Prudential Moving $50B Wealth Business, 2,600 Advisors to LPL 

Through a “strategic relationship agreement,” Prudential Financial, through a “strategic relationship agreement” will transfer approximately $50 billion in client assets, including approximately $37.5 billion in brokerage and $12.5 billion in investment advisory assets, to the platform of independent broker and custodian LPL Financial. 

More than 2,600 Prudential advisors will now be able to use LPL’s broker-dealer and registered investment advisory services. 

Newark, NJ-based Prudential, which oversees more than $1.4 trillion in assets under management, previously had a relationship with LPL through its life and annuities line of business. Access to LPL’s technology and resources will assist its wealth management advisors scale their firms. 

“LPL’s best-in-class platform will significantly improve capabilities to help our advisors serve clients and grow their practice even faster,” said Brad Hearn, president of Retail Advice and Solutions at Prudential. “With this agreement, we are further investing in our Prudential Advisors business, while streamlining and reducing back-office resource demands.” 

The transition, expected to close in the fourth quarter of 2024, will incur $125 million in onboarding costs. However, the move will eventually add $60 million per year to LPL’s earnings before interest, taxes, depreciation and amortization (EBITDA), according to its investor presentation. 

The Prudential deal comes only three days after LPL announced the addition of Arizona-based Watermark Wealth Management, a $1.5 billion 16-advisor team formerly with Kestra Financial.