SAN DIEGO — XCU Capital Corp., the credit union-owned broker dealer that served more than 30 credit unions, was quietly bought in August 2007 by LPL Financial Corp, an independent broker-dealer considered to be the largest of its kind in the country with more than 800 clients and $235 billion in assets under management.

According to SEC company filings, LPL Holdings, Inc., a wholly-owned subsidiary of LPL Investment Holdings Inc., entered into an institutional transfer agreement with XCU Capital on Aug. 9, 2007 to transfer and assign existing institutional relationships for a price of $3.62 million.

Heather Randolph Carter, vice president of corporate marketing at LPL, said 23 credit unions converted to LPL Financial from XCU.

Former XCU Capital CEO Mark Hoaglin is now the senior vice president over credit union relationships for LPL Financial. Hoaglin said the acquisition was “in the best interest of [XCU]'s clients.”

“As the nation's largest provider of investment services to credit unions, LPL Financial was able to offer an attractive combination of products, technology, and support that are difficult for a smaller broker/dealer to match,” Hoaglin said. “With approximately 200 credit union partners, LPL Financial has a demonstrated commitment to the credit union industry that was very appealing. They have since furthered this commitment by establishing a credit union advisory council for these important clients.”

Instant Insights /

XCU Capital Quietly Bought by LPL Financial

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