Hightower announced it will acquire a majority interest in NEPC, a leading investment consultant and outsourced chief investment officer (OCIO). Combining under a common parent company will enable each organization – NEPC and Hightower Advisors (one of the country’s leading RIAs) – to expand their commitments to clients to deliver institutional-quality investment solutions and research-driven advice.
As more private wealth investors express interest in allocations to private market investments, NEPC’s institutional research and investment capabilities will support Hightower’s existing wealth management solutions for its advisors and clients. With this deal, NEPC’s clients will continue to receive investment advisory and OCIO services while creating a new growth channel in partnership with Hightower. A combined Hightower and NEPC strategically position both firms across their target markets, adding scale and resilience. The combination of Hightower, its affiliates, and NEPC represents over $1.8 trillion in assets under administration (AUA) and $258 billion in assets under management (AUM).
Similar to previous Hightower Holding investments, NEPC is expected to retain its culture, executive team, and investment process, ensuring no disruption to its existing business operations and client service. And additional enhancements to organizations’ offerings will create new opportunities for NEPC to serve the private wealth channel. NEPC Managing Partner Mike Manning will join the Hightower Board of Directors upon closing as part of the deal.
In the deal, NEPC was advised by Moelis & Company and Goodwin Procter provided legal counsel. Hightower Holding engaged Berkshire Global Advisors to provide industry research on the institutional investment consulting and OCIO industry and Kirkland & Ellis provided legal counsel.
KEY QUOTES:
“This is a transformational combination that highlights the future of financial services and wealth management. Our relationship with NEPC stemmed from the exciting and distinctive opportunity that both businesses can offer the private wealth market when combined. We create a stronger whole by maintaining our company identities and deploying our strengths together. In partnership with NEPC, Hightower advisor practices will have expanded access to investment management solutions, research capabilities, and a compelling set of investment opportunities. We are excited to embark on this journey alongside NEPC and support their future growth in their current markets and new ones.”
– Bob Oros, Chairman & CEO at Hightower Holding
“Since NEPC’s founding, our top priority has been to provide clients with pioneering investment solutions and consulting. 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. We are confident that our firm is strategically positioned for the future alongside Hightower, enabling us to deliver conviction and quality counsel to assist our clients in achieving their optimal outcomes.”
– Michael Manning, Managing Partner at NEPC
