A billion-dollar hybrid registered investment advisory firm is merging into a larger company of its type that also uses LPL Financial as its brokerage.
V Wealth, led by managing partners Tom Blumer, Brett Lange and Dan Cherra, has 43 advisors and more than $2 billion in client assets. The parties announced the deal this week, with an expected closing date of July 14 for the transaction of undisclosed size.
Branches like Wealth Consulting and V Wealth have proven instrumental in LPL's success in recent years, with the firm boosting its headcount of independent advisors to
LPL was "very helpful on this merger," Lee said in an interview about his firm's deal with V Wealth.
"They have been looking for a while to find a partner of some sort for the growth of their company," he said, noting that a mutual friend connected the two firms. "He knew that, based on what they were looking for and what we could provide, that we were a good fit."
Mergers of branches at the same brokerage remain relatively rare, but
"They provide a lot of flexibility that you maybe wouldn't expect at such a large firm," Papike said. "LPL hasn't created an environment where you have to leave in order to evolve your business."
The three managing partners of V Wealth each have at least 22 years of experience in the industry, and Lee said the deal will give them and other advisors at their firm a succession plan if they seek to exit from the industry in future years.
"The WCG team provides exactly what our advisors have been asking for, which are additional services they believe are valuable to their clients," Blumer said in a statement. "WCG has created solutions that independent advisors are seeking with economics for the advisor that are second to none."
Wealth Consulting used bank financing for the deal, its first since an acquisition that launched the firm's hybrid RIA in 2014, Lee noted. The firm hasn't taken any outside investment from private equity or other firms that reach out frequently about potential capital infusions, according to Lee. While the branch currently has some locations in the Midwest, teaming up with Blumer's firm will expand its recruiting footprint in the region.
"That's going to give us a nice presence now in the Midwest," Lee said. "He and I are going to work closely to continue to grow the combined organizations. He's a great business development person and he's been able to grow that firm."
