By Andrew Welsch

LPL Financial has bought a minority stake in Private Advisor Group, a wealth management firm with more than $41.3 billion in assets under management as of June 30.

The companies didn't disclose terms of the deal, which became effective Nov. 18. They say the deal will fuel Private Advisor Group's growth and enable it to expand its practice management and succession planning services for advisors.

Morristown, N.J.-based Private Advisor Group uses LPL Financial as its broker-dealer and as a custodian for its registered investment advisor unit, meaning LPL provides the firm with a trading platform and technology, and safeguards client assets on Private Advisor Group's behalf.

Frank Smith, CEO of Private Advisor Group, says the transaction will deepen his firm's 28-year relationship with LPL, which he says has been a champion of Private Advisor Group's growth. "We were able to check a lot of boxes," he says. "We brought on another investor, which is important to fuel further growth, and we could do it in a way that already comports with how we do business and our advisors do business."

An LPL spokeswoman says this isn't the first time that the company has invested in a wealth management firm that uses LPL's platform.

"LPL invests in our advisors and partners in a variety of ways," she says. "Private Advisor Group has long been an important part of the LPL ecosystem. This strategic partnership underscores our confidence in their leadership, vision, and approach to supporting advisors."

LPL is one of the nation's largest wealth management companies. It has more than 32,000 financial advisors and $2.3 trillion in brokerage and advisory assets.

Private Advisor Group is ranked No. 4 on Barron's Top 100 RIA Firms for 2025. It has more than 800 advisors who operate independent practices and rely on Private Advisor Group for additional support and resources. In 2021, it sold a minority stake to Merchant Investment Management. Smith says the firm has six legacy owners who control a majority of the firm.

Private Advisor Group could have done what many wealth management firms have done in recent years and sell a stake to a private-equity firm, but going with LPL brings more benefits, such as succession and liquidity programs, Smith says.

"If we went to a private-equity firm or third-party investor, what would we pick up? Capital," he says. "But we have that box checked. What is unique with LPL, it brings them alongside us as an operator. They have a deep, deep bench of people and resources that helps solve for the needs of the independent advisor."

Write to Andrew Welsch at andrew.welsch@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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November 19, 2025 09:31 ET (14:31 GMT)

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