Hightower, a Chicago wealth management firm, has made a strategic investment in Teak Tree Capital Management, an advisory business in Fort Worth Texas, with about $600 million in assets under management, the companies announced today in a news release.

Financial details of the transaction were not disclosed.

Founded in 2009, Teak Tree has seven employees, including three advisors, who provide financial planning and research-driven investment strategies to entrepreneurs, business professionals and multigenerational families, the release said.

Under terms of the deal, Teak Tree will maintain its own brand. Hightower will provide a collaborative business model that includes back-office resources and assistance, integrated technology, growth acceleration services, and a supportive advisor community, the release said.

The transaction is expected to close in the fourth quarter of 2020, subject to regulatory approvals and other customary closing conditions, the release said.

“Our firm was built on collaboration—our advisors and employees work closely together to serve our clients across all their wealth management needs,” Teak Tree co-founder Adam Deem said in the release. “Joining Hightower will extend this collaboration as we gain access to the support and experience of other Hightower advisors. Idea-sharing really serves everyone well, especially our clients.”

Stephen Kaye, also a co-founder and partner at Teak Tree, emphasized that succession planning takes years to implement, and that Hightower will be instrumental in ensuring that the firm he helped found can go on for years to come.

“Adam and I aren’t going anywhere anytime soon, but we have taken a big step toward making sure our clients will be OK for the long term,” Kaye said in the release. “We told our clients in a recent letter that Teak Tree has gone from a child to an adult, and Hightower will attend to many of the needs of a mature business. This is the right time to join with Hightower.”

Teak Tree is Hightower's fifth transaction in 2020. Including this transaction, Hightower now has 110 advisory businesses in 33 states.

"Teak Tree is a strong business that is poised for further growth in the Fort Worth area and beyond,” Bob Oros, CEO of Hightower, said in the release. “We are excited to be providing the Teak Tree team with middle- and back-office operations, advanced integration, business acceleration services and additional client resources to give them more time to care for clients and nurture prospects.” 

Hightower offers independent-minded advisory businesses a capital-rich partner and customizable suite of services designed to help accelerate both organic and inorganic growth by providing them with an advanced, integrated advisor platform that includes technology, compliance, accounting, payroll, human resources, investment management services and marketing support. 

Advisory groups that partner with Hightower also gain access to business development consulting, leadership and team development, economies of scale, deep industry relationships and a nationwide advisor community.

As of June 30, Hightower's assets under administration (AUA) were about $75.7 billion and its assets under management were $56.7 billion. The company grew 9.6% organically in 2019, up from 8% in 2018.