisory firms will surpass last year's above-average cadence.
The firm's latest "
"It is likely that the shift among RIAs can be partially attributed to greater awareness of the complexity and investments required to execute an acquisition," according to the report. "Although a majority of firms still expect to acquire a firm during the next 24 months, a growing number are deciding that there are better ways to achieve their goals."
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Carson Group spins up tax program for financial advisors
The growing demand for tax resources among financial advisors has led Carson Group, one of the industry's largest hybrid RIAs, to launch a new tax solutions program.
Carson Tax Solutions is led by Debra Taylor, a seasoned certified public accountant who agreed to lead the new venture after
"A lot of advisors are shifting more into tax-oriented services. … Consumers expect to have more of a one-stop-shop for their financial needs," Jaclyn DeJohn, director of economic analysis for SmartAsset, told FP. "They often don't realize the heavy, heavy tax savings that can come to their bottom line."
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LPL Financial partners with First Horizon Bank on wealth management arm
On April 7, LPL Financial
LPL's institutional arm, which works in collaboration with banks, credit unions and other financial institutions, is expected to begin its partnership with the Memphis-based bank's subsidiary First Horizon Advisors in the second half of this year, around the same time its previously announced deal for Commonwealth Financial will close.
The partnership touches upon roughly $16 billion in client assets now managed by 110 advisors in 12 states across the wealth management subsidiary's footprint.
The firm's Institutional Services unit has signed many noteworthy agreements in recent years, including the provision of brokerage, RIA and custody services to
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