LPL Financial Welcomes Prestige Wealth Group

Rhea-AI Summary

LPL Financial (Nasdaq: LPLA) announced that Prestige Wealth Group (PWG) has joined their broker-dealer, RIA and custodial platforms from Osaic. The team, led by managing partners Rich Galgano and Matt Geraci, serves approximately $540 million in advisory, brokerage and retirement plan assets. Based in Franklin Lakes, N.J., and Westchester, Pa., PWG focuses on high-net-worth clients, offering holistic financial planning services.

The transition to LPL was driven by the firm's advanced technology, strategic support, and dedication to advisor empowerment. LPL Financial currently supports over 28,000 financial advisors and approximately 1,200 financial institutions, managing about $1.7 trillion in brokerage and advisory assets for 6 million Americans.

Positive

• Addition of $540 million in managed assets to LPL's platform
• Expansion of LPL's advisor network in strategic Northeast markets
• Continued growth in high-net-worth client segment

Negative

• None.

Insights

Financial Analyst

The acquisition of Prestige Wealth Group, managing $540 million in assets, represents a strategic addition to LPL Financial's growing wealth management platform. While modest relative to LPL's total $1.7 trillion in assets under custody, PWG's focus on high-net-worth clients aligns with LPL's strategy to expand in the affluent market segment. The transition from Osaic (formerly Advisor Group) continues LPL's trend of recruiting established practices, strengthening its competitive position against traditional wirehouses and independent broker-dealers.

PWG's emphasis on serving high-net-worth clients could generate higher revenue per advisor and potentially better margins compared to mass-market focused practices. The deal demonstrates LPL's continued ability to attract substantial practices through its technology platform and operational scale, though its immediate financial impact will be minimal given LPL's size.

Market Research Analyst

The addition of PWG exemplifies the ongoing consolidation trend in the wealth management industry, where smaller practices increasingly seek larger platforms offering enhanced technology and operational support. LPL's success in attracting teams from competitors highlights its strong value proposition in the independent advisor space. The firm's recent recruiting momentum and growing market share in the RIA custody business suggests its platform investments are resonating with advisors.

PWG's transition reflects a broader industry shift where advisory practices are becoming more selective with their target clientele, focusing on higher-value relationships rather than pursuing volume. This strategic approach typically leads to better client retention and more stable revenue streams, benefiting both the practice and the platform provider.

SAN DIEGO, Dec. 12, 2024 (GLOBE NEWSWIRE) -- LPL Financial LLC (Nasdaq: LPLA) announced today that the advisors of Prestige Wealth Group (PWG), led by managing partners Rich Galgano, CFP®, and Matt Geraci, CFP®, have joined LPL Financial’s broker-dealer, RIA and custodial platforms. They reported serving approximately $540 million in advisory, brokerage and retirement plan assets* and join LPL from Osaic.

Headquartered in Franklin Lakes, N.J., and Westchester, Pa., Prestige Wealth Group was established in 2007 by Mark Fleksher, who remains with the team as a consultant. The firm’s managing partners, Galgano and Geraci, were hockey teammates in college and have worked together since 2020 to exponentially grow their practice organically and through acquisitions. They are joined by team members Chris Rich, Paul Goldman and Alan Concha, CFP®. Together, they are committed to providing steadfast services and holistic financial plans that address the unique goals and complexities of each client’s financial situation.

“Every advisor on our team has a true passion for helping guide clients toward their financial aspirations and ambitions,” Geraci said. “We offer advanced services for all phases of a person’s financial journey, and in recent years we’ve shifted our practice to focus on affluent clients in the high-net-worth space. We want to be everything to a select few, instead of something to everyone.”

Their move to LPL followed an extensive search for a new firm where they can grow and deliver more value to their range of high-net-worth clients.

“Our decision to align with LPL was based on the firm's advanced technology, strategic support and dedication to empowering advisors to deliver optimal client experiences,” Galgano said. “We appreciate that LPL gives us stability and scale as a Fortune 500 company, along with the autonomy to serve clients as we see fit. With smoother processes and an upgrade in the ease of doing business, we are confident that our business and clients will be set up for more continued success.”

Scott Posner, LPL Executive Vice President, Business Development, said, “We welcome Rich, Matt and the entire PWG team to LPL. We’re committed to providing advisors with innovative capabilities and differentiated service experiences so they can run efficient, productive and client-centered businesses. We look forward to supporting Prestige Wealth Group today and into the future by offering choice and flexibility in how they do business.”

Related

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About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace, LPL supports more than 28,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker dealer, member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States. Prestige Financial Group and LPL 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.

We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

*Value approximated based on asset and holding details provided to LPL from end of year, 2023.

Media Contact: 
Media.relations@LPLFinancial.com 
(704) 996-1840

Tracking #668092

FAQ

How much in assets did Prestige Wealth Group bring to LPL Financial (LPLA) in December 2023?

Prestige Wealth Group brought approximately $540 million in advisory, brokerage and retirement plan assets to LPL Financial.

What is LPL Financial's (LPLA) total assets under management as of December 2023?

LPL Financial services and custodies approximately $1.7 trillion in brokerage and advisory assets.

How many financial advisors does LPL Financial (LPLA) support?

LPL Financial supports more than 28,000 financial advisors and approximately 1,200 financial institutions.

Which firm did Prestige Wealth Group leave to join LPL Financial (LPLA)?

Prestige Wealth Group joined LPL Financial from Osaic.

Where are Prestige Wealth Group's offices after joining LPL Financial (LPLA)?

Prestige Wealth Group is headquartered in Franklin Lakes, N.J., and Westchester, Pa.