LPL Financial, the nation’s largest independent broker-dealer, has signed an agreement to acquire the assets of E.K. Riley Investments, LLC, a Seattle-based RIA and broker-dealer, the companies announced in a press release.
A spokesperson for LPL, a publicly traded company, said that the announcement was made yesterday, after close of the market.
E.K. Riley Investments provides independent financial advice to individuals, affluent families and business owners. The firm has approximately 35 financial advisors and $2 billion of client assets under management.
Under the terms of the agreement, the transaction is structured as an asset purchase and provides for both a payment at closing and potential contingent payments. LPL estimates a return on the investment at approximately six times E.K. Riley’s market value.
Financial details of the transaction were not disclosed.
According to the E.K. Riley Investments website, Edward Riley, chairman and CEO of E.K. Riley Investments, founded his namesake firm in 2002 with the vision of building an employee-owned securities brokerage that would become the premier independent brokerage firm in the Pacific Northwest.
In the press release, Riley cited similarities between his firm and LPL that led him to change his mind about keeping his company an independent business after two decades operating as one.
“We believe that LPL’s culture, technology and other capabilities provide the ideal environment for our financial advisors to offer outstanding service and advice to their clients,” he said in the news release.
Rich Steinmeier, LPL Financial’s managing director and divisional president of business development, said in the news release that LPL was committed to E.K. Riley’s continued success.
“We [offer] the benefits of LPL’s scale as well as access to integrated technology, an innovative wealth management platform and resources to help them run efficient and productive businesses,” he said. “We look forward to a long-lasting partnership.”
The transaction is expected to close in the second half of 2020.
LPL Financial, a retail investment advisory firm and independent broker-dealer, is headquartered in Fort Mill, S.C.; San Diego; and Boston.