SUBSCRIBE, the leading operating system for alternative investments that digitalizes the investment process for fund managers, institutional investors, wealth managers, law firms, and fund administrators, today announced that is has been selected by LPL Financial Holdings Inc (Nasdaq: LPLA, (“LPL”)) to build a highly customized and fully integrated platform solution to modernizes the firms alternative investments program. LPL is one the nation’s largest independent wealth management firms with over 28,000 financial advisors (including advisors at approximately 1,200 enterprises, and 560 registered investment advisor (“RIA”) firms) that collectively serve over 8.0 million investors nationwide and oversee more than $1.8 trillion in client assets, including Equitable Advisors and Prudential Advisors. Through SUBSCRIBE, LPL is able to centralize their alternative investment products, advisor education, compliance controls, and investment workflows on a single operating system.
“We have been looking to elevate the advisor and client experience to set them up for success when allocating to alternatives,” said Aneri Jambusaria Managing Director, Head of Wealth Management at LPL Financial. “As we explored the available options in the market, we found that SUBSCRIBE’s cutting-edge technology platform delivered a cross-functional suite that was unmatched.”
During LPL Financial Holdings Inc 3Q 2024 Earnings Call, CEO Rich Steinmeier discussed LPL’s strategic decision to significantly expand their alternative investment offering to meet the needs of wirehouse and regional advisors that are more and more choosing to join the firm, when he commented that:
“Inside of alts, over the last year, we’ve made significant progress in building towards a world-class platform. Specifically, this year, we’ve deployed a new alternative investment order entry system which we launched in the second quarter with a pilot set of advisors and have gotten a lot of feedback on. And in fact, we have used that launch in the second quarter to build and enhance what we call AIOE, our Alternative Investment Order Entry system, so that it’s much more intuitive and has better capabilities in support of a broad deployment at the end of the fourth quarter. The feedback that we’ve got from the advisors who went on the pilot has been incredibly positive.”1
Through SUBSCRIBE’s open-architecture platform, LPL Financial Advisors can discover, research, educate, transact, and manage investments across a highly curated menu of products, including private equity, private credit, real estate, hedge funds, 1031 exchanges/DSTs, exchange funds, and feeder funds formed by SUBSCRIBE or other providers.
At the same time, LPL Home Office and Compliance professionals, gain additional confidence in the alternative investments made for clients from the innovative compliance overlays SUBSCRIBE provides that allow for monitoring and supervision. These modules validate advisor registrations and education requirements, account pre-qualification and suitability, sales-kit delivery, and a myriad of additional regulatory and firm specific controls relating to concentration limits and state restrictions for each fund investment, all in real-time and as part of a single flow.
“We were looking for a trusted long-term partner and what attracted us to SUBSCRIBE was the technology leadership and innovation they have demonstrated,” said Kate Winters, Senior Vice President, Investment Product Management & Retirement Partners at LPL Financial. “They have made simple what is otherwise complex and built a compliant process that meets all of our needs and gives us extreme control as we scale our product offerings.”
SUBSCRIBE’s platform seamlessly integrates with any organization’s software ecosystem, including CRMs, leading custodians, fund administrators, law firms, trading, and reporting software providers. The solution provides complete investment lifecycle support for pre-trade, at-trade workflows, and automates post-trade collection investment data for downstream reporting through SUBSCRIBE Extract.
“We are pleased to be the exclusive operating solution for LPL’s alternative investment program,” said Rafay Farooqui, Founder and CEO at SUBSCRIBE. “Our platform’s ability to integrate seamlessly with large complex organizations to deliver a single super-platform that can centralize and operate any fund, any investor, anywhere in the world positions LPL financial advisors, clients, and fund manager partners for success.”
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