Aug 2 (Reuters) - LPL Financial, the largest U.S. independent brokerage, on Thursday said it struck a deal with Advantage Financial Group that will bring 63 investment advisers managing $2 billion in assets onto LPL's broker-dealer and custody platform.
Advantage of Cedar Rapids, Iowa, is a partnership owned by its advisers, who are located in the U.S. Midwest, Great Lakes and Southeast regions. Advantage Financial's advisers, who combined generated $11.2 million of revenue in the past year, will transfer their registrations to LPL from Jackson Financial's National Planning Corp unit.
The deal represents a small revenue boost for LPL, which provides brokerage, clearing and other professional services to 13,185 self-employed brokers and advisers. In the second quarter, Boston-based LPL generated $908 million of revenue from brokers overseeing $353 billion.
Advantage was formed by Joe Russo in 2001 as a C corporation with some equity ownership among its advisers. As part of the LPL deal, Advantage converted to a partnership structure akin to a law or accounting firm, but advisers will remain owners of their practices.
Russo also serves as chairman of a lobbying group for independent brokers, the Financial Services Institute.