Most Ex-Commonwealth Advisors Join Broker-Dealers; Merit Adds Six

Nearly 700 advisors departed Commonwealth after its March 31, 2025 sale to LPL, and the bulk moved to independent broker-dealers rather than registered investment advisers. Recruiting data from Muriel Consulting and AdvizorPro show 36% of those advisors joined RIAs in 2025, with a later update putting the RIA share at about 27% for departures tracked after the initial report.

Alpharetta, Georgia-based Merit Financial Advisors has hired six former Commonwealth teams since the sale was announced. The most recent addition is The Bridgeway Group, a nine-person Pasadena team that manages roughly $900 million in client assets and had spent 13 years at Commonwealth.

Bridgeway founding partner Matthew Dupon noted the team expected significant operational change whether they remained under Commonwealth and moved onto LPL systems or joined another firm. “We knew we were going to have to make a transition one way. We’re going to have to use all new technology. So we figured: Well, let’s look around and get it right the first time.” Dupon cited administrative relief, custody flexibility and growth support as reasons for choosing Merit.

Dupon highlighted custody options as a deciding factor. Merit allows custody at Fidelity or Charles Schwab, which avoids a full repapering to a single custodian under LPL. “We like the option, the ability to use Fidelity or Schwab, depending on what clients prefer,” he observed.

Merit was founded in 1998 and has expanded through dozens of acquisitions to manage more than $30 billion across 55 offices. David Wahlen, Merit’s executive vice president of strategic partners, described the firm’s recruitment offers as centered on equity stakes and long-term alignment rather than large upfront transition checks typical at many broker-dealers. “The offers, I hope, are competitive,” he added.

Independent broker-dealers including Raymond James, Kestra and Cambridge have been prominent destinations for departing Commonwealth advisors. Recruiters report those firms offered higher upfront recruiting incentives and business processes familiar to advisors who had operated under a broker-dealer model.

Smaller hybrid firms and independent players have also hired former Commonwealth teams. Independent Financial Partners recently added two teams that together bring about $400 million in client assets and 11 team members. CEO Chris Hamm pointed to multiple custodian relationships and more frequent revenue payments as operational features his firm offers. “We pay revenue three times a month, and when we receive the fees we credit advisors immediately,” he remarked.

Recruiting consultants recommend advisors weigh long-term valuation and sale options when choosing a new firm. Muriel Consulting founder Shelby Nicholl noted that RIA firms can offer higher practice-sale multiples and access to more buyers. Nicholl also said negative comments by Commonwealth leadership about LPL in the years before the sale influenced some advisors’ choices.

LPL executives have stated a goal of retaining at least 90% of Commonwealth’s assets through integration, which the company expects to complete in the fourth quarter. At acquisition, Commonwealth had about 2,900 advisors and $305 billion in client assets; LPL reported more than 32,000 advisors and about $2.6 trillion in client assets, figures that advisers cited when weighing whether to join LPL or move elsewhere.