PRINT THIS PAGE Hellman & Friedman and TPG to acquire majority stake in LPL Financial Services28/10/2005. Source: AltAssets. 
 US private equity firms Hellman & Friedman and Texas Pacific Group have agreed to acquire a majority equity interest in Boston and San Diego-headquartered brokerage firm Linsco/Private Ledger (LPL Financial Services). Following the transaction, LPL's founders and employees will retain approximately 40 per cent of the company's equity. The agreement values the company at $2.5bn.
LPL has 6,200 financial advisors and 3,000 branch offices. The company generated revenues of $1.1bn and had over $100bn in assets under management for its 2004 fiscal year.
TPG partner Richard Schifter said, 'We view LPL and its entire organisation of financial advisors and employees as an excellent investment in an industry with bright prospects. The management team has built a highly successful business focused on supporting its advisors in developing strong and profitable relationships with their clients. The industry is evolving rapidly, and LPL and its financial advisors are well-positioned to capitalise on emerging opportunities.'
Jeffrey Goldstein, managing director at Hellman & Friedman, added, 'We are proud to partner with a firm that has a strong culture dedicated to serving its financial advisors with access to high quality products, effective support services and an outstanding technology platform. Independent, unaligned financial advice is critical to all investors and the demand for this advice will continue to grow rapidly as retirement planning needs and investable assets increase significantly in coming years.'
Hellman & Friedman focuses on industry sectors including financial services, media, professional services, energy and information services.
TPG also invests across a range of industries, including financial services, technology, branded consumer franchises, media and communications, retail, healthcare, airlines and industrials.
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