With a new majority interest in the investment consultant NEPC, Hightower is turning itself into a behemoth with more than $2 billion in client assets under management or advisement.
Hightower, a large advisory firm in Chicago, announced Tuesday that it is taking a majority stake in Boston-based NEPC, an investment consultant and private wealth advisor working with more than $1.66 trillion in client assets. The combination will give the firms $1.8T in assets under administration and $258 billion in assets under management.
The deal, whose terms were not announced, is expected to give Hightower and its clients access to NEPC's institutional research and new investment opportunities. Hightower's latest Form ADV filed with the Securities and Exchange Commission on Oct. 8 lists roughly $130 billion in assets under management.
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"This is a transformational combination that highlights the future of financial services and wealth management," Bob Oros, the chairman and CEO of Hightower Holding, said in a statement."Our relationship with NEPC stemmed from the exciting and distinctive opportunity that both businesses can offer the private wealth market when combined."
Hightower said it plans to keep NEPC's brand, executive team and investment systems intact. NEPC was founded in 1986 as New England Pension Consultants. Michael Manning, managing partner at NEPC, said the partnership will help his firm gain access to more private wealth clients.
"Since NEPC's founding, our top priority has been to provide clients with pioneering investment solutions and consulting," Manning said in a statement. "Today's announcement is a continuation of this commitment.
Hightower is owned by the private equity firm Thomas H. Lee Partners.
