LPL Financial Agrees To Buy $6.5 Billion California Wealth Firm

Editorial Staff

26 July 2023

LPL Financial has entered a definitive purchase agreement to buy the wealth management business of Crown Capital Securities, a broker-dealer and RIA headquartered in Orange County, California.

Crown, founded in 1999, supports about 260 financial advisors, who serve around $6.5 billion of advisory and brokerage assets.

The financial terms of the transaction, announced yesterday, were not disclosed by New York-listed LPL.

“Through this agreement, Crown advisors will maintain the independence and freedom to innovate, which they have valued at Crown, while enjoying access to LPL’s industry-leading technology and integrated advisor platform,” Jonathan French, president, Crown Capital, said.

The purchase agreement was signed on July 21, 2023, and the transaction is expected to close in early 2024, subject to receipt of regulatory approval and other customary closing conditions.

LPL supports more than 21,000 financial advisors, including advisors at around 1,100 enterprises and at about 500 RIA firms nationwide.

In recent months, the pace of M&A within the RIA space has slackened, affected by rising interest rates and economic uncertainties, according to this report by DeVoe & Company.