Hightower, an acquisitive wealth management firm headquartered in Chicago, has acquired Bel Air Investment Advisors LLC, a Los Angeles-based advisory business with $8 billion in client assets, the companies announced today in a news release. The transaction is Hightower's largest in its 14-year history.
Founded in 1997 by Todd Morgan, Bel Air was formerly owned by Fiera Capital Corporation, a publicly-owned investment management firm located in Montreal, Canada. Fiera acquired the U.S. firm in 2013.
Bel Air has 43 employees, including 10 advisors. The company provides financial advice, and asset and investment management services to high-net-worth individuals, families, trusts and foundations with $20 million or more in investable assets. It is one of the nation’s largest independent advisory businesses for the ultra-high-net-worth segment of the private wealth market, serving over 300 families across the United States and overseas.
David Sadkin, president of Bel Air, says the firm is a leader of the independent wealth management model. In the news release, he said that the firm’s new partnership with Hightower would enable it to continue developing new and innovative ways of serving the needs and interests of the wealthy individuals, families and foundations that are its core clientele.
"Joining Hightower will enable us to continue to operate and build our platform while leveraging the firm's strategic advice, scale, technology, and infrastructure,” Sadkin said. “This will allow Bel Air advisors to fully focus on providing distinctive investment advice and services to our clients."
Bel Air's move to Hightower, a privately held company, returns the firm to private ownership. Under terms of the deal, Bel Air's founders and leaders will have equity in the company, while continuing to serve in key roles with it.
"Bel Air is a successful, multi-generational wealth management business led by a group of highly talented and experienced advisors," Bob Oros, CEO of Hightower, said in the news release. "We are honored to be welcoming Bel Air to Hightower and look forward to collaborating with the team and providing access to our strategic consulting services, which focus on organic growth and talent development, as well as offering additional scale through our middle- and back-office capabilities."
Including Bel Air Investment Advisors, Hightower's M&A team has completed 14 transactions since early 2019. The firm has 114 advisory businesses in 33 states.
As of Sept. 30, 2020, Hightower reported approximately $81.4 billion in assets under administration (AUA) and $61.6 billion in assets under management (AUM).
In the current transaction, RBC Capital Markets and Stifel GMP served as financial advisors to Fiera Capital, while also assisting Bel Air management in structuring the Hightower partnership. Financial details of the transaction were not disclosed.