LPL Financial Selects SS&C To Support Growing Retail Alternatives Business

Rhea-AI Summary

SS&C Technologies Holdings (SSNC) has announced an expanded partnership with LPL Financial Holdings (LPLA), which will now use SS&C ALTSERVE™ to grow its alternatives business. LPL, which already uses SS&C's Brokerage Solutions, will leverage this integration to enhance its alternative investment experience through LPL Alts Connect.

The partnership will enable LPL to streamline back and middle-office functions, standardize data feeds, and improve custody of alternative investment products. Key benefits include enhanced onboarding capabilities, improved position transfers in both taxable and tax-exempt registrations, faster processing of subscriptions and redemptions, and better accuracy in position valuations.

LPL Financial currently supports nearly 29,000 financial advisors and approximately 1,200 financial institutions, managing about $1.7 trillion in brokerage and advisory assets for approximately 6 million Americans.

Positive

• Expansion of existing partnership with major financial institution LPL Financial
• Access to LPL's substantial client base of 29,000 financial advisors and $1.7T in assets
• Enhancement of SS&C's market position in alternative investments processing

Negative

• None.

Insights

Financial Technology Analyst

This strategic partnership marks a significant win for SS&C Technologies in the rapidly expanding alternative investments technology space. The selection by LPL Financial, which manages $1.7 trillion in assets, validates SS&C's ALTSERVE platform and strengthens their position in the wealth management technology sector.

The deal's strategic value extends beyond immediate implementation revenue. By integrating deeply into LPL's alternative investment infrastructure, SS&C creates a strong technological moat and positions itself for recurring revenue streams. The partnership encompasses critical functions including position transfers, tax handling, subscriptions, redemptions, and valuations - essentially becoming embedded in LPL's operational backbone.

Alternative investments are experiencing unprecedented growth in retail wealth management, with platforms like LPL's Alts Connect representing a broader industry shift toward democratizing access to these investments. SS&C's selection for this initiative demonstrates their competitive advantage in handling complex alternative investment operations at scale.

The partnership's scope suggests significant long-term value creation potential. By standardizing data feeds and streamlining back and middle-office functions, SS&C becomes integral to LPL's alternatives business growth strategy. This reference implementation with a major industry player could accelerate SS&C's ability to win similar enterprise clients, particularly as more wealth management firms expand their alternative investment offerings.

WINDSOR, Conn. , Feb. 24, 2025 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that LPL Financial Holdings, Inc. (Nasdaq: LPLA), a leading provider of investment and business strategies for financial advisors, has broadened its relationship with SS&C Technologies. LPL Financial (LPL), which uses SS&C's Brokerage Solutions, will leverage SS&C ALTSERVE™ to grow its alternatives business.

"LPL has launched LPL Alts Connect to enhance the overall alternative investment experience, broaden our available investment suite, and enhance education and awareness across our advisor base," said Cheri Belski, Executive Vice President and Head of Investment Management Solutions for LPL. "The integration with SS&C will help streamline back and middle-office functions and standardize data feeds, allowing for the custody of more alternative investment products at LPL and more efficient day-to-day processing."

LPL will be able to offer its advisor network a better client experience through:

• The ability to onboard and transfer more alternative investment positions to LPL custody
• Increased capacity to transfer positions in both taxable and tax-exempt registrations
• Expedited subscriptions, redemptions, transfers, distributions, capital call processing, and more
• Improved timeliness and accuracy of position valuations and reconciliation on LPL's platform and on account statements

"We are thrilled to expand our valued relationship with LPL Financial as they grow their alternatives business," said Nicole Greene, Head of Global Investor and Distribution Solutions, U.S. "SS&C has extensive experience creating solutions to address alternative investment processing, brokerage, and transfer agency needs. We look forward to expanding our partnership with LPL Financial to streamline these complex operations and elevate service as their business grows."

Learn more about SS&C ALTSERVE™ here.

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 nearly 29,000 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 approximately 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 LLC ("LPL Financial"), a registered investment advisor and broker-dealer, member FINRA/SIPC.

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, 2024.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. More than 22,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.

Additional information about
SS&C (Nasdaq: SSNC) is available at www.ssctech.com.
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SOURCE SS&C

FAQ

What is the purpose of LPL Financial's partnership with SS&C (SSNC) announced in February 2024?

LPL Financial will use SS&C ALTSERVE™ to grow its alternatives business, streamline back and middle-office functions, and enhance the alternative investment experience for its advisor network.

How many financial advisors and assets will SS&C (SSNC) service through the LPL partnership?

Through this partnership, SS&C will support LPL's network of nearly 29,000 financial advisors and approximately $1.7 trillion in brokerage and advisory assets.

What specific improvements will SS&C ALTSERVE™ bring to LPL's alternative investment platform?

SS&C ALTSERVE™ will enable improved onboarding, position transfers in taxable and tax-exempt registrations, faster processing of subscriptions and redemptions, and enhanced position valuations accuracy.

How will the SS&C (SSNC) partnership affect LPL's Alts Connect platform?

The partnership will enhance LPL's Alts Connect platform by streamlining back-office functions, standardizing data feeds, and improving custody capabilities for alternative investment products.