Executives at LPL Financial (LPLA), which shared the news of its $9 million restructuring of the Fortigent wealth management consulting group on Wednesday, insist that its high-net-worth efforts are on track.
LPL bought Fortigent, which provides outsourced wealth management solutions, in April 2012. It is now moving the unit from Rockville, Maryland, to its headquarters in Charlotte, North Carolina, and expects to spend some $4.5 million on severance pay due to the Fortigent restructuring. About 10 employees were immediately terminated, according to a spokesperson.
"Our goal is to be a premier provider of high-net-worth solutions in the industry – and we've been moving up the chart quite a bit," said Matthew Enyedi, executive vice president of RIA and high-net-worth solutions. "We are fired up about the opportunity [in this segment.] Advisors need help to growth this business, and investors need their help, as well.
Since its acquisition by LPL, Fortigent's assets have grown from roughly $64.7 billion to $86.3 billion. Still, there have been a number of executive departures: In 2014, then-President & CEO Jamie McIntyre and former-Chief Investment Officer Scott Welch left the business.
According to Gary Carrai, who is leading the renewed high-net-worth effort in 2015, advisors across LPL gained full access to Fortigent through a "soft launch" in the fourth quarter. "Now, they can access Fortigent for their investors and integrate [these services] in order to expand their business-level potential," he said.
LPL says it intends to keep the Fortigent brand while expanding access to its high-net-worth platform for advisors, LPL Private Client.
