Hightower, the Chicago-based RIA aggregator, today said it had made a strategic investment in Capital Management Group of New York, a $3.3 billion firm with offices in New York City and Pearl River, N.Y. CMG said it’s moving to the RIA space from the independent broker-dealer space, according to a news release.

The financial terms of the investment were not disclosed.

CMG, which has 38 team members, including six partners who are co-owners and six other advisors, was founded in 1992 by Thomas M. Mingone, managing partner. The firm offers a comprehensive approach to wealth management that includes tax-advantaged investing, asset allocation, protection planning, charitable giving, legacy and estate planning strategies, the release noted.

“Our decision to move to an RIA from the independent broker-dealer space was driven by our steadfast commitment to growth and serving our clients’ evolving needs,” Mingone said in a statement. “Gaining access to Hightower's rich and robust suite of services and tools, combined with the deep knowledge and partnership within the community, will spearhead the next evolution of our business. We are confident we have found the right home for our practice.”

CMG is the first deal of 2024 for the Chicago-based Hightower, which announced 12 transactions in 2023. It is also the fifth firm formerly affiliated with an independent broker-dealer in which Hightower has made a strategic investment and successfully on-boarded onto its network, the release noted. CMG was previously affiliated with Equitable Advisors.

Hightower Chairman and CEO Bob Oros said CMG “has a reputation for creating sophisticated financial plans and building lasting relationships that help their clients meet their holistic wealth needs over the short and long term,” adding that “they are in a pivotal growth phase, and Hightower can provide new opportunities for their business by providing additional capabilities aimed to enhance both the advisor and client experiences.”

Founded in 2008, Hightower offers investment, financial and retirement planning services through 138 financial advisory businesses in 35 states and the District of Columbia. As of September 30, 2023, the firm had about $131 billion in assets under management.