Wealth Enhancement Group, a Minneapolis-based registered funding advisor with greater than $96 billion in shopper belongings, is disaffiliating from LPL Monetary, the impartial dealer/supplier has confirmed. WEG operated as a brilliant workplace of supervisory jurisdiction of LPL for the final 17 years, and the change will take impact June 30, 2025.
“LPL and WEG have loved a mutually useful partnership for a few years,” mentioned LPL spokeswoman Jen Roche. “Nevertheless, as each corporations proceed to evolve, WEG will now not have a relationship with LPL. We stay dedicated to making sure a clean transition for WEG advisors and their shoppers, and we’re assured this shift will finally profit and improve LPL’s means to assist our valued shoppers. This choice aligns with our strategic intent to focus our investments on partnerships that mirror LPL’s mission and working fashions.”
A Wealth Enhancement spokesperson mentioned it was an amicable separation, “as every pursues its personal development goals.”
“We have now appreciated their partnership through the years and are working in shut cooperation to easily transition the roughly 10% of our shoppers’ belongings affiliated with LPL to different custodians and companions.”
The agency declined to call its future dealer/supplier.
On a July earnings name, LPL’s former CEO Dan Arnold mentioned there have been a “couple of remoted” OSJ companies that had been “strategically misaligned with our mission and mannequin as a result of they had been limiting advisors’ means to decide on how and the place they do enterprise.” He additionally mentioned the 2 companies represented $20 billion in mixed belongings.
Matt Audette, CFO and president of LPL, added on that very same earnings name that these OSJs weren’t rising and had been truly a drag on natural development.
In late July, Advantage Monetary Advisors, with $12 billion in belongings, disaffiliated from LPL and moved its enterprise to PKS Investments.
“On the finish of the day, these separations will strengthen our general ecosystem and place us to higher serve the nice companions on our platform,” Arnold mentioned on the July earnings name.
In October, Arnold was fired for trigger after an investigation by an out of doors regulation agency discovered “he made statements to staff that violated LPL’s Code of Conduct. Wealthy Steinmeier, who was managing director and chief development officer, has since been named to switch him as CEO.
As of Sept. 30, WEG had $4 billion of brokerage belongings held at LPL.
Based in 1997, WEG has grown belongings from round $4 billion to greater than $96 billion since promoting a majority stake to Lightyear Capital in 2015.
WEG was overseeing some $12 billion by the point TA Associates purchased out Lightyear’s funding in 2019. When Onex Companions got here on board as a majority proprietor in 2021, the agency was managing near $40 billion.
The agency has been aggressively buying RIAs over the past couple of years. In 2023, it accomplished 18 acquisitions, and 15 offers to date this yr, following its most up-to-date take care of M&R Capital Administration, a Summit, N.J.-based RIA with greater than $536 million in shopper belongings.
In July, a person who claims to have co-founded WEG filed a lawsuit in opposition to the RIA, claiming it reneged on paying him “finder’s charges” for companies the corporate acquired.
Gerald “Jerry” Bernard filed the swimsuit in Minnesota’s Hennepin County, searching for greater than $50,000. Based on the swimsuit, Bernard has over 40 years within the wealth administration trade and co-founded WEG along with his spouse, Madeline, in 1996.
