Largest U.S. Independent Brokerage in $2.5 Billion Sale to Hellman/TPG

October 27, 2005

Cleary Gottlieb is representing the founder/controlling stockholder of Linsco/Private Ledger, the largest independent brokerage firm in the U.S., in LPL’s sale to long-time Cleary clients Hellman & Friedman and Texas Pacific Group. The sale, expected to close by year-end, is valued at approximately $2.5 billion.

Based in Boston and San Diego, LPL has over 3,000 offices, housing over 6,200 financial advisers. Last year, LPL had $1.1 billion in revenue, with over $100 billion of assets under management.

LPL’s business model is to provide a support environment for its independent financial advisors, including an online order entry system through which the advisors can execute client orders to buy and sell individual securities, mutual funds and annuities. The firm does not offer investment products of its own, but instead makes available a broad range of non-proprietary investment products, as well as a range of independent securities research.