Key Takeaways
- • Hightower Holding, a Chicago-based RIA, will take a majority interest in NEPC LLC, the Boston-based investment consultant and OCIO provider founded in 1986, with completion scheduled for 2025.
- • Combined, the two firms would have $1.8 trillion in assets under administration and $258 billion in assets under management, according to the firms' joint announcement.
- • NEPC serves more than 400 clients representing $1.66 trillion in assets and will retain a 20% ownership stake and operate independently.
- • Hightower says the deal will bolster its access to institutional-quality research, alternative assets and outsourced CIO capabilities for the private wealth segment.
- • NEPC Managing Partner Mike Manning will join Hightower's board after the deal closes; financial terms were not disclosed.
Summary
Hightower Holding, a Chicago-based registered investment advisory, will 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 close in 2025. The firms announced the transaction on a Monday, stating that the combined business would have $1.8 trillion in assets under administration and $258 billion in assets under management under one parent company. Neither firm disclosed deal terms.
NEPC, founded in 1986, will continue to operate independently and will retain a 20% ownership stake in the firm, according to a spokesperson. Hightower, founded in 2008, has expanded its RIA base rapidly through acquisitions amid consolidation in the sector. NEPC serves more than 400 clients representing $1.66 trillion in assets. According to Hightower, the stake will strengthen its access to institutional-quality investment research, alternative assets and OCIO capabilities for the private wealth segment, which the firm described as increasingly attractive to wealth investors. For NEPC, the firms said the transaction will create a "new growth channel" across its investment advisory and OCIO services in wealth management.
Under the agreement, NEPC Managing Partner Mike Manning will join Hightower's board of directors after closing. Hightower stated that NEPC is expected to retain its culture, executive team and investment process, with no disruption to existing operations or client service. Bob Oros, chairman and CEO of Hightower, described the transaction as a "transformational combination" that offers a distinctive opportunity for the private wealth market.
The deal reflects a broader trend of RIAs adding institutional investment and consulting capabilities, while firms that began as qualified plan advisories are pursuing wealth management divisions to expand their footprints. Hightower provides investment, financial and retirement planning services to individuals, foundations and family offices, and offers 401(k) consulting and cash management services to corporations.
Moelis & Co. advised NEPC on the transaction, with Goodwin Proctor LLP serving as its legal counsel. Berkshire Global Advisors advised Hightower on the institutional investment consulting and OCIO industry, and Kirkland & Ellis LLP provided legal counsel to Hightower.
The story was reported by ai-cio.com.
NEPC, founded in 1986, will continue to operate independently and will retain a 20% ownership stake in the firm, according to a spokesperson. Hightower, founded in 2008, has expanded its RIA base rapidly through acquisitions amid consolidation in the sector. NEPC serves more than 400 clients representing $1.66 trillion in assets. According to Hightower, the stake will strengthen its access to institutional-quality investment research, alternative assets and OCIO capabilities for the private wealth segment, which the firm described as increasingly attractive to wealth investors. For NEPC, the firms said the transaction will create a "new growth channel" across its investment advisory and OCIO services in wealth management.
Under the agreement, NEPC Managing Partner Mike Manning will join Hightower's board of directors after closing. Hightower stated that NEPC is expected to retain its culture, executive team and investment process, with no disruption to existing operations or client service. Bob Oros, chairman and CEO of Hightower, described the transaction as a "transformational combination" that offers a distinctive opportunity for the private wealth market.
The deal reflects a broader trend of RIAs adding institutional investment and consulting capabilities, while firms that began as qualified plan advisories are pursuing wealth management divisions to expand their footprints. Hightower provides investment, financial and retirement planning services to individuals, foundations and family offices, and offers 401(k) consulting and cash management services to corporations.
Moelis & Co. advised NEPC on the transaction, with Goodwin Proctor LLP serving as its legal counsel. Berkshire Global Advisors advised Hightower on the institutional investment consulting and OCIO industry, and Kirkland & Ellis LLP provided legal counsel to Hightower.
The story was reported by ai-cio.com.
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