Hightower has agreed to accumulate a majority curiosity in NEPC, an institutional consulting agency and outsourced chief funding officer (OCIO). The deal will carry institutional analysis and funding capabilities to Hightower advisors.
With the addition of NEPC, Hightower and its associates will characterize over $1.8 trillion in property below advisement and $258 billion in property below administration.
“As extra personal wealth buyers specific curiosity in allocations to non-public market investments, NEPC’s institutional analysis and funding capabilities will bolster Hightower’s present set of wealth administration options for its advisors and their purchasers,” Hightower mentioned in a press release. “With this transaction, NEPC’s purchasers will proceed to obtain funding advisory and OCIO providers whereas creating a brand new development channel in partnership with Hightower.”
The deal provides Hightower advisors entry to NEPC’s OCIO providers and institutional personal market fund managers.
This additionally creates a brand new development marketplace for NEPC in personal wealth. The corporate will be capable to broaden its funding merchandise to this section and make investments again into the enterprise. The partnership with Hightower additionally boosts its funding analysis capabilities and infrastructure, in addition to its potential to draw and retain high expertise.
“Our relationship with NEPC stemmed from the thrilling and distinctive alternative that each companies can supply the personal wealth market when mixed,” Hightower Holding Chairman and CEO Bob Oros mentioned in a press release. “In partnership with NEPC, Hightower advisor practices can have expanded entry to funding administration options, analysis capabilities and a compelling set of funding alternatives.”
Hightower expects to maintain NEPC’s government crew and funding course of intact. As soon as the deal closes, NEPC Managing Accomplice Mike Manning will be part of Hightower’s board of administrators.
NEPC, initially referred to as New England Pension Consultants, was based in 1986 by Chairman Emeritus Richard Charlton. The agency is employee-owned and has greater than 360 workers.
This follows information final month that Hightower took a stake in Charles D. Hyman & Firm, an RIA in Ponte Vedra Seaside, Fla., with $2.3 billion in shopper property.
Hightower is owned by personal fairness agency Thomas H. Lee Companions; in Might, WealthManagement.com reported the personal fairness agency took Hightower off the market as a result of it didn’t get the value it was searching for from potential patrons, in response to sources near the agency and the funding bankers concerned.
In April, Hightower named Gurinder Ahluwalia, the lead director of the agency’s board of administrators, as president, a newly created place. Ahluwalia is an government accomplice in THL’s monetary know-how and providers vertical.
During the last a number of years, many within the RIA enterprise have made concerted efforts to serve the institutional market. For instance, one of many greatest RIAs within the nation, Mariner Wealth Advisors, acquired two institutional consulting corporations, AndCo Consulting and Fourth Road Efficiency Companions, in early February, including $104 billion in property and 100 workers.
