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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • The Private Trust Company, N.A.
  • LPL Financial Services
  • Trust Banks
  • November 27, 2002
  • $230 Million

Seller Details

The Private Trust Company, N.A. is a federally chartered national bank focused on providing family wealth advisory services and fiduciary management. As of November 30, 2002, the company managed approximately $230 million in assets for over 40 families. For these clients and 32 other families, the company is named as executor or trustee in estate plans representing an additional $290 million in assets for future administration. Based in Cleveland, PTC has established itself as the leading independent trust company in Northeast Ohio.

Buyer Details

LPL Financial Services is one of the largest organizations serving independent financial advisers and, since 1996, has been the largest independent broker-dealer by revenue in the United States. Formed in 1989, through the merger of two small but successful brokerage firms, Linsco (est. in 1968) and Private Ledger (est. in 1973), LPL has expanded its number of financial representatives from a few hundred to over 4,400 by offering a full platform of mutual funds, annuities, managed account programs and planning tools. Headquartered in Boston and San Diego, the company has over 800 staff assisting representatives with back-office support based in 2,100 branch offices nationwide. LPL remains focused on offering its representatives and clients an unbiased menu of the best products and services to help them achieve their financial goals.

Transaction Summary

This strategic acquisition represents an opportunity for LPL to better manage and serve its high-net-worth client relationships. LPL plans to train its top tier financial planners/brokers in the appropriate use of high quality trust services as a component of comprehensive financial planning. LPL will then distribute these services (provided by PTC) through its network of representatives. Additionally, clients with significant assets (currently assumed to be $5 million or more) will receive individually tailored estate planning and financial guidance from senior PTC representatives. LPL sees the offering of trust capabilities as an enormous opportunity to provide improved services to its representatives, retain family relationships once the original client is deceased, and further drive the growth of their institution.

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