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LPL Financial Holdings Inc. (LPLA) is the nation's largest independent broker-dealer, a leading investment advisory firm, and a top custodian. The company supports over 23,000 financial advisors across various institutions and registered investment advisor (RIA) firms nationwide. LPL Financial provides a comprehensive platform that includes integrated technology solutions, brokerage and advisory platforms, and clearing and custody services. The company generates revenue primarily through fees and commissions from products and advisory services offered by their advisors to clients.
- Advisory Services - Offers financial advisory services through a network of advisors, providing personalized investment advice and management.
- Commission - Includes sales-based and trailing commissions from the sale of financial products.
- Sales-based Commission - Earned from the initial sale of financial products.
- Trailing Commission - Generated from ongoing client investments in financial products.
- Asset-based Revenue - Derived from client cash balances and other asset-based fees.
- Client Cash - Revenue from client cash balances held in insured bank sweep vehicles and money market accounts.
- Other Asset-based - Fees from mutual funds, insurance companies, banks, and other financial product sponsors.
- Service and Fee Revenue - Includes fees for various services provided to clients and advisors.
- Transaction Revenue - Generated from transaction fees related to client trading activities.
- Interest Income, Net - Income from interest-earning assets, net of interest expenses.
- Other Revenue - Includes miscellaneous revenue streams not categorized under other segments.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Aneri Jambusaria Executive | Managing Director of the LPL Services Group | None | Aneri Jambusaria joined LPL in 2020 and leads the LPL Services Group, focusing on business services and advisor support. | |
Greg Gates Executive | Managing Director, Chief Technology & Information Officer | None | Greg Gates joined LPL in 2018 and became Chief Technology & Information Officer in July 2021, leading technology solutions and platforms. | |
Matt Audette Executive | President and Chief Financial Officer | None | Matt Audette joined LPL in 2015 as CFO and became President and CFO in October 2024. He has led corporate acquisitions and financial operations, contributing to LPL's growth. | |
Matthew Enyedi Executive | Managing Director, Client Success | None | Matthew Enyedi has been with LPL since 2003, currently leading client success initiatives to enhance advisor and enterprise experiences. | |
Rich Steinmeier Executive | Chief Executive Officer | None | Rich Steinmeier is the CEO of LPL Financial, appointed on October 17, 2024. He joined LPL in August 2018 and has held various leadership roles, contributing significantly to the company's growth. | View Report → |
Allison H. Mnookin Board | Director | Director at Bill Holdings, Inc.; Senior Lecturer at Harvard Business School | Allison H. Mnookin has been a Director since 2018, serving as Chair of the Compensation Committee and bringing extensive technology industry experience. | |
Anne M. Mulcahy Board | Director | Director at Graham Holdings Company; Lead Independent Director at Johnson & Johnson; Trustee at Save The Children Federation, Inc. | Anne M. Mulcahy has been a Director since 2013, with a background in business management and strategic execution from her leadership at Xerox. | |
Edward C. Bernard Board | Director | Chair of the Financial Accounting Foundation; Director of UTI Asset Management Company (India) | Edward C. Bernard has been a Director since 2020, with over 30 years of experience in investment management and leadership roles. | |
H. Paulett Eberhart Board | Director | Chair and CEO of HMS Ventures; Director at Valero Corporation, Fluor Corporation, KORE Wireless | H. Paulett Eberhart has been a Director at LPLA since 2014, bringing extensive managerial experience and serving as Chair of the Audit and Risk Committee. | |
James S. Putnam Board | Independent Chair of the Board | None | James S. Putnam has been a Director since 2005 and Chair of the Board since 2017, with extensive experience in sales and management at LPL Financial. |
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With the recent offboarding of two large OSJs representing approximately $20 billion in client assets due to strategic misalignment, how do you anticipate this will impact your organic growth and asset retention going forward?
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Given the regulatory scrutiny on cash sweep programs at other firms and your decision not to change your sweep pricing, how are you evaluating potential regulatory risks to your cash sweep revenue, and what steps are you taking to ensure compliance and mitigate possible impacts?
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Your advisor loans increased by approximately 12% quarter-over-quarter due to record recruiting and transition assistance; how are you balancing the need for aggressive recruiting with the financial risks associated with higher transition assistance and advisor loans?
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With upcoming maturities of fixed-rate contracts in your ICA portfolio and a current fixed-rate mix at about 70%, how are you positioning your balance sheet to optimize net interest income amid potential changes in the interest rate environment?
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As you invest in vertical integration and new technology platforms like ClientWorks Rebalancer, can you provide more details on the expected timelines, costs, and anticipated returns on these investments, and how they will enhance your competitive positioning?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Atria Wealth Solutions, Inc. | 2024 | Announced on February 13, 2024 and closed on October 1, 2024, this acquisition involved an initial cash payment of approximately $835 million with potential contingent considerations of up to $230 million and an additional $100 million for milestone achievements. It adds roughly 2,400 advisors and $100 billion in assets to LPL’s platform, with integration planned by mid‑2025 pending regulatory approvals. |
Financial Resources Group Investment Services, LLC (FRGIS) | 2023 | Closed on January 31, 2023, this deal featured an initial payment of about $140 million together with contingent payments over three years, enhancing LPL’s addressable markets. The acquisition of this broker-dealer and independent branch office, which supports around 800 advisors managing approximately $40 billion of assets, reflects its strategic fit with LPL’s growth plans. |
Boenning & Scattergood’s Private Client Group | 2023 | Finalized on January 31, 2023, this acquisition brought in a boutique group of approximately 30 advisors managing about $4 billion in assets, with an allocation of $160.7 million for customer relationships and $70.2 million for advisor relationships, plus up to $115.9 million in possible contingent payments. The move supports LPL’s strategy to expand its traditional market reach and address liquidity and succession needs. |
Crown Capital’s Wealth Management Business | 2023 (Planned Close in 2024) | The agreement, signed on July 21, 2023, involves acquiring Crown Capital’s wealth management business, which includes roughly 260 advisors and $6.5 billion of assets; the deal is expected to close in early 2024 pending regulatory approvals. It is strategically designed to provide Crown Capital’s advisors with enhanced access to LPL’s technology, services, and capabilities. |
CUNA Brokerage Services, Inc. (CBSI) | 2022 | Onboarded in the second quarter of 2022, CBSI’s acquisition transitioned about $25 billion of a $30 billion total asset base onto LPL’s platform, servicing around 550 advisors across nearly 300 credit unions. This deal was central to LPL’s strategy to expand its institutional platform and boost organic growth. |
People's United Bank | 2022 | As part of M&T Bank's acquisition of People's United Bank, the retail brokerage and advisory business was onboarded in the second half of 2022; by Q3, approximately $3.0 billion of assets had been transitioned from an original $6 billion base, supporting around 30 advisors. This move aimed to strengthen LPL’s market growth by integrating additional assets and expertise. |
Recent press releases and 8-K filings for LPLA.
- LPL Financial Holdings Inc. announces complementary financing transactions to support the acquisition of Commonwealth Financial Network and bolster corporate liquidity.
- Issued and sold $500 million of each: 4.900% Senior Notes due 2028, 5.150% Senior Notes due 2030, and 5.750% Senior Notes due 2035, secured by supplemental indentures.
- Net proceeds, combined with equity funds and liquidity, are targeted for the acquisition and general corporate purposes.
- Entered an underwriting agreement with Morgan Stanley on March 31, 2025, for a public offering of common stock at $320.00 per share.
- The public offering comprised an initial sale of 4,687,500 shares with an option for an additional 703,125 shares—fully exercised to total 5,390,625 shares sold.
- The offering proceeded under a Form S-3 shelf registration effective March 25, 2025, closing on April 2, 2025, ensuring compliance with regulatory requirements.
- LPL Financial announced the acquisition of 100% of Commonwealth Financial Network for approximately $2.7B in cash, subject to customary closing conditions and regulatory approvals .
- The transaction is scheduled to close in the second half of 2025 with integration of advisors and assets beginning by mid-2026 .
- The deal involves a planned $155M technology spend and about $485M in onboarding/integration costs .
- It is expected to deliver roughly $415M run-rate EBITDA accretion by the end of 2026 along with low single-digit accretion to run-rate adjusted EPS .
- Commonwealth contributes a platform of around 2,900 independent advisors managing approximately $285B in assets, significantly enhancing LPL’s market scale and competitiveness .
- The acquisition aims to preserve Commonwealth’s unique advisor-centric culture and service excellence while broadening LPL’s market position .
- Leadership changes include Commonwealth’s founder taking an advisory role on LPL’s board and its CEO joining LPL’s management committee, reinforcing the strategic partnership .