Hightower
Hightower is one of the largest Registered Investment Advisors (“RIAs”) in the U.S., primarily focused on serving high- and ultra-high-net-worth clients.
Hightower provides a comprehensive, independent wealth management platform that serves an end-to-end fiduciary. The platform holds all aspects of the client and advisor need such as advisory community, marketing services, financial management, CRM, custodians, etc,. Hightower operates as an aggregator, acquiring majority stakes in smaller RIAs. Their acquisition model addresses both the advisors’ demand for autonomy and give access to the Hightower platform, removing overhead burden allowing 100% focus on clients. This unlocks capacity and creates a win-win situation where Hightower and the target can grow together with aligned economic incentives.
Ownership: Minority investment
Investment rationale
- Rapidly growing market, driven by secular trends supported by regulation and customer demand driving increased adoption of the fiduciary model offering increased transparency and objectivity as well as stand-alone advisors joining aggregator platforms such as Hightower
- Best-in-class platform in place allowing advisors to focus on their largest value-add, unlocking hidden value leading to improved margins and accelerated growth
- The acquisition model effectively aligns economic incentives and lock in partner affiliate revenues, de-risking the model, allowing recurring revenue to increase from23% to 97% since 2018
