LPL Financial is acquiring a family-owned independent broker-dealer, as the big players of the sector buy up vulnerable small firms.
LPL agreed to purchase Lucia Securities, which has 20 advisors and $1.5 billion in assets under management, the firm
The deal is one of many in the IBD sector. Advisor Group grew into one of LPL’s largest competitors with
Among recent deals, LPL
Large IBDs can tap into much more cash than small firms in a time of lower earnings across the financial services, Moody’s Investors Services
Raymond James Investment Banking Asset & Wealth Management was Lucia Securities’ advisor in the agreement.
“I believe our wealth management platform, enhanced with LPL’s culture, technology and capabilities, provides the ideal environment for our financial advisors to exceed clients’ expectations,” Lucia Securities CEO Ray Lucia said in a statement.
Ray and Joe Lucia’s Lucia Capital Group includes the broker-dealer, an RIA, and two sub-advisory and modeling firms,
LPL will take over as the San Diego-based firm’s custodian following the deal, though any commutes to the new parent won’t be a trek. LPL has one of its three corporate headquarters in the city.
Lucia “has been helping individuals, families, and business owners manage their wealth for decades,” according to a statement by Ray Lucia on its
In addition to M&A, LPL has pursued an aggressive recruiting strategy, adding a
“At LPL, Lucia Securities’ advisors and their clients will benefit from the strength and breadth of our capabilities, technology and services,” Rich Steinmeier, LPL’s managing director for business development, said in a statement.