Scott Welch, co-founder and chief investment officer of Fortigent LLC, a well-known alternative investment management firm acquired by independent broker-dealer LPL in 2012, will leave the firm August 31, Financial Advisor magazine has learned. Welch is the latest high-profile executive and the second in its investment management unit to depart LPL Financial in the last month.

Jeffrey Kleintop, stepped down as LPL's chief market strategist last month. Other news reports say he will begin a job next week as Schwab's chief global investment strategist. Earlier this year, Fortigent's president and co-founder, Andrew Putterman, also left the firm to start his own consulting firm.

When LPL was asked for comment on the departures, Burt White, managing director and LPL's chief investment officer, said in an e-mail, “We thank Jeffrey and Scott for being invaluable resources to our clients, and we wish them both well in their future endeavors.”

In a letter to Fortigent's "community of advisors," Welch says the integration of Fortigent and LPL research teams is now complete and the enhanced capabilities and capacity resulting from the integration will allow the firm to provide a greater depth and breath of services to clients. "With that integration complete, however, it is time for me to move on and seek new challenges and adventures," says Welsh, who adds that it was a great pleasure to know them and that he was honored to be their partner and colleague.

Sources say that some people at Fortigent, a leading provider of alternative investments started by Lydian Wealth Management, were unhappy about the consolidation of the research teams and were saddened by Welch's departure. Fortigent specializes in performance reporting, practice management and investment research for financial advisors serving high-net-worth clients, the company Web site says.

When LPL purchased Rockville, Md.-based Fortigent LLC in January 2012, some observers thought the nation's largest independent B-D would use the alternative investment platform as a vehicle to enter the high-net-worth market. At the time, LPL officials indicate they would seek to maintain Fortigent's independence, partly to retain the platform's appeal to non-LPL advisors.

Fortigent reportedly managed about $50 billion for around clients when the transaction was completed. Since Fortigent client said their average client had about $7 million in assets at the time of the acquisition, it implies that the alternative platform had several giant clients.

After the Great Recession, many leading institutional investment consultants recommended that pensions and other large investors overweight long-short equity hedge funds and other alternatives. But the best-performing major asset class since March 2009 has been long-only U.S. equities. Some alternative strategies like managed futures, which performed extremely well during the financial crisis, have disappointed investors since then.

One source said that LPL's capital allocation process works in a fashion similar to other large businesses so that the best-performing divisions receive the largest investments. As advisor interest tilted toward providing clients with a post-crisis mentality with retirement security rather than exotic investments, Fortigent reportedly found itself competing for capital against fast-growing National Retirement Partners, which LPL continues to seek to expand.

Other recent departures at LPL include Derek Bruton, formerly LPL's managing director of independent advisor services, who left LPL and joined Lucia Capital Group as its CEO. Bruton was reportedly forced out, but in an interview he would not confirm the circumstances of his departure.

In June, LPL announced that it was eliminating the chief marketing officer position and Joan Khoury, who has held that job, would leave LPL this month. The company said that it was promoting and expanding the roles of Mimi Bock, who is becoming managing director for client experience and training, and Ryan Parker, who is becoming managing director for investment and planning solutions.

“LPL has an exceptional senior leadership team built on internal bench strength and selective recruitment of top talent, " said Sallie Larsen, managing director and chief human capital officer, in an e-mail today in response to questions about the staff changes. "Part of being an employer of choice is becoming known in our industry for the quality and depth of the talent at our firm. That means, at times, some employees will be targeted by other firms seeking to strengthen their own talent. We understand, too, that from time to time our people will choose other career paths and we always wish them the best.”