LPL Financial (LPLA) to Buy Wealth Business of Crown Capital
LPL Financial Holdings LPLA has announced a definitive agreement to acquire the wealth management business of Crown Capital Securities, L.P. This marks a significant step for both companies and is expected to be finalized in early 2024, pending regulatory approval and customary closing conditions.
Crown Capital is a full-service broker-dealer and registered investment advisor based in Orange County, CA. Founded in 1999, the firm has roughly 260 financial advisors supporting approximately $6.5 billion of advisory and brokerage assets. The services provided by it include investment management, estate planning, risk management, education planning, corporate benefits, full-service brokerage and alternative investments.
LPLA's industry-leading platform is expected to provide Crown Capital advisors with enhanced operational support, streamlined processes and access to cutting-edge technology and integrated advisor tools. While Crown Capital advisors will enjoy the benefits of LPL Financial's robust infrastructure, they will maintain their independence, continuing to serve the clients with the same dedication and commitment they have exhibited throughout the years.
Rich Steinmeier, LPL Financial's managing director and divisional president of Business Development, expressed confidence that the acquisition would allow Crown Capital advisors to strengthen their client relationships and expand their service offerings. Moreover, Jonathan French, president of Crown Capital, highlighted the potential for advisors to flourish under LPL Financial's guidance, ensuring their practices thrive while preserving their longstanding personal connections with clients.
The acquisition signifies a strategic move for LPLA, reinforcing its position as a leading wealth management service provider and expanding its footprint in the competitive California market. Over the years, the company has accomplished several strategic buyouts that have helped diversify revenues and bolster growth.
This February, LPL Financial acquired FRGIS and the Private Client Group business of Boenning & Scattergood. In 2021, it acquired Waddell & Reed's wealth management business, while in 2020, the company acquired Blaze Portfolio, the assets of E.K. Riley Investments, LLC and Lucia Securities.
Shares of LPLA have rallied 14.8% over the past three months, outperforming the industry’s 11.8% growth.
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Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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AMG, with its strong balance sheet and liquidity position, has considerable capability to invest in other companies and generate meaningful growth through new investments.
SEI Investments (Europe) Limited, a subsidiary of SEI Investments SEIC, announced a deal to acquire the outstanding equity of XPS Pensions (Nexus) Limited, the principal employer and scheme funder of the National Pensions Trust, from XPS Pensions Group PLC. The total cash consideration for the acquisition is up to £42.5 million, with an initial payment of £35 million at closing and deferred consideration of up to £7.5 million over two years, subject to post-closing performance measurements.
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Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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