LPL Financial on Monday announced it is acquiring Commonwealth Financial Network, the largest independently owned wealth management firm in the U.S., for $2.7 billion in cash.
Under the transaction, LPL will acquire 100% of the equity of the holding company at Commonwealth. LPL says it will finance the transaction through a combination of corporate cash, debt and equity, “resulting in credit agreement leverage of roughly 2.25x following the close of the transaction, with a near-term path to reduce leverage to the midpoint of its stated range of 1.5-2.5x.”
With its headquarters in Waltham, MA, Commonwealth provides business solutions and services for 2,900 financial advisors and manages $285 billion in brokerage and advisory assets.
“We are incredibly proud of the culture we’ve nurtured that leverages all opportunities for our Advisors to thrive,” said Joseph Deitch, Commonwealth founder, who will assume an advisory role to LPL’s Board of Directors as part of the agreement. “To continue supporting this mission, we are confident that LPL’s shared commitment to Advisor centricity, advocacy for Advisor independence, highly experienced team and value-added offerings will serve our Advisors extraordinarily well for the long-term.”
As per the acquisition, Commonwealth Chief Executive Officer Wayne Bloom will join LPL’s Management Committee and will report to Rich Steinmeier, LPL Financial chief executive officer. Bloom will also work with the LPL leadership team on its launch of LPL’s Office of Advisor Advocacy, aimed at improving service experiences for LPL advisors.
“This impressive partnership accelerates our joint competitive advantage, bringing unparalleled value to our Advisors and our employees,” said Bloom. “Commonwealth will retain its brand as part of LPL, and Commonwealth Advisors will continue to benefit from their relationships with our team members, all while taking full advantage of LPL’s scale and platform that fuels its industry-leading offerings.”
“Commonwealth is respected throughout our industry as a standard-bearer for service excellence, and their commitment to the success of their Advisors is embedded in all aspects of their business,” added Rich Steinmeier, LPL Financial chief executive officer. “A complement to LPL’s client-centric culture, Commonwealth’s service philosophy enhances the value we’ll collectively bring to all Advisors across the LPL network. In addition, LPL’s advanced technology, intuitive business solutions and breadth of wealth management offerings unlock boundless potential for Commonwealth Advisors and the clients they serve.”
The transaction is expected to close in the second half of 2025, and the conversion to the LPL platform is expected to be completed in mid-2026, subject to the receipt of regulatory approvals and other conditions.
Following the closing, LPL said it will evaluate opportunities to bring the Commonwealth advisor experience into the broader LPL ecosystem, including the review of key capabilities at Commonwealth that have been developed in partnership with Advisor360°.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
