Chicago RIA aggregator HighTower has made a strategic investment in Schultz Collins Inc., a $1 billion advisory firm headquartered in San Francisco, buying a “significant” equity stake in the company that includes an undisclosed sum of cash, according to HighTower CEO Bob Oros in an e-mail to Financial Advisor.
Dale W. Schultz, Patrick J. Collins and Kristor J. Lawson founded Schultz Collins in 1995. The firm is HighTower’s 25th external RIA transaction since inception and its fourth in 2019. Including the Schultz Collins transaction, HighTower now has 107 advisory businesses in 34 states, according to a news release reporting the deal.
HighTower adopted an acquisition-based model beginning in 2018, and has transacted with firms that include Lexington Wealth Management, LourdMurray, Green Square Wealth Management, WealthTrust and Salient Private Client (now known as HighTower Texas), as well as Salient Private Client’s trust group.
As of September 30, 2019, HighTower reported $71.3 billion in assets under administration and $59.5 billion in assets under management.
In January of this year, HighTower went through its own internal changes, when industry veteran Oros became the new CEO after founder Elliot Weissbluth became company board chairman. In a news release, Oros discussed HighTower’s latest investment partner.
“Schultz Collins’ dedicated approach to working hand-in-hand with clients and its commitment to delivering objective advice are key factors in their success,” he said. HighTower looks forward to helping the firm “scale their business in Silicon Valley, the West Coast and across the U.S.”
Schultz Collins also has offices in Washington, D.C., and Towson, Md.
Asked what advantages the investment model offered HighTower when seeking to affiliate with other firms, Oros said its success was self-explanatory.
“HighTower now owns 91% of the revenue of its advisory businesses, up from just 23% back in January 2018,” he said.
He said HighTower is just as committed to ensuring the success of its advisors.