CHARLOTTE, N.C. — Linsco Private/Ledger Corp. has made another significant company change, this time announcing its plans to buy UVEST Financial Services, one of the country's largest providers of third-party brokerage services to financial institutions.

Under the terms of the agreement, the UVEST management team will remain in place and continue to operate from its Charlotte headquarters, LPL said. UVEST President/COO Dan Arnold will become CEO of UVEST as well as assume oversight and responsibility for LPL's Financial Institution Services business. He will report to Mark Casady, chairman, CEO and president of LPL. UVEST Founder and Chairman John Robison will retire upon completion of the transaction and assume the title of chairman emeritus. Financial terms were not disclosed and the transaction, still subject to regulatory approval, is expected to close later this year.

The combined company will generate approximately $250 million of annual revenues, LPL said. Independent brokerage firm LPL counts more than 150 credit unions among its more than 6,500 financial institution clients acting as an agent on members and customers' behalf in mutual funds, stocks, fixed income instruments, commodities, options, private and public partnerships, variable annuities, real estate investment trusts, and other investment products transactions. LPL is licensed to operate in all 50 states and Puerto Rico. Casady said combining both brokerages aims to create a “premier provider” with a comprehensive platform of services, products and support for banks, credit unions and other financial institutions of all sizes and at every stage of their development. “It also represents our strengthened commitment to the financial institution channel, and we expect this new stage of LPL's development to generate multiple benefits for our combined organizations, our business partners, and most importantly, our advisors and their clients,” Casady said.

The pending acquisition comes nearly a year after LPL sold 60% of the company in October 2005 to San Francisco-based Hellman & Friedman, LLC and Texas Pacific Group, two private equity investment firms. The remaining 40% was retained by LPL's founders and employees.

On Dec. 28, 2005, BD Acquisition merged into LPL and the latter become wholly owned by BD Investments Holdings, Inc., a newly-formed entity controlled by the private firms.

For advisors and program managers with LPL and UVEST, Casady emphasized the “seamless” nature of the transaction with the leadership, service, support staff, and infrastructure of both companies continuing unchanged.

“We are excited about expanding our offerings to include the innovative marketing support, consultative sales coaching and business consulting provided by UVEST,” Casady said. UVEST brings 230 employees to LPL and will service clients on both East and West Coasts, Casady said. LPL has more than 1,200 employees. Formed in 1989, LPL is the offspring of a merger between two brokerage firms, Linsco, founded in 1968 and Private Ledger, founded in 1973. “From our highly complementary strengths to our passion for empowering our advisors to be successful, UVEST and LPL share similar values, cultures, and strategic objectives, and I am excited about the opportunity to lead UVEST and the FIS business of LPL as we come together to deliver industry-leading investment solutions to the financial institution channel,” Arnold said. –msamaad@cutimes.com

Instant Insights /

One Year After Selling Majority Stake, Linsco Private/Edger Plans to Purchase Brokerage UVEST Financial Services

Related Stories

Recommended For You