RIA aggregator Hightower Holding has agreed to acquire a majority interest in NEPC LLC, a Boston investment consultant and private wealth advisor that tops $1.66 trillion in assets under administration and management, according to a press release.
NEPC manages about $95.4 billion in assets for clients ranging from individuals, pensions and profit-sharing plans, charitable organizations and insurance companies to government entities, according to the company's latest Form ADV, filed with the SEC earlier this month.
The combination of Hightower, its affiliates, and NEPC represents more than $1.8 trillion in AUA and $258 billion in AUM, the press release said.
Hightower Holding Chairman and CEO Bob Oros called the deal “a transformational combination that highlights the future of financial services and wealth management."
Financial details of the transaction were not disclosed. But the deal was seen as a major one for Hightower that strengthens its position in the institutional market.
Hightower said combining with NEPC, also an outsourced chief investment officer provider with more than 400 retainer clients, will allow NEPC and Hightower Advisors to “expand their commitments to clients to deliver institutional-quality investment solutions and research-driven advice.”
“A combined Hightower and NEPC strategically positions both firms across their target markets and adds scale and resilience,” Hightower said in a statement. The RIA added that the combined offerings of the partnership will create new opportunities for NEPC to serve the private wealth channel while still providing its clients with investment advisory and OCIO services.
Hightower said NEPC will retain its "culture," executive team and investment process after the deal is complete. NEPC Managing Partner Mike Manning will join the Hightower board of directors upon closing, according to the release.
“In partnership with NEPC, Hightower advisor practices will have expanded access to investment management solutions, research capabilities, and a compelling set of investment opportunities,” Oros said. “We are excited to embark on this journey alongside NEPC and support their future growth in their current markets and new ones.”
Manning of NEPC said he’s confident his firm is now strategically positioned for the future.
“Since NEPC’s founding, our top priority has been to provide clients with pioneering investment solutions and consulting,” he said in a statement. “Today’s announcement is a continuation of this commitment. Hightower represents the ideal partner for us, as we leverage the strong growth of our current clients and continue our expansion into the private wealth market, all while preserving the strong culture and investment solutions that our clients trust and rely upon.”
The NEPC deal comes a month after Hightower said it invested in a Florida wealth management practice that managed $2.3 billion in assets