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HighTower Acquires Strategic Stake In Wealth Manager

Tom Burroughes

21 August 2019

US wealth management firm HighTower has made “a strategic investment” for an undisclosed sum in Lexington Wealth Management, a Massachusetts-based advisory group.

LWM has $1 billion in assets under advisement and follows HighTower's other recent investments earlier this year in LourdMurray and Green Square Wealth Management, and, in the last two years, WealthTrust and Salient Private Client , including Salient Private Client's trust group. LWM is HighTower's 24th external RIA transaction since inception and its third in 2019.

HighTower advisors oversee approximately $70.3 billion in total client assets .

Lexington Wealth Management was advised on the transaction by Raymond James | Silver Lane Advisors. The transaction is expected to close in the third quarter of 2019, subject to regulatory approvals and other customary closing conditions.

Founded in 2000 by Michael Tucci and Kristine Porcaro, the group has 17 employees, including 11 advisors. 

"We view the addition of LWM as a key anchor in a very attractive market. The combination of their growth orientation along with access to HighTower's scale, sophistication and capital is a powerful formula,” Bob Oros, CEO of HighTower, said. 

The agreement is part of a trend of brisk wealth management M&A deals. Organizations such as corporate advisory house ECHELON Partners have pointed out the steady rising trend of deals involving groups such as RIAs. 

HighTower is backed by Boston-based private equity firm Thomas H Lee Partners, which is providing funding for the company to make strategic investments and acquisitions in the RIA space, expand the firm's services to advisors and advance growth. A number of private equity groups, such as Warburg Pincus, invest in firms related to the wealth management industry in the US and abroad.

To see a story earlier this week from LPL Financial about its M&A activity, click here.