LPL Launches Alts PlatformLPL Launches Alts Platform

LPL Financial has launched LPL Alts Connect, a full-service platform where advisors can research, purchase and manage alternative investments.

The platform is a centralized, digitized system that provides tools such as prequalification, e-signature capabilities and the ability to send sales kits directly to clients.

Alts Connect’s investment management capabilities are powered by alts tech provider SUBSCRIBE, which provides the technology infrastructure for digitizing the alternative investment subscription and reporting processes.

The independent broker/dealer currently offers about 80 alternative investment options to its advisors, in part vetted through its partnership with iCapital (although it will continue to review and vet additional options). Those include interval funds, REITs and BDCs and cover asset classes such as real estate, private equity, venture capital and private credit.

In addition, LPL announced it had enhanced its middle office services through a partnership with SS&C by introducing SS&C ALTSERVE, which improves custodial and reporting services, offering faster turnaround times for transitioning alternative investments between firms. LPL has also formed a dedicated team to support and educate advisors on these new services, rounding out their support in the alternative investment space.

“For us, it is critical on alternatives to deliver on technology, product and education,” said Cheri Belski, executive vice president and head of investment management solutions for LPL. “We appreciate that a lot of advisors want to make sure that they can be confident to deliver to end clients how alternatives can play a role as appropriate. We think by building our capabilities across technology, product and education, that we can do just that.”

Belski added the move was driven in part by seeing LPL advisors shift to a wealthier clientele, for whom alternative investments become a more important option.

“That’s where we see advisors heading, so they are going to need enhanced technology and capabilities,” Belski said.

Some of the system’s functionality includes e-signature capabilities for streamlined transactions, real-time order status updates on a custom dashboard, a single platform for all alts investments, comprehensive fund information built into the system, one-time setup for prequalification, sales kits to use with clients and LPL compliance reviews on all documents. As a result, LPL estimates turnaround time on subscriptions will be reduced from 40 days to 14.

“It’s almost like we are building a house, but if you don’t get the plumbing right, it’s not really a nice house,” Belski said. “We had the products and the education. Adding this component takes some of the stickier points and makes it all easier.”

“Through SUBSCRIBE’s open-architecture platform, LPL financial advisors can discover, research, educate, transact, and manage investments across a highly curated menu of products, including private equity, private credit, real estate, hedge funds, 1031 exchanges/DSTs, exchange funds, and feeder funds formed by SUBSCRIBE or other providers,” said Rafay Farooqui, Founder and CEO at SUBSCRIBE. “We are pleased to be LPL’s solution for their alternative investments program–our expertise to integrate seamlessly with large complex organizations delivers them a single super-platform that can centralize and operate any fund, any investor, anywhere in the world and positions LPL financial advisors, clients, and fund manager partners for success.”

The unveiling of Alts Connect is the latest in a series of service enhancements rolled out by LPL.

Earlier this week it launched business planning tools designed to help its network of nearly 29,000 financial advisors provide personalized support to their clients who are CEOs or business owners. The service connects advisors with certified business exit planners to help clients exploring succession planning options.

In addition, in October, LPL introduced a technology consulting service, to diagnose advisors’ tech stacks and help them get the most value from them. The firm is also piloting a CRM workflow service in which LPL staff will help advisors set up workflows in a way that makes sense for them.

LPL also last year launched new services related to talent, including payroll solutions, which will help advisors set up payroll, conduct full-service processing and access a dedicated payroll expert. New HR Solutions will help firms create HR policies, resources, handbooks and ongoing guidance.

The firm’s business solutions portfolio is a suite of services that advisors can outsource to LPL experts for a monthly subscription fee, including consulting on business growth and strategy.