LPL Financial Continues Growth as Wealth Management Platform
LPL Financial continues to solidify its position as a leading wealth management platform for banks, credit unions, and financial-services companies with the addition of another significant customer.
Wintrust Financial Makes Strategic Move
Wintrust Financial, a regional bank headquartered in Rosemont, Ill., has made the strategic decision to transfer the wealth management business of its broker-dealer, Wintrust Investments, to LPL Financial’s platform. With $13 billion in brokerage and advisory assets under management, Wintrust Investments brings substantial value to the partnership.
Expansion of Services
In addition to relocating the assets from Wintrust Investments, Wintrust is also transferring approximately $3 billion of private-client assets from its registered investment advisor, Great Lakes Advisors, to LPL Financial. Great Lakes Advisors manages a total of $17 billion in advisory assets, further boosting LPL’s portfolio.
Significant Transition
A total of 85 financial advisors and $16 billion worth of assets are set to transition to LPL’s platform in the first quarter of 2025, pending regulatory approval. Currently, Wintrust holds client assets at Wells Fargo’s First Clearing unit, which will soon be shifted to LPL Financial.
CEO’s Perspective
Tom Zidar, CEO of Wintrust Wealth Management, highlighted that the decision to partner with LPL Financial was the result of an 18-month evaluation of institutional partners. The advanced technology, capabilities, and integrated platform offered by LPL surpassed what Wintrust could achieve independently, making it the ideal choice for the collaboration.
This move underscores LPL Financial’s commitment to innovation and growth in the wealth management sector.
Wintrust to Join LPL’s Institutional Platform
Confidence in LPL’s Capabilities
During a recent statement, Zidar expressed confidence in the scale of LPL’s institutional business and its track record of supporting banks like Wintrust. This assurance led Wintrust to believe that LPL could meet their needs effectively.
Growing Partnership
Wintrust is set to become the 31st customer to join LPL’s institutional platform, marking a significant milestone for both parties. This development closely follows LPL’s intention to acquire Atria Wealth Solutions, a company that caters to approximately 2,400 advisors and 150 banks and credit unions with around $100 billion in brokerage and advisory assets.
LPL’s Ascendancy in Wealth Management
Based in San Diego, LPL has solidified its position as one of the leading wealth management firms in the nation. With over 22,000 advisors and $1.35 trillion in assets by the end of the fourth quarter, LPL has established itself through strategic recruiting and acquisitions. Notably, around $1 trillion of its assets reside in its advisor channel, while $330 billion are in its enterprise channel. As of Thursday afternoon, the stock has climbed 15% this year.
Industry Expert Insights
Christopher Cassidy, the head of institution business development at LPL Financial, highlighted how LPL has benefited from industry consolidation and the growing demand for enhanced scale and efficiency within the wealth management sector. Cassidy noted the increasing challenges associated with operating a successful wealth business and developing a robust platform.