Hightower to Take Majority Stake in $1.66T NEPC
Hightower Holdings will purchase an 80% stake in NEPC, LLC, an investment consultant and outsourced chief investment officer (OCIO) with about $1.7 trillion in assets under advisement.
Boston-based NEPC will operate independently from Hightower and retain a 20% ownership in the firm, a spokesperson told Connect Money. Terms of the deal, which is expected to close in the first quarter of 2025, were not disclosed.
The transaction would consolidate the two firms under a single parent company, which would oversee $1.8 trillion in assets under administration and $258 billion in assets under management.
Mike Manning, managing partner of NEPC, will be appointed to Hightower’s board of directors following the completion of the transaction. Hightower said NEPC is “expected to retain its culture, executive team, and investment process, ensuring no disruption to its existing business operations and client service.”
In recent years, Hightower, which is headquartered in Chicago, has been swiftly expanding its RIA base through acquisitions in response to the sector’s consolidation. According to Hightower, the NEPC stake will enhance its access to institutional-quality investment research, alternative assets, and OCIO capabilities for the private wealth segment of the market.
“In partnership with NEPC, Hightower advisor practices will have expanded access to investment management solutions, research capabilities, and a compelling set of investment opportunities,” said Bob Oros, chairman & CEO at Hightower Holding.
Backed by private equity firm Thomas H. Lee Partners, Hightower is a wealth management firm that 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
NEPC was advised by Moelis & Company LLC and Goodwin Procter, LLP provided legal counsel. Hightower Holding engaged Berkshire Global Advisors to provide industry research on the institutional investment consulting and OCIO industry and Kirkland & Ellis, LLP provided legal counsel.