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LPL Financial Announces Common Stock Distributions By Original Private Equity Sponsors

Stocks in this article: LPLA

BOSTON, Aug. 14, 2013 (GLOBE NEWSWIRE) -- LPL Financial LLC, the nation's largest independent broker-dealer,* a leading RIA custodian, and a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq:LPLA) (the "Company" or "LPL Financial"), today announced that Hellman & Friedman, one of the Company's original private equity sponsors, has elected to distribute the remainder of its overall holdings, 12.6 million shares of the Company's common stock, to its partners.

In addition, LPL Financial's other original private equity sponsor, TPG, will distribute a portion of its overall holdings in the Company to its partners, following which TPG and its affiliates will have approximately a 17% stake in the Company. Both firms have been investors in LPL Financial since 2005, and had a combined ownership of 61% of the Company's outstanding shares at the time of its IPO in 2010.

"The ongoing reduction of Hellman & Friedman and TPG's respective ownership stakes has been a natural and expected part of LPL Financial's maturation as a publicly traded corporation. Both firms have been exceptional partners since their original investments in our Company," said LPL Financial Chairman and CEO Mark Casady. "These latest distributions underscore how far LPL Financial has come since their initial investment. We are well positioned going forward due to the strength of our business model and industry leadership position."

Hellman & Friedman is distributing 12.6 million shares to its partners, while TPG will distribute 4.0 million Company shares. The total distribution of 16.6 million shares, which is expected to occur on August 15, 2013, represents approximately 16% of total shares outstanding. Hellman & Friedman and TPG have previously completed similar distributions, most recently distributing an aggregate of 12.5 million shares to their respective partners in May 2013.

As a result of the distribution, Hellman & Friedman is relinquishing its two seats on the LPL Financial board of directors, consistent with the terms of the shareholders' agreement among the parties. The two LPL Financial board members affiliated with Hellman & Friedman - Allen Thorpe and Jeffrey Goldstein - are resigning from the board, effective upon completion of the distribution. 

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