Ex-Merrill reps go indie with LPL, woo other wirehouse advisers
A group of advisers in Houston who recently left Merrill Lynch to join LPL Financial are now looking to lure more advisers from the wirehouses to their newly formed independent firm.
A group of advisers in Houston who recently left Merrill Lynch to join LPL Financial are now looking to lure more advisers from the wirehouses to their newly formed independent firm.
The group, Old Course Investment Partners LLC, which consists of nine reps and advisers, resigned from Merrill Lynch & Co. Inc. of New York in April to join LPL of Boston.
Now that they’re fully operational, officials at the firm see an opportunity to bring more wirehouse reps to their downtown Houston office, and they plan to open two more offices in nearby suburbs.
“We’re out recruiting,” said Blaine Douglas, one of the five managing partners with Old Course.
Mr. Douglas said that his firm’s “successful transition shows advisers at wirehouses that we did this and are ecstatic. We’ve had a phenomenal response from clients.”
Old Course now is managing more than $150 million in assets from new clients and clients from Merrill Lynch, Mr. Douglas said. At Merrill, the Old Course advisers managed around $200 million in client money.
“You won’t build your wealth back on day one,” Mr. Douglas said. “But, you’re building a better business for your family and your clients.”
Mr. Douglas acknowledged that independent firms are competing with the big firms for brokers with wirehouse resumes. Some brokers will move from one wirehouse to another strictly for a transition bonus.
Last year’s market collapse has destroyed many brokers’ deferred compensation, which was paid in company stock.
At the end of last year, Merrill was bought by Bank of America Corp. of Charlotte, N.C.
Since then, there have been major changes in management of the firm’s 15,000 advisers.
This week, Bank of America chief Ken Lewis tapped former Citigroup Inc. executive Sallie Krawcheck to be head of its global wealth and investment management group. Citigroup is based in New York.
“You won’t build your wealth back on day one,” Mr. Douglas said. “But, you’re building a better business for your family and your clients.”
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