LPL Financial announced that it has entered into a definitive purchase agreement to acquire Commonwealth Financial Network, the country’s largest independently owned wealth management firm.
Based in Waltham, Massachusetts, Commonwealth provides integrated business solutions and services for approximately 2,900 financial advisors and manages approximately $285 billion of brokerage and advisory assets.
Commonwealth Chief Executive Officer Wayne Bloom will join LPL’s Management Committee and report to Steinmeier, and will continue to lead the Commonwealth community and their advisor experience. And he will also partner with the LPL leadership team to launch LPL’s Office of Advisor Advocacy, charged with further elevating the service experience for LPL’s growing network of advisors.
The deal is expected to close in the second half of 2025, and the conversion to the LPL platform is expected to be completed in mid-2026, subject to the receipt of regulatory approvals and other conditions.
Following the closing of the deal, LPL will evaluate opportunities to bring the Commonwealth advisor experience into the broader LPL ecosystem, including reviewing key capabilities at Commonwealth that have been developed in partnership with Advisor360°.
Under the deal structure, LPL will acquire 100 percent of the equity of the holding company of Commonwealth for a purchase price of approximately $2.7 billion in cash. And LPL anticipates financing this transaction through a combination of corporate cash, debt and equity, resulting in credit agreement leverage of roughly 2.25x following the close of the transaction, with a near-term path to reduce leverage to the midpoint of its stated range of 1.5x to 2.5x.
KEY QUOTES:
“Commonwealth is respected throughout our industry as a standard-bearer for service excellence, and their commitment to the success of their Advisors is embedded in all aspects of their business. 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. 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.”
– Rich Steinmeier, LPL Financial chief executive officer
“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. 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. 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.”
– Joseph Deitch, Commonwealth founder, who will assume an advisory role to LPL’s Board of Directors through the conversion
“This impressive partnership accelerates our joint competitive advantage, bringing unparalleled value to our Advisors and our employees. 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.”
– Wayne Bloom
