Hightower, a wealth management firm based in Chicago, has made a strategic investment in Frontier Investment Management, a Dallas-based wealth advisory business managing $3.3 billion in client assets as of June 30, the companies announced Tuesday.
Financial terms of the transaction were not disclosed.
Founded in 1994, Frontier serves individuals, families and corporations in nine offices in Dallas, Houston and Austin, Tex.; New Orleans; Denver; Scottsdale, Ariz.; St. Petersburg, Fla.; and San Ramon and San Diego, Calif. Frontier principals Brian Hattendorf, Richard Sowden and Gary Schoen lead a team of 42 employees, including 35 who work directly with clients in an advisory capacity.
As part of the deal, Frontier will leverage Hightower’s middle- and back-office operations, business consulting and supportive community to grow and scale their business. Additionally, eight Frontier employees will be promoted to partner as part of its growth strategy.
“At a time of significant consolidation and change in the industry, Hightower’s intellectual capital and institutional-quality infrastructure will give us the ability to nurture our next generation of leaders, expand our reach, and scale our business to benefit our clients, partners and team members,” Hattendorf said in a news release.
Frontier looked seriously at nine different partners before choosing Hightower, according to Sowden.
“Hightower’s entrepreneurial culture was a great fit for us,” he said. “Their willingness to embrace our brand, team and legacy were key factors in our decision to join the company.”
With this transaction, which is Hightower’s third in 2020, the company now has 108 advisory businesses in 33 states.
“Frontier is a successful business with a talented, energetic next generation that are poised to scale,” Bob Oros, CEO of Hightower, said in the news release.
According to Hightower, the company offers independent-minded advisory businesses a capital-rich partner and customizable suite of services designed to help accelerate both organic and inorganic growth. Hightower says it also provides an advanced, integrated advisor platform that includes technology, compliance, accounting, payroll, human resources, investment research/due diligence and marketing services.
Advisory groups that partner with Hightower also gain access to business development consulting, leadership and team development through the Elevate program, economies of scale, deep industry relationships and a supportive advisor community.
Hightower had assets under administration of $75.7 billion and assets under management of $56.7 billion as of this year's first half. The company grew organically 9.6% in 2019, up from 8% in 2018.
Cambridge International Partners advised Frontier in the transaction, which is expected to close in this year's third quarter, subject to regulatory approvals and other customary closing conditions.