Hightower has agreed to amass a majority curiosity in NEPC, an institutional consulting agency and outsourced chief funding officer (OCIO). The deal will deliver institutional analysis and funding capabilities to Hightower advisors.
With the addition of NEPC, Hightower and its associates will symbolize over $1.8 trillion in property beneath advisement and $258 billion in property beneath administration.
“As extra non-public 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 progress channel in partnership with Hightower.”
The deal provides Hightower advisors entry to NEPC’s OCIO providers and institutional non-public market fund managers.
This additionally creates a brand new progress marketplace for NEPC in non-public wealth. The corporate will have the ability to develop its funding merchandise to this phase and make investments again into the enterprise. The partnership with Hightower additionally boosts its funding analysis capabilities and infrastructure, in addition to its skill to draw and retain high expertise.
“Our relationship with NEPC stemmed from the thrilling and distinctive alternative that each companies can provide the non-public wealth market when mixed,” Hightower Holding Chairman and CEO Bob Oros mentioned in a press release. “In partnership with NEPC, Hightower advisor practices may have expanded entry to funding administration options, analysis capabilities and a compelling set of funding alternatives.”
Hightower expects to maintain NEPC’s govt crew and funding course of intact. As soon as the deal closes, NEPC Managing Companion Mike Manning will be part of Hightower’s board of administrators.
NEPC, initially often called New England Pension Consultants, was based in 1986 by Chairman Emeritus Richard Charlton. The agency is employee-owned and has greater than 360 staff.
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 non-public fairness agency Thomas H. Lee Companions; in Could, WealthManagement.com reported the non-public fairness agency took Hightower off the market as a result of it didn’t get the value it was searching for from potential consumers, in line with 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 govt accomplice in THL’s monetary expertise and providers vertical.
Over the past 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 companies, AndCo Consulting and Fourth Road Efficiency Companions, in early February, including $104 billion in property and 100 staff.
