LPL Financial Holdings Inc.
LPL Financial Holdings Inc. (Form: SC 13D/A, Received: 11/24/2015 16:09:43)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 1)*

 

 

LPL FINANCIAL HOLDINGS INC.

(Name of Issuer)

Common Stock, par value $0.001 per share

(Title of Class of Securities)

50212V100

(CUSIP Number)

Richard T. McGuire III

Marcato Capital Management LP

Four Embarcadero Center

Suite 2100

San Francisco, CA 94111

(415) 796-6350

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

COPIES TO:

Jeffrey L. Kochian, Esq.

Akin Gump Strauss Hauer & Feld LLP

One Bryant Park

New York, NY 10036

(212) 872-1000

November 20, 2015

(Date of Event which Requires Filing of this Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box   ¨ .

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule §240.13d-7 for other parties to whom copies are to be sent.

 

 

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 


CUSIP No. 50212V100  

 

  1   

Names of Reporting Persons

 

MARCATO CAPITAL MANAGEMENT LP

  2  

Check the Appropriate Box If a Member of a Group (See Instructions)

a.   ¨         b.   x

 

  3  

SEC Use Only

 

  4  

Source of Funds (See Instructions)

 

AF

  5  

Check Box If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)   ¨

 

  6  

Citizenship or Place of Organization

 

DELAWARE

Number of

Shares

Beneficially

Owned By

Each

Reporting

Person

With

 

     7    

Sole Voting Power

 

0

     8   

Shared Voting Power

 

6,046,825

     9   

Sole Dispositive Power

 

0

   10   

Shared Dispositive Power

 

6,046,825

11  

Aggregate Amount Beneficially Owned by Each Reporting Person

 

6,046,825

12  

Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

13  

Percent of Class Represented By Amount in Row (11)

 

6.4%

14  

Type of Reporting Person (See Instructions)

 

IA

 


CUSIP No. 50212V100  

 

  1   

Names of Reporting Persons

 

RICHARD T. MCGUIRE III

  2  

Check the Appropriate Box If a Member of a Group (See Instructions)

a.   ¨         b.   x

 

  3  

SEC Use Only

 

  4  

Source of Funds (See Instructions)

 

AF

  5  

Check Box If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)   ¨

 

  6  

Citizenship or Place of Organization

 

UNITED STATES OF AMERICA

Number of

Shares

Beneficially

Owned By

Each

Reporting

Person

With

 

     7    

Sole Voting Power

 

0

     8   

Shared Voting Power

 

6,046,825

     9   

Sole Dispositive Power

 

0

   10   

Shared Dispositive Power

 

6,046,825

11  

Aggregate Amount Beneficially Owned by Each Reporting Person

 

6,046,825

12  

Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

13  

Percent of Class Represented By Amount in Row (11)

 

6.4%

14  

Type of Reporting Person (See Instructions)

 

IN

 


CUSIP No. 50212V100  

 

  1   

Names of Reporting Persons

 

MARCATO, L.P.

  2  

Check the Appropriate Box If a Member of a Group (See Instructions)

a.   ¨         b.   x

 

  3  

SEC Use Only

 

  4  

Source of Funds (See Instructions)

 

WC

  5  

Check Box If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)   ¨

 

  6  

Citizenship or Place of Organization

 

DELAWARE

Number of

Shares

Beneficially

Owned By

Each

Reporting

Person

With

 

     7    

Sole Voting Power

 

0

     8   

Shared Voting Power

 

1,502,182

     9   

Sole Dispositive Power

 

0

   10   

Shared Dispositive Power

 

1,502,182

11  

Aggregate Amount Beneficially Owned by Each Reporting Person

 

1,502,182

12  

Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

13  

Percent of Class Represented By Amount in Row (11)

 

1.6%

14  

Type of Reporting Person (See Instructions)

 

PN

 


CUSIP No. 50212V100  

 

  1   

Names of Reporting Persons

 

MARCATO II, L.P.

  2  

Check the Appropriate Box If a Member of a Group (See Instructions)

a.   ¨         b.   x

 

  3  

SEC Use Only

 

  4  

Source of Funds (See Instructions)

 

WC

  5  

Check Box If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)   ¨

 

  6  

Citizenship or Place of Organization

 

DELAWARE

Number of

Shares

Beneficially

Owned By

Each

Reporting

Person

With

 

     7    

Sole Voting Power

 

0

     8   

Shared Voting Power

 

108,051

     9   

Sole Dispositive Power

 

0

   10   

Shared Dispositive Power

 

108,051

11  

Aggregate Amount Beneficially Owned by Each Reporting Person

 

108,051

12  

Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

13  

Percent of Class Represented By Amount in Row (11)

 

0.1%

14  

Type of Reporting Person (See Instructions)

 

PN

 


CUSIP No. 50212V100  

 

  1   

Names of Reporting Persons

 

MARCATO INTERNATIONAL MASTER FUND, LTD.

  2  

Check the Appropriate Box If a Member of a Group (See Instructions)

a.   ¨         b.   x

 

  3  

SEC Use Only

 

  4  

Source of Funds (See Instructions)

 

WC

  5  

Check Box If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)   ¨

 

  6  

Citizenship or Place of Organization

 

CAYMAN ISLANDS

Number of

Shares

Beneficially

Owned By

Each

Reporting

Person

With

 

     7    

Sole Voting Power

 

0

     8   

Shared Voting Power

 

4,436,592

     9   

Sole Dispositive Power

 

0

   10   

Shared Dispositive Power

 

4,436,592

11  

Aggregate Amount Beneficially Owned by Each Reporting Person

 

4,436,592

12  

Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

13  

Percent of Class Represented By Amount in Row (11)

 

4.7%

14  

Type of Reporting Person (See Instructions)

 

OO

 


CUSIP No. 50212V100

SCHEDULE 13D

This Amendment No. 1 supplements the information set forth in the Schedule 13D filed by the Reporting Persons with the United States Securities and Exchange Commission (the “SEC”) on September 22, 2015 (the “Schedule 13D”), relating to Common Stock, par value $0.001 per share (the “Shares”), of LPL Financial Holdings Inc., a Delaware corporation (the “Issuer”). All capitalized terms contained herein but not otherwise defined shall have the meanings ascribed to such terms in the Schedule 13D.

The information set forth in response to each separate Item below shall be deemed to be a response to all Items where such information is relevant. The Schedule 13D is hereby supplementally amended as follows:

 

Item 3. Source and Amount of Funds or Other Consideration.

The responses to Items 4, 5 and 6 of this Schedule 13D are incorporated herein by reference.

The net investment costs (including commissions, if any) of the Shares and call options on Shares referenced in Items 5 and 6 directly owned by the Funds is approximately $279,532,337. The Shares and call options on Shares were purchased with the working capital of the Funds.

 

Item 5. Interest in Securities of the Issuer.

The responses to Items 3, 4 and 6 of this Schedule 13D are incorporated herein by reference.

(a) - (e) As of the date hereof, (i) Marcato and Mr. McGuire may be deemed to be the beneficial owners of 6,046,825 Shares (the “Marcato Shares”) constituting 6.4% of the Shares, (ii) Marcato, L.P. may be deemed to be the beneficial owner of 1,502,182 Shares, constituting 1.6% of the Shares, (iii) Marcato II, L.P. may be deemed to be the beneficial owner of 108,051 Shares, constituting 0.1% of the Shares and (iv) Marcato International Master Fund, Ltd. may be deemed to be the beneficial owner of 4,436,592 Shares, constituting 4.7% of the Shares, each based upon a total of 94,994,871 Shares outstanding as of October 26, 2015 (based on the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on October 29, 2015).

Marcato, L.P. may be deemed to have the shared power to vote or direct the vote of (and the shared power to dispose or direct the disposition of) 1,502,182 Shares. Marcato II, L.P. may be deemed to have the shared power to vote or direct the vote of (and the shared power to dispose or direct the disposition of) 108,051 Shares. Marcato International Master Fund, Ltd. may be deemed to have the shared power to vote or direct vote of (and the shared power to dispose or direct the disposition of) 4,436,592 Shares. Marcato, as the investment manager of Marcato, L.P., Marcato II, L.P. and Marcato International Master Fund, Ltd., may be deemed to have the shared power to vote or direct the vote of (and the shared power to dispose or direct the disposition of) the Marcato Shares. By virtue of Mr. McGuire’s position as managing partner of Marcato, Mr. McGuire may be deemed to have the shared power to vote or direct the vote of (and the shared power to dispose or direct the disposition of) the Marcato Shares and, therefore, Mr. McGuire may be deemed to be the beneficial owner of the Marcato Shares.

The transactions by the Reporting Persons in the securities of the Issuer during the past sixty days are set forth in Exhibit 2 .

The limited partners of (or investors in) each of Marcato, L.P., Marcato II, L.P., and Marcato International Master Fund, Ltd., or their respective subsidiaries or affiliated entities, for which Marcato or its affiliates acts as general partner and/or investment manager have the right to participate in the receipt of dividends from, or proceeds from the sale of, the Shares held for the accounts of their respective funds in accordance with their respective limited partnership interests (or investment percentages) in their respective funds.

 

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

The responses to Items 3, 4 and 5 of this Schedule 13D are incorporated herein by reference.


As reported in Exhibit 2 , the Reporting Persons exercised European-style call options described in the previously filed Schedule 13D that were exercisable on November 20, 2015, and thereby acquired 3,584,804 Shares in the aggregate. In addition, as reported on Exhibit 2 , the Reporting Persons exercised American-style call options described in the previously filed Schedule 13D that were exercisable through July 15, 2016, and thereby acquired 1,912,021 Shares in the aggregate.

Except for the arrangements described herein or in the previously filed Schedule 13D, to the best knowledge of the Reporting Persons, there are no other contracts, arrangements, understandings or relationships (legal or otherwise) among the persons named in Item 2 and between such persons and any other person with respect to any securities of the Issuer, including but not limited to, transfer or voting of any of the securities, finder’s fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, division of profits or loss, or the giving or withholding of proxies.

 

Item 7. Material to be Filed as Exhibits.

Exhibit 2 - Transactions in the Shares effected in the past 60 days.


SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

Date: November 24, 2015     MARCATO CAPITAL MANAGEMENT LP
    By:   Marcato Holdings LLC
    By:  

/s/ Richard T. McGuire III

      Richard T. McGuire III
      Authorized Person
Date: November 24, 2015     RICHARD T. MCGUIRE III
    By:  

/s/ Richard T. McGuire III

Date: November 24, 2015     MARCATO, L.P.
    By:   MCM General Partner LLC, its General Partner
    By:  

/s/ Richard T. McGuire III

      Richard T. McGuire III
      Authorized Person
Date: November 24, 2015     MARCATO II, L.P.
    By:   MCM General Partner LLC, its General Partner
    By:  

/s/ Richard T. McGuire III

      Richard T. McGuire III
      Authorized Person
Date: November 24, 2015     MARCATO INTERNATIONAL MASTER FUND, LTD.
    By:  

/s/ Richard T. McGuire III

      Richard T. McGuire III
      Director

Exhibit 2

TRANSACTIONS

The following table sets forth all transactions with respect to Shares effected in the last sixty days by the Reporting Persons or on behalf of the Reporting Persons in respect of the Shares, inclusive of any transactions effected through 4:00 p.m., New York City time, on November 23, 2015. Except as otherwise noted below, all such transactions were purchases or sales of Shares effected in the open market, and the table includes commissions paid in per share prices.

 

Fund    Trade Date      Buy/Sell (1)   Shares     Unit Cost      Security

Marcato II, L.P.

     10/1/2015       Buy*     6,687        39.77       Common Stock

Marcato, L.P.

     10/1/2015       Buy*     8,325        39.77       Common Stock

Marcato International Master Fund, Ltd.

     10/1/2015       Sell*     (15,012     39.77       Common Stock

Marcato II, L.P.

     11/20/2015       (2)     29,050        20.00       Common Stock

Marcato II, L.P.

     11/20/2015       (2)     63,189        20.00       Common Stock

Marcato, L.P.

     11/20/2015       (2)     459,671        20.00       Common Stock

Marcato, L.P.

     11/20/2015       (2)     900,612        20.00       Common Stock

Marcato International Master Fund, Ltd.

     11/20/2015       (2)     1,423,300        20.00       Common Stock

Marcato International Master Fund, Ltd.

     11/20/2015       (2)     2,621,003        20.00       Common Stock

 

(1) All transactions noted by an * are rebalancing transactions.
(2) Represents the exercise of certain call options and corresponding acquisition of underlying common stock.