LPL Financial has attracted two more advisory teams from Osaic, representing more than 30 advisors and $4 billion in client assets. Lutherville, Md.-based Academy Financial and Berwyn, Pa.-based PFG Advisors were previously with Lincoln Financial’s wealth business, before Osaic acquired it earlier this year.
Academy Financial was founded in 1992 by Harry Horn, a U.S. Military Academy graduate still involved in the firm as a consultant and partner emeritus. Brent Kvech, T. Joseph Barger, Michael Leonard and Michael McFeeley, a former maritime officer and alumnus of the U.S. Merchant Marine Academy, currently lead the firm.
PFG Advisors is led by Tyler McCraw and Steve Morris. Upon joining LPL, the firms will merge and operate under the Academy brand. The teams opted for LPL based on the firm’s operational capabilities and tools for managing client portfolios.
“We felt the stability of LPL—a Fortune 400 company with a large infrastructure, economies of scale and robust technology—would enable us to operate independently and focus solely on taking care of our clients,” Kvech said in a statement.
Last year, Osaic rebranded from Advisor Group and planned to roll its eight broker/dealers under one entity, including American Portfolios, FSC Securities, Infinex Investments, Royal Alliance Associates, SagePoint Financial, Securities America, Triad Advisors and Woodbury Financial Services, within 18 to 24 months. Royal Alliance, SagePoint, Woodbury and FSC have already been integrated, according to the firm.
In May, the firm closed its acquisition of Lincoln Financial’s $115 billion wealth business after striking a deal to buy it for $700 million last December. Lincoln will also be rolled into Osaic,
Amidst these changes, some Osaic and Lincoln teams have opted to leave, and many landed at LPL.
Pilot Financial, an extensive network of 105 advisors with $4.6 billion in managed assets, also opted to move to LPL in May. The North Carolina-based business was founded in 2001 and affiliated with Lincoln until the move to LPL. Last month, Summit Planning Group, a Connecticut-based team managing about $750 million in assets, also moved to LPL from Osaic, which it joined via the Lincoln wealth acquisition.
Ryan Rayburn also moved his $860 million Dallas-based team to LPL from Osaic after the firm acquired Lincoln wealth. He told WealthManagement.com that he was worried about further disruption.
Rayburn also fretted about Osaic’s private equity ownership and wondered if Osaic would slim down services to maximize profits.
In February, LPL added the $520 million Wisconsin-based Equity Design Group, previously affiliated with SagePoint. Co-founder Jason Hohenstein echoed Rayburn’s concerns, saying the move to the Osaic brand added a “significant layer of confusion” for clients.
“We had no idea which direction Osaic is going,” he said.
Previously, CEO Jamie Price had told WealthManagement.com that reports that Osaic’s private equity owner, Reverence Capital Partners, was looking to sell part of its ownership stake were “pure speculation.” An Osaic spokesperson declined to comment on specific departures from the firm, but said Price’s previous comments were still valid.
“Reverence continues to be a great strategic partner and is committed to investing in Osaic’s long-term success,” the spokesperson said.
