LPL Financial Selects SUBSCRIBE to Modernize Alternative Investment Platform

Rhea-AI Summary

LPL Financial Holdings Inc (NASDAQ: LPLA) has selected SUBSCRIBE to modernize its alternative investments platform. The partnership aims to digitalize and streamline private fund investment workflows for LPL's network of over 28,000 financial advisors serving 8.0 million investors with more than $1.8 trillion in client assets.

The customized platform centralizes alternative investment products, advisor education, compliance controls, and investment workflows on a single operating system. LPL had previously launched a pilot Alternative Investment Order Entry (AIOE) system in Q2 2024, receiving positive feedback from advisors. Through SUBSCRIBE's open-architecture platform, LPL Financial Advisors can manage investments across various products, including private equity, private credit, real estate, hedge funds, and other investment vehicles.

The platform features compliance overlays for monitoring and supervision, validating advisor registrations, account pre-qualification, and regulatory controls. It integrates with CRMs, custodians, fund administrators, and other software providers to support the complete investment lifecycle.

Positive

• Platform modernization to enhance advisor and client experience in alternative investments
• Integration with existing systems to streamline investment workflows
• Enhanced compliance controls and monitoring capabilities
• Expansion of alternative investment offerings to attract wirehouse and regional advisors

Negative

• None.

Insights

Financial Technology Analyst

The strategic implementation of SUBSCRIBE's alternative investment platform marks a pivotal transformation in LPL Financial's technological infrastructure, with significant implications for their market positioning and operational efficiency. This move addresses three critical business objectives:

Competitive Advantage and Market Share: By digitalizing the alternative investment process, LPL strengthens its value proposition for both existing and prospective advisors, particularly those transitioning from wirehouses. The platform's comprehensive functionality - including automated compliance controls and streamlined workflows - directly addresses the complexities that typically deter advisors from incorporating alternative investments into client portfolios.

Operational Scalability: The integration capabilities with existing CRMs, custodians, and reporting systems position LPL to efficiently scale its alternative investment offerings without proportional increases in operational overhead. This technological foundation enables LPL to expand its product menu while maintaining robust compliance oversight and reducing manual processing costs.

Revenue Growth Catalyst: The platform's ability to simplify alternative investment access and education could drive increased adoption among LPL's advisor base. This is particularly significant given the growing demand for alternative investments in retail portfolios and the higher revenue potential these products typically offer compared to traditional investments.

The timing of this implementation aligns with broader industry trends toward increased alternative investment allocation in retail portfolios, positioning LPL to capture a larger share of this growing market segment while maintaining operational excellence and compliance standards.

The customized alternative investments platform offers one of the Nation's Largest
Independent Wealth Management Firms an unparalleled suite of functionality
to digitally transform their private fund investment workflows from start to finish.

NEW YORK, Feb. 20, 2025 /PRNewswire/ -- SUBSCRIBE, the leading operating system for alternative investments that digitalizes the investment process for fund managers, institutional investors, wealth managers, law firms, and fund administrators, today announced that is has been selected by LPL Financial Holdings Inc (Nasdaq: LPLA, ("LPL")) to build a highly customized and fully integrated platform solution to modernizes the firms alternative investments program. LPL is one the nation's largest independent wealth management firms with over 28,000 financial advisors (including advisors at approximately 1,200 enterprises, and 560 registered investment advisor ("RIA") firms) that collectively serve over 8.0 million investors nationwide and oversee more than $1.8 trillion in client assets, including Equitable Advisors and Prudential Advisors. Through SUBSCRIBE, LPL is able to centralize their alternative investment products, advisor education, compliance controls, and investment workflows on a single operating system.

"We have been looking to elevate the advisor and client experience to set them up for success when allocating to alternatives," said Aneri Jambusaria Managing Director, Head of Wealth Management at LPL Financial. "As we explored the available options in the market, we found that SUBSCRIBE's cutting-edge technology platform delivered a cross-functional suite that was unmatched."

During LPL Financial Holdings Inc 3Q 2024 Earnings Call, CEO Rich Steinmeier discussed LPL's strategic decision to significantly expand their alternative investment offering to meet the needs of wirehouse and regional advisors that are more and more choosing to join the firm, when he commented that:

"Inside of alts, over the last year, we've made significant progress in building towards a world-class platform. Specifically, this year, we've deployed a new alternative investment order entry system which we launched in the second quarter with a pilot set of advisors and have gotten a lot of feedback on. And in fact, we have used that launch in the second quarter to build and enhance what we call AIOE, our Alternative Investment Order Entry system, so that it's much more intuitive and has better capabilities in support of a broad deployment at the end of the fourth quarter. The feedback that we've got from the advisors who went on the pilot has been incredibly positive."¹

Through SUBSCRIBE's open-architecture platform, LPL Financial Advisors can discover, research, educate, transact, and manage investments across a highly curated menu of products, including private equity, private credit, real estate, hedge funds, 1031 exchanges/DSTs, exchange funds, and feeder funds formed by SUBSCRIBE or other providers.

At the same time, LPL Home Office and Compliance professionals, gain additional confidence in the alternative investments made for clients from the innovative compliance overlays SUBSCRIBE provides that allow for monitoring and supervision. These modules validate advisor registrations and education requirements, account pre-qualification and suitability, sales-kit delivery, and a myriad of additional regulatory and firm specific controls relating to concentration limits and state restrictions for each fund investment, all in real-time and as part of a single flow.

"We were looking for a trusted long-term partner and what attracted us to SUBSCRIBE was the technology leadership and innovation they have demonstrated," said Kate Winters, Senior Vice President, Investment Product Management & Retirement Partners at LPL Financial. "They have made simple what is otherwise complex and built a compliant process that meets all of our needs and gives us extreme control as we scale our product offerings."

SUBSCRIBE's platform seamlessly integrates with any organization's software ecosystem, including CRMs, leading custodians, fund administrators, law firms, trading, and reporting software providers. The solution provides complete investment lifecycle support for pre-trade, at-trade workflows, and automates post-trade collection investment data for downstream reporting through SUBSCRIBE Extract.

"We are pleased to be the exclusive operating solution for LPL's alternative investment program," said Rafay Farooqui, Founder and CEO at SUBSCRIBE. "Our platform's ability to integrate seamlessly with large complex organizations to deliver a single super-platform that can centralize and operate any fund, any investor, anywhere in the world positions LPL financial advisors, clients, and fund manager partners for success."

^{Footnote 1. https://investor.lpl.com/static-files/87fd7529-c98b-4e8a-b34f-8bbce8923eb6}

About SUBSCRIBE
SUBSCRIBE is a fintech company digitally transforming the landscape of alternative investments for fund managers, institutional investors, wealth managers, law firms, and fund administrators. Our platform technology modernizes the archaic infrastructure of private fund investments by delivering a central operating system — catering to every role within the investment process empowering them to connect any fund, any investor, anywhere in the world on a single platform. SUBSCRIBE supports over $6 trillion in private market assets and is the trusted technology partner to thousands of firms that rely on our end-to-end enterprise solution to scale their private market investment programs and manage investment processes across pre-trade, trade, and post-trade fund workflows. For additional information, visit www.subscribeplatform.com or follow the company on LinkedIn.

About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that LPL should work for advisors and enterprises, and not the other way around. Today, LPL is a leader in the markets we serve, serving more than 28,000 financial advisors, including advisors at approximately 1,200 enterprises and at approximately 560 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial professional. At LPL, independence means that advisors and enterprise leaders have the freedom they deserve to choose the business model, services and technology resources that allow them to run a thriving business. They have the flexibility to do business their way. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors and enterprises, so they can take care of their clients.

Securities and Advisory services offered through LPL Financial LLC ("LPL Financial"), a registered investment advisor. Member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States. Doherty Financial Service and LPL Financial are separate entities.

Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

Contact:
info@subscribeplatform.com

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SOURCE SUBSCRIBE

FAQ

What is the purpose of LPL Financial's (LPLA) partnership with SUBSCRIBE?

LPL Financial partnered with SUBSCRIBE to modernize its alternative investments platform, centralizing investment products, advisor education, compliance controls, and workflows on a single operating system.

How many financial advisors and assets does LPLA manage as of 2025?

LPL Financial has over 28,000 financial advisors serving 8.0 million investors and oversees more than $1.8 trillion in client assets.

When did LPLA launch its Alternative Investment Order Entry (AIOE) system pilot?

LPL Financial launched the AIOE system pilot in the second quarter of 2024.

What types of alternative investments will be available through LPLA's new platform?

The platform will offer private equity, private credit, real estate, hedge funds, 1031 exchanges/DSTs, exchange funds, and feeder funds.

What compliance features does the new LPLA SUBSCRIBE platform include?

The platform includes compliance overlays for monitoring advisor registrations, education requirements, account pre-qualification, suitability checks, and regulatory controls for concentration limits and state restrictions.