Jump-start­ing HNW Growth

LPL is try­ing to show ad­vi­sors how they can use its re­sources to “get more at-bats” with prospec­tive clients.

Financial Planning - - CONTENT - By Charles Paik­ert

LPL is show­ing ad­vi­sors how they can use its re­sources to “get more at-bats” with prospec­tive clients.

LPL’S PITCH TO AD­VI­SORS TAR­GET­ING THE HNW mar­ket ap­pears to be work­ing: As­sets from clients with more than $5 mil­lion to in­vest have in­creased 44% in three years.

“We’re de­moc­ra­tiz­ing high-net-worth,” Gary Car­rai, se­nior vice pres­i­dent of HNW so­lu­tions at LPL, said in an in­ter­view at the firm’s an­nual Fo­cus con­fer­ence in Bos­ton. “We’re show­ing ad­vi­sors that they can lever­age our team and get more at-bats with HNW prospects.”

Car­rai con­cedes that LPL “his­tor­i­cally hasn’t been thought of as a high-net-worth des­ti­na­tion.” But to­day, he ar­gues, that per­cep­tion “is more im­age than re­al­ity.”

LPL’S pur­suit of the HNW mar­ket be­gan in earnest five years ago, when the com­pany ac­quired For­ti­gent, a re­port­ing, due dili­gence and in­vest­ment man­ager se­lec­tion ven­dor with a glit­ter­ing client ros­ter of in­de­pen­dent ad­vi­sors.

For­ti­gent is now fully in­te­grated with LPL, and Car­rai, who also serves as pres­i­dent of For­ti­gent, over­sees the IBD’S high-net-worth ini­tia­tive.


High-net-worth as­sets at LPL have jumped from $27.5 bil­lion in 2015 to more than $38 bil­lion so far this year.

A crit­i­cal el­e­ment in achiev­ing that gain has been LPL’S 78-mem­ber Ad­vanced Plan­ning Ex­change team, or APEX. “It’s a way for ad­vi­sors with HNW clients to lever­age LPL’S ex­per­tise,” Car­rai says. “They’re sub­spe­cial­ists with a deep plan­ning back­ground who are on call to sup­port ad­vi­sors when clients need guid­ance in ar­eas like es­tate plan­ning, phi­lan­thropy and sin­gle-stock con­cen­tra­tion.”

LPL has also been build­ing up its two-year-old Pri­vate Client brand, Car­rai adds. “We want the ad­vi­sor to take the lead in the re­la­tion­ship with the HNW client but also know that LPL is part of the team and that they have a solid brand be­hind them,” Car­rai says.

Car­rai sees plenty of room for LPL to in­crease its share of the HNW mar­ket.

“In­de­pen­dents are win­ning more of this mar­ket be­cause it’s be­com­ing more Main Street and less Wall Street as so­lu­tions be­come more ac­ces­si­ble,” he says. “It’s also a very com­plex and frag­mented mar­ket, and we can pro­vide the con­sol­i­dated and ag­gre­gated per­for­mance re­port­ing, tech­nol­ogy and in­vest­ment se­lec­tion that high-net-worth clients need.”

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