LPL Financial LLC has agreed to acquire Boenning & Scattergood's private client group business, the companies announced.
Under terms of the agreement, signed on July 7, Boenning & Scattergood, which has about $5 billion in brokerage and advisory client assets, will join LPL’s employee advisor model and retaining its brand, according to Harold Scattergood Jr., chairman and CEO of Boenning & Scattergood.
The Philadelphia Inquirer reported today that, at the same time, a team of 20 investment banking professionals from Boenning & Scattergood are heading instead to Janney Montgomery Scott, an arm of Montgomery County-based Penn Mutual Life Insurance Co. in Philadelphia. The employees headed to Janney includes managing directors who head key functions such as insurance deals and investment research, the newspaper reported.
“Our family business has a 108-year history of helping our clients build and secure their financial legacies, and LPL is the right partner for us to carry that legacy and our business forward,” he said in a prepared statement. “Importantly, LPL took the time to understand our business, our culture and our goals. LPL’s commitment to investing in our superior wealth management platform will help us to further our capabilities to enrich and grow our support for clients. We are proud to continue building Boenning & Scattergood in a relevant and sustainable way, as we retain our culture and connection to our clients and community.”
Currently staffed by 40 financial advisors, Boenning & Scattergood was founded in 1914, making it one of the oldest independent securities, asset management, and investment banking firms in the nation, according to its website. The company describes itself as a boutique practice that provides retail investors, municpal clients and institutions with a full complement of financial services, including retail brokerage, investment advisory, equity research, equity and fixed income sales and trading, investment banking, public finance and option strategies.
According to the news release, the transaction marks an important expansion of its employee advisor affiliation model, which began in 2019 with the acquisition of Allen & Company.
“The firm has a long history of making a positive difference in the lives of their clients, employees and the communities they serve. As their partner, we can provide an operational model that allows Boenning & Scattergood to focus on client experience and firm growth," Rich Steinmeier, LPL Financial managing director and divisional president for business development, said in the news release.
The transaction is anticipated to close in early 2023, subject to receipt of regulatory approval and other customary closing conditions, the release said. Under the deal, LPL will take on Boenning & Scattergood advisors and certain staff as employees and maintain Boenning & Scattergood operations and brand. Boenning & Scattergood client assets will be put on LPL’s custodial platform.
Financial details of the transaction were not available. However, LPL said it expects to earn a 20% cost of capital return on its investment.
Headquartered in Fort Mill, S.C., San Diego and Boston, LPL Financial LLC supports over 20,000 financial advisors, about 1,000 institution-based investment programs, and about 500 RIA firms nationwide.