Wealth Enhancement Group, a Minneapolis-based registered funding advisor with greater than $96 billion in shopper belongings, is disaffiliating from LPL Monetary, the unbiased 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 helpful partnership for a few years,” stated LPL spokeswoman Jen Roche. “Nonetheless, as each firms proceed to evolve, WEG will not have a relationship with LPL. We stay dedicated to making sure a easy transition for WEG advisors and their shoppers, and we’re assured this shift will in the end profit and improve LPL’s capability to help our valued shoppers. This determination aligns with our strategic intent to focus our investments on partnerships that mirror LPL’s mission and working fashions.”
A Wealth Enhancement spokesperson stated it was an amicable separation, “as every pursues its personal development aims.”
“We’ve got 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 stated there have been a “couple of remoted” OSJ companies that have been “strategically misaligned with our mission and mannequin as a result of they have been limiting advisors’ capability to decide on how and the place they do enterprise.” He additionally stated 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 have been really 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 total ecosystem and place us to raised serve the nice companions on our platform,” Arnold stated on the July earnings name.
In October, Arnold was fired for trigger after an investigation by an outdoor legislation agency discovered “he made statements to workers that violated LPL’s Code of Conduct. Wealthy Steinmeier, who was managing director and chief development officer, has since been named to exchange 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 during the last couple of years. In 2023, it accomplished 18 acquisitions, and 15 offers to date this 12 months, 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 go well with in Minnesota’s Hennepin County, in search of greater than $50,000. In keeping with the go well with, Bernard has over 40 years within the wealth administration trade and co-founded WEG along with his spouse, Madeline, in 1996.
