Key Takeaways
- • Hightower Holding, a Chicago-based RIA, will take a majority interest in NEPC LLC, the Boston-based institutional investment consultant and OCIO provider, with the deal scheduled to close in 2025.
- • The combined firms would have $1.8 trillion in assets under administration and $258 billion in assets under management, according to the announcement made Monday.
- • NEPC, founded in 1986, will keep operating independently and retain a 20% ownership stake; neither firm disclosed deal terms.
- • NEPC Managing Partner Mike Manning will join Hightower's board after closing, and NEPC is expected to keep its culture, executive team and investment process.
- • The transaction reflects a broader trend of RIAs adding institutional consulting and OCIO capabilities to serve the private wealth market.
Summary
Hightower Holding, a Chicago-based registered investment advisory firm founded in 2008, has agreed to take a majority interest in NEPC LLC, a Boston-based institutional investment consultancy and outsourced chief investment officer (OCIO) provider. The deal is scheduled to be completed in 2025. The firms announced the transaction on Monday, stating that the combined business would have $1.8 trillion in assets under administration and $258 billion in assets under management. Neither firm disclosed the financial terms of the deal.
NEPC, founded in 1986, will continue to operate independently and will retain a 20% ownership stake in the firm, according to a spokesperson. NEPC serves more than 400 clients representing $1.66 trillion in assets. After the transaction closes, NEPC Managing Partner Mike Manning will join Hightower's board of directors. Hightower stated that NEPC is expected to retain its culture, executive team and investment process, ensuring no disruption to its existing business operations and client service.
Hightower has expanded its RIA base rapidly through acquisitions amid consolidation in the advisory sector. According to Hightower, the NEPC stake will strengthen its access to institutional-quality investment research, alternative assets and OCIO capabilities for the private wealth segment, which the firm says is becoming more attractive to wealth investors. Hightower provides investment, financial and retirement planning services to individuals, foundations and family offices, as well as 401(k) consulting and cash management services to corporations. Bob Oros, chairman and CEO of Hightower, described the deal as a "transformational combination" that offers a distinctive opportunity for the private wealth market. For NEPC, the firms said the arrangement will create a "new growth channel" across its investment advisory and OCIO services in wealth management.
The transaction is part of a growing trend among RIAs to add institutional investment and consulting capabilities, while firms that originated as qualified plan advisories continue to build out wealth management divisions. Moelis & Co. advised NEPC on the transaction, with Goodwin Proctor LLP serving as its legal counsel. Berkshire Global Advisors advised Hightower on the institutional consulting and OCIO industry, and Kirkland & Ellis LLP provided Hightower's legal counsel.
NEPC, founded in 1986, will continue to operate independently and will retain a 20% ownership stake in the firm, according to a spokesperson. NEPC serves more than 400 clients representing $1.66 trillion in assets. After the transaction closes, NEPC Managing Partner Mike Manning will join Hightower's board of directors. Hightower stated that NEPC is expected to retain its culture, executive team and investment process, ensuring no disruption to its existing business operations and client service.
Hightower has expanded its RIA base rapidly through acquisitions amid consolidation in the advisory sector. According to Hightower, the NEPC stake will strengthen its access to institutional-quality investment research, alternative assets and OCIO capabilities for the private wealth segment, which the firm says is becoming more attractive to wealth investors. Hightower provides investment, financial and retirement planning services to individuals, foundations and family offices, as well as 401(k) consulting and cash management services to corporations. Bob Oros, chairman and CEO of Hightower, described the deal as a "transformational combination" that offers a distinctive opportunity for the private wealth market. For NEPC, the firms said the arrangement will create a "new growth channel" across its investment advisory and OCIO services in wealth management.
The transaction is part of a growing trend among RIAs to add institutional investment and consulting capabilities, while firms that originated as qualified plan advisories continue to build out wealth management divisions. Moelis & Co. advised NEPC on the transaction, with Goodwin Proctor LLP serving as its legal counsel. Berkshire Global Advisors advised Hightower on the institutional consulting and OCIO industry, and Kirkland & Ellis LLP provided Hightower's legal counsel.
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