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/seller 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. “Nevertheless, 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 purchasers, and we’re assured this shift will finally profit and improve LPL’s potential to assist our valued purchasers. This choice aligns with our strategic intent to focus our investments on partnerships that replicate LPL’s mission and working fashions.”
A Wealth Enhancement spokesperson stated it was an amicable separation, “as every pursues its personal progress aims.”
“We have now appreciated their partnership over time and are working in shut cooperation to easily transition the roughly 10% of our purchasers’ belongings affiliated with LPL to different custodians and companions.”
The agency declined to call its future dealer/seller.
On a July earnings name, LPL’s former CEO Dan Arnold stated there have been a “couple of remoted” OSJ corporations that had been “strategically misaligned with our mission and mannequin as a result of they had been limiting advisors’ potential to decide on how and the place they do enterprise.” He additionally stated the 2 corporations 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 progress.
In late July, Benefit 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 higher serve the good companions on our platform,” Arnold stated 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 workers that violated LPL’s Code of Conduct. Wealthy Steinmeier, who was managing director and chief progress 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 during the last couple of years. In 2023, it accomplished 18 acquisitions, and 15 offers thus far this yr, following its most up-to-date cope with 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 towards the RIA, claiming it reneged on paying him “finder’s charges” for corporations the corporate acquired.
Gerald “Jerry” Bernard filed the swimsuit in Minnesota’s Hennepin County, looking for greater than $50,000. In response to the swimsuit, Bernard has over 40 years within the wealth administration business and co-founded WEG together with his spouse, Madeline, in 1996.
