LPL Affiliate Gladstone Hires $2-Billion Morgan Stanley Team
Gladstone Wealth Management, an independent broker and investment advisory firm affiliated with LPL Financial, has lured a $2-billion-asset team from Morgan Stanley Wealth Management.
John W. Gallagher and Mark T. Levin moved Friday from separate Morgan Stanley branches in Philadelphia to a new Gladstone branch in Marlton, N.J. Their combined business is the largest of any team that Gladstone has recruited in its seven-year history, according to Rick Frick, its chief executive.
“I had a great relationship with them,” he said of the 12-year connection with the pair, who were each executive directors at the wirehouse. “Instead of launching their own firm, they trusted me.”
Gallagher and Levin, who moved with four support staff, said in a prepared statement that they hope to expand more quickly as independents by hiring advisors and getting client referrals through a Gladstone-cultivated network of accountants and lawyers.
They opted for Gladstone’s “partnership” model, which gives them about an 80% payout level that is lower than the top split they could have negotiated by affiliating directly with LPL, in return for additional administrative and operational support and an opportunity to sell their equity if Gladstone is acquired, Frick said. They also will receive some asset-based transition assistance from LPL, and are using LPL’s corporate RIA rather than Gladstone’s directly registered firm for advisory accounts.
“The open architecture of LPL’s platform, along with the ability to choose our own partners, allows us to extend our team of experienced professionals to provide clients with a total package for all their financial needs,” said Levin, who has worked at Morgan Stanley and Dean Witter since 1996.
Gallagher began his career in 1980 at Philadelphia regional Janney Montgomery Scott, but has worked at Legg Mason and Smith Barney, which were combined and later folded into Morgan Stanley, since 1983.
Levin, who had the internal Morgan Stanley designation of “sports and entertainment director” to help him pitch celebrities and their support communities, had been based in the Philadelphia suburb of Bryn Mawr, and had spent his 24-year career at Morgan Stanley.
Gallagher, a 40-year industry veteran, had been with Morgan Stanley and its Smith Barney and Legg Mason predecessors since 1983 after spending three rookie years at Janney Montgomery Scott, according to BrokerCheck.
Gladstone merged earlier this year with Financial Resources Group, a larger LPL-affiliated hybrid RIA that primarily offers wealth management services through credit unions and small banks. The combined firm’s close to 700 brokers work with about $24 billion of client assets. Gladstone, which has now hired 29 advisors this year, oversees around $5 billion of the assets.