LPL Financial, the nation’s largest independent broker-dealer, has unveiled a new advisor affiliation model, LPL Private Wealth Management, catering to advisors specializing in high-net-worth clientele. This initiative aims to provide advisors with the resources they may typically have at a wirehouse, coupled with higher payouts and more business autonomy, among other advantages.
“Private Wealth provides advisors with a tremendous opportunity to own their business and effectively serve their clients’ needs at a large organization that provides safety and stability while also creating a boutique and personalized experience,” Anna Howard, senior vice president, Private Wealth, said in a released statement. “With higher payouts, cutting-edge technology, and specialized resources, Private Wealth represents a unique and attractive offering in the industry.”
According to a spokesperson, the payout for the new private wealth channel will be between 64% to 70% of an advisor’s revenue. Private wealth advisors will also receive additional support in the form of a dedicated team of specialists who may provide access to alternative investments like private equity, private real estate, and private credit.
The launch of Private Wealth comes more than a year after LPL CEO Dan Arnold first outlined LPL’s plans to bring greater investment and banking services to the firm’s high-net-worth clients during LPL’s 2022 Investor and Analyst Day. Additionally, LPL has expanded its service portfolio to bolster the operations of high-net-worth advisors. This includes cultivating partnerships with investment banks and providing clients with direct access to capital markets. Additionally, the firm has established specialized lending partnerships for assets such as yachts, aircraft, and art, while also broadening access to alternative investments.
According to the company, LPL currently serves approximately $130 billion in high-net-worth AUM and offers resources such as advanced estate and philanthropy planning, income tax strategy, trustee services, robust alternative investment platform, banking and lending solutions, and complex life insurance planning.
As reported previously by The DI Wire, LPL reported a net income of $224 million in the third quarter of 2023. Recruited assets during the same time period totaled $31 billion. LPL supports approximately 22,000 financial advisors, 1,100 institution-based investment programs, and 560 independent registered investment advisor firms nationwide.