A significant stake in NEPC, an investment consultant and outsourced chief investment officer, will be purchased by Hightower Holding.
Merging under an umbrella entity will allow NEPC and Hightower Advisors (“Hightower”), one of the country’s major RIAs, to broaden their commitments to customers by providing institutional-quality investment solutions and research-driven advice.
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Hightower’s current suite of financial services for its advisers and their customers will be strengthened by NEPC’s institutional research and investment skills, as more private wealth investors show interest in allocating to private market investments.
Through this deal, NEPC shall continue to provide OCIO and investment consulting services to its clients while collaborating with Hightower to establish a new growth channel.
In addition to adding scale and resilience, a combined Hightower and NEPC strategically positions both businesses throughout their target markets. Together, Hightower, its affiliates, and NEPC have about $1.8trn in AUA and $258bn in AUM.
Moreover, in order to prevent any disruption to its current company operations and customer service, NEPC is anticipated to maintain its executive team, culture, and investment process, much like its prior Hightower Holding investments.
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By GlobalDataNew potential for NEPC to service the private wealth channel will arise from further improvements to the offerings of both organisations. After the deal closes, Mike Manning, NEPC managing partner, will become a member of the Hightower board of directors.
Bob Oros, Chairman & CEO at Hightower Holding stated: “This is a transformational combination that highlights the future of financial services and wealth management. Our relationship with NEPC stemmed from the exciting and distinctive opportunity that both businesses can offer the private wealth market when combined. We create a stronger whole by maintaining our company identities and deploying our strengths together. In partnership with NEPC, Hightower adviser practices will have expanded access to investment management solutions, research capabilities, and a compelling set of investment opportunities. We are excited to embark on this journey alongside NEPC and support their future growth in their current markets and new ones.”
Manning added: “Since NEPC’s founding, our top priority has been to provide clients with pioneering investment solutions and consulting. Today’s announcement is a continuation of this commitment. Hightower represents the ideal partner for us, as we leverage the strong growth of our current clients and continue our expansion into the private wealth market, all while preserving the strong culture and investment solutions that our clients trust and rely upon. We are confident that our firm is strategically positioned for the future alongside Hightower, enabling us to deliver conviction and quality counsel to assist our clients in achieving their optimal outcomes.”
Moelis & Company LLC assisted NEPC on the transaction, while Goodwin Procter, LLP provided legal guidance. Hightower Holding hired Berkshire Global Advisors to do industry research on the institutional investment consulting and OCIO industries, while Kirkland & Ellis, LLP offered legal guidance.
