Hightower today announced that it will make a strategic investment in Altium Wealth Management, a $2.7 billion firm in Purchase, N.Y. that focuses on delivering wealth management and advisory services for wealthy and ultra-wealthy clients and their families.
The transaction is expected to close in the second quarter of 2022. It is the third transaction this year for Chicago-based Hightower, which closed 13 deals last year.
Founded in 2010, Altium specializes in risk-based, low-cost and tax-efficient portfolios delivered through its comprehensive consulting and proprietary direct indexing solution to help clients protect and grow wealth, the release noted. The firm has 39 employees, including 18 advisors.
Altium’s direct indexing solution will enable Hightower advisors to create customized portfolios in accordance with clients’ tax objectives and investment preferences, the release noted. “The direct-indexing tools will be part of Hightower’s valued-added investment solutions that advisors can use to complement their own portfolio construction,” the release said.
“Altium is a fast-growing business that is passionate about providing clients with tax-aware planning and portfolios that align with their individual goals, delivered via personalized consulting and their direct-indexing solutions,” Bob Oros, chairman and CEO of Hightower, said in a statement. “We are excited to leverage Altium’s specialized portfolio customization capabilities and make them available to Hightower advisors and clients while, at the same time, supporting the Altium team in attracting new client relationships and scaling.”
Anthony DeStefano, one of Altium’s founders, noted that the firm, since its founding, has steadily grown both in assets under management and the number of families it works with. “We thought carefully about when to take this next step with a partner to help us achieve our expectations for continued double-digit growth while continuing to maintain the highest standards for client service. We have no doubt that Hightower is the right partner and now is the right time,” he said.
Another founder, Jim Dowling, added that the firm has developed a business model solving for what they would want as clients. “Our inherent motivation to be disruptors in the industry paired with the clients that we are fortunate to serve has driven our success, yet we recognize that we would benefit from greater operational support and scale,” he said. “Hightower provides that support with business consulting, marketing and other meaningful value-added services to help us expand and enhance our wealth management offerings.”
Hightower provides investment, financial and retirement planning services to individuals, foundations and family offices, as well as 401(k) consulting and cash management services to corporations. The firm has 123 advisory businesses across 34 states and the District of Columbia. As of December 31, the firm’s assets under administration (AUA) were about $144 billion, and its assets under management (AUM) were $117.8 billion.