LPL Takes 20% Stake in Independent Advisor Alliance

LPL Financial has taken a 20% ownership stake in Independent Advisor Alliance, marking LPL’s fourth such minority investment.

Founded in 2013 in Charlotte, North Carolina, IAA bills itself as a hybrid firm “strategically focused on empowering financial advisors to succeed as independent business owners.” The firm has about $17 billion in assets under advisement across some 226 partnering firms.

As Robert Russo, IAA’s founder and CEO, told ThinkAdvisor this week, LPL’s investment will support IAA as it works to advance its services and tools and create an “even more supportive ecosystem” for its network of financial advisors.

This includes IAA’s partnership program, Russo explained, where it invests capital in partner firms to ensure that they have the resources needed for sustainable growth and success.

Russo emphasized that IAA will maintain control and ownership of its management and operations, ensuring continuity and stability for its employees and its existing partners and advisors. He said IAA considered several options before selecting LPL, with a key criterion being an investor who shares a longstanding commitment to fostering innovation and enhancing services for financial advisors.