LPL Financial Holdings Inc. reported that it has retained a mid-80s percentage of assets from its $2.7 billion acquisition of Commonwealth Financial Network, as the firm works toward its goal of keeping 90% of the boutique broker-dealer's nearly $300 billion in assets. CEO Rich Steinmeier stated during a first-quarter earnings call Thursday that the integration is on track, despite competition from rivals like Raymond James Financial and Cambridge Investment Research, which have recruited dozens of Commonwealth teams.
“In terms of asset retention, we are in the mid-80s today, and we continue to track towards our target of 90% retention,” Steinmeier said. He added that the integration is progressing well, allowing LPL to refocus its recruiting efforts on external opportunities after months of concentrating on retaining Commonwealth advisors.
LPL, historically the leading recruiter in the independent broker-dealer space, reported recruited assets of $17 billion for the first quarter of 2025, down 55% from the same period a year earlier. The firm also saw a net loss of 34 advisors compared to the fourth quarter of 2025, bringing its total advisor headcount to 32,144. William Blair analyst Jeff Schmitt noted that the weak organic growth was expected due to the shift in recruiter focus, and that the pipeline is now at a record level, suggesting a rebound in the second half of the year.
Total client assets rose 30% year-over-year to $2.3 trillion, with advisory assets increasing 42% to $1.4 trillion. Advisory assets now represent 59.5% of total client assets, up from 54.5% a year ago. Total organic net new assets reached $21 billion, representing 4% annualized growth.
Steinmeier emphasized that LPL's recruiting army is now targeting external advisors again, leveraging the firm's scale and technology. “Given our strong progress with Commonwealth, we're increasingly focusing our recruiting efforts on external opportunities,” he said. The firm has already made notable hires, including a $2 billion team from PNC Private Bank and a UBS veteran with $250 million in assets.
Competitors have not been idle. Cetera, Osaic, and Ameriprise have recruited a combined $950 million in assets from Commonwealth, LPL, and Thrivent. Meanwhile, Cambridge Investment Research reported $25 million in Q1 recruiting revenue, underscoring the intense competition for advisor talent.
LPL's ability to retain Commonwealth advisors will be critical to justifying the $2.7 billion price tag. With the integration largely complete, the firm's focus on external recruiting could help restore its organic growth trajectory. Analysts expect a pickup in the second half of 2025 as the record pipeline converts to new assets.
