LPL Financial announced that it agreed to acquire Waltham, Massachusetts-based rival Commonwealth Financial Network for about $2.7 billion.
Commonwealth, founded in 1979, provides integrated business solutions and services for about 2,900 financial advisors and has about $285 billion of combined advisory and brokerage assets.
Before adding Commonwealth, LPL said it supports nearly 29,000 financial advisors and the wealth management practices of about 1,200 financial institutions, providing service and custody for about $1.7 trillion in combined advisory and brokerage assets.
LPL expects to close the deal in the second half of 2025, and complete conversion of Commonwealth to the LPL platform in mid-2026.
After the close, San Diego-based LPL said it will “evaluate opportunities to bring the Commonwealth advisor experience into the broader LPL ecosystem.”
That evaluation will include a review of Commonwealth’s capabilities that were developed in partnership with Advisor360°, the wealthtech firm that started as part of Commonwealth and was spun out as an independent firm in 2019, LPL noted. Advisor360° recently moved its headquarters to Needham, Massachusetts, from nearby Weston.
LPL said it will acquire 100% of the equity of Commonwealth’s holding company. LPL expects to finance the transaction via a combination of cash, debt and equity.
“There are many parallels in how our two firms have come to market and developed over time, pioneering the movement to independence with a common orientation to put advisors first,” Rich Steinmeier, LPL CEO, said during a call with investors that was webcast.
“Our firms have shared a mutual respect for each other as we’ve grown over the decades,” he told analysts. “While we have come to market slightly differently, as we’ve engaged in deeper conversations with them, we learned just how harmonious our two firms are.”
Steinmeier added, “The opportunity to bring them together feels incredibly powerful, not just for LPL and Commonwealth, but for advisors on both sides and the collective 7 million American families we serve.”
“A complement to LPL’s client-centric culture, Commonwealth’s service philosophy enhances the value we’ll collectively bring to all Advisors across the LPL network,” Steinmeier said in a news release. “In addition, LPL’s advanced technology, intuitive business solutions and breadth of wealth management offerings unlock boundless potential for Commonwealth Advisors and the clients they serve.”
As part of the deal, Joseph Deitch, Commonwealth Chairman and Founder, will assume an advisory role to LPL’s Board of Directors through the conversion.
Meanwhile, Wayne Bloom, Commonwealth CEO, will join the LPL Management Committee, partnering to launch a new Office of Advisor Advocacy that LPL said will be “charged with further elevating the service experience for LPL’s growing network of advisors.”
“As we’ve grown our business over the past 46 years, Commonwealth has placed a premium on delivering the industry’s highest standards of service,” Deitch said. “We’ve been diligent in finding a partner that shares our mission of prioritizing Advisor needs above all else. LPL became the logical choice for our next chapter.”
Deitch added, “We are incredibly proud of the culture we’ve nurtured that leverages all opportunities for our Advisors to thrive. To continue supporting this mission, we are confident that LPL’s shared commitment to Advisor centricity, advocacy for Advisor independence, highly experienced team and value-added offerings will serve our Advisors extraordinarily well for the long-term.”
Bloom, who will report to Steinmeier, will continue to lead the Commonwealth community and its “advisor experience,” according to the news release.
“This impressive partnership accelerates our joint competitive advantage, bringing unparalleled value to our Advisors and our employees,” said Bloom. “Commonwealth will retain its brand as part of LPL, and Commonwealth Advisors will continue to benefit from their relationships with our team members, all while taking full advantage of LPL’s scale and platform that fuels its industry-leading offerings.”
Morgan Stanley is acting as exclusive financial advisor to LPL, and Allen Overy Shearman Sterling is serving as LPL’s legal counsel.
Goldman Sachs is acting as exclusive financial advisor to Commonwealth, with Ropes & Gray serving as Commonwealth’s legal counsel.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
