LPL enterprise merger to create $8.5B firm

Two major LPL Financial enterprises agreed to a merger, creating one of the larger hybrid RIAs working with the biggest independent broker-dealer.

The combination of two Chicago-area enterprises, Professional Wealth Advisors and HighPoint Planning Partners, will add up to $8.5 billion in client assets managed by more than 200 advisors, the firms said Feb. 16. The enterprises are combining with no money changing hands while retaining the same brands, according to the five partners of the two firms.

Regardless, the deal illustrates the continuing trend toward consolidation that has driven wealth-management M&A to record levels, as firms like LPL and its rivals vie for wirehouse and bank breakaways seeking independence. It follows a similar merger last year that resulted in the largest office of supervisory jurisdiction using LPL’s corporate RIA, Gladstone Financial Resources Group.

“The HighPoint merger significantly ramps up our capability for advisor transitions and expands client options to more offerings and more services,” Josh Gerry, a managing partner of Professional Wealth, said in a statement. He added that the firm acts as “a full family office for every client” through services like planning, investments, legal, insurance and taxes.

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Gerry and Craig Ibrahim, HighPoint’s managing partner, say the merger enables more affiliation options for Professional Wealth's advisors through HighPoint's RIA while helping HighPoint tap the other firm's expertise in retail client services. The firms each have their headquarters in Downers Grove, Illinois, with eight other office locations between them.

HighPoint focuses primarily on working with “independent advisors looking for local compliance, service, support and favorable business economics,” Ibrahim said in a statement. “This merger is a tremendous opportunity to share our strengths with PWA while supporting more advisors.”

While Professional Wealth uses LPL’s corporate RIA, HighPoint lists $2.3 billion in assets under management across 6,700 accounts under its hybrid RIA, according to its latest SEC Form ADV. As one of more than 400 hybrid RIA practices that are affiliated with LPL, the firm uses TD Ameritrade as an additional outside custodian.

Professional Wealth has been adding recruits at a notable pace since topping $1 billion in client assets in 2019. In November, the firm poached advisor Bryan Schneider’s practice — which had $425 million in advisory, brokerage and retirement plan assets with its prior broker-dealer, J.P. Morgan Securities.

This story was updated to reflect additional information Feb. 18.