LPL Financial Holdings Inc. is making significant moves to expand its alternative investment platform, a strategy that could increase revenue while providing financial advisors with more products to offer wealthy clients. According to InvestmentNews, LPL's recent efforts align with broader trends among major custodians and wirehouses.

Alternative investments, such as private equity funds, nontraded business development companies, and nontraded real estate investment trusts, often come with higher fees and greater risks. The products typically are designed for high-net-worth investors who can better withstand market volatility.

LPL specifically has targeted wirehouse advisors, who generate over $1 million annually in fees and commissions, as part of its expansion plan. InvestmentNews reports that the firm has more than doubled its alternative investment selling agreements in the past year, exceeding 80 by the end of 2024. CEO Rich Steinmeier stated during a recent earnings call that LPL aims to further grow its inventory in 2025, positioning itself as a top-tier provider in the alternative investment space.

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