Hightower, a registered investment advisor (RIA) headquartered in Chicago, has helped affiliate partner Lexington Wealth Management of Lexington, Mass., acquire Freed Investment Group, a $264 million advisory business based in Boston, the companies announced.
Financial details of the deal were not disclosed. The transaction is expected to close in the fourth quarter.
Advisors Kenneth Freed and Dennis Encarnation of Freed Investment Group provide comprehensive financial planning, investment management and tax planning services for high-net-worth and ultra-high-net-worth clients. Freed said in the news release that in searching for a partner, he and Encarnation were focused on finding one that could meet several key criteria.
“When looking for the right partner, we considered several different high caliber firms and chose Lexington because of its strong culture and team, as well as our shared belief that clients need not only financial guidance, but also emotional support to help them navigate important life events and plan for the future,” Freed said. “Lexington is built first and foremost on client trust, and this fact gave us confidence that it is the right place for our clients and staff—today and in the decades to come.”
Earlier this year, Lexington acquired Marcus Financial Advisors, a Beverly, Mass., firm managing $200 million in client assets. The addition of Freed Investment Group will increase Lexington’s assets under management to a total of $1.9 billion.
“As part of Hightower, Lexington offers us institutional-class operational capabilities as well as value-added services such as trust services and estate planning, which will allow us to provide a wider array of differentiated services to our clients and their families,” Encarnation said in the news release.
According to Lexington CEO Michael Tucci, the deal was helped by Hightower’s expertise in M&A transactions.
"Hightower played a key role in facilitating and structuring this deal to help us meet our long-established goal to grow inorganically, while maintaining our commitment to organic growth,” he said in the news release.
As a Hightower affiliate, Lexington is eligible to receive both inorganic growth services, from sourcing to deal structure, and organic growth strategies that include business development marketing services.
“It’s exciting to see Lexington’s growth aspirations come to fruition with two strategic mergers this year,” Hightower Chairman and CEO Bob Oros said. “Hightower is thrilled to have played a role in helping to bring Kenneth and Dennis aboard, and I look forward to seeing what’s next for Lexington."
As of September 30, Hightower reported assets under administration of about $132.2 billion, and assets under management of $104.1 billion.