Hightower Requires Stake in $830 Million New York RIA

January 26, 2021

Chicago-based RIA acquirer Hightower has purchased a stake in Siller & Cohen Household Prosperity Advisors, a Rye Brook, N.Y. registered expense advisor managing $830 million in property, according to a Tuesday announcement.

Economical terms of the offer, which Hightower claimed was its third M&A transaction of 2021, have been not disclosed. A spokesperson for the corporation explained Hightower took a “significant” stake in a transaction that associated a mix of funds and fairness.

Hightower before this month acquired Los Angeles-based mostly RIA Bel Air Investment decision Advisors, with $8 billion in assets under administration, from Fiera Money Corporation, a Montreal-based mostly publicly traded asset manager. It was Hightower’s greatest acquisition by asset size.

Siller & Cohen, founded in 1988 by Randy Siller and Jeffrey Cohen, presents multi-generational estate setting up, energetic tax administration, threat administration, company exit and succession arranging, complete monetary setting up, and divorce organizing. The agency, which experienced been an affiliate of independent broker-supplier Lincoln Money Advisors Corp., has 11 employees, together with 5 advisors, according to the announcement and registration information.

Siller reported in the release that they deemed 9 potential consumers but ended up drawn to Hightower by its give of added assist for functions, expense management, internet marketing and enterprise growth, according to the announcement.

“We are searching ahead to leveraging Hightower’s built-in technology for opening accounts, running portfolios, viewing held-absent assets and providing purchasers with accessibility to their total financial photograph through the mobile consumer portal,” Siller said.

Hightower, which has 115 advisory companies and $79.6 billion in client assets, has been an aggressive acquirer of RIA organizations since it shifted its target from its founding method of recruiting wirehouse brokers in 2017. The firm, led by Main Government Bob Oros, additional closed promotions for 9 tactics last 12 months.

Non-public fairness agency Thomas H. Lee Partners took a the greater part stake in Hightower in 2018, and in December of 2020, Hightower announced an further hard cash infusion with investments from money suggested by Goldman Sachs Asset Management, Neuberger Berman and Coller Capital.

Hightower’s announcement arrives as dealmaking in the RIA place hit a document in 2020, and the tempo of consolidation seems to be extending into the new year.

MAI Money Offer

Also on Tuesday, MAI Money Administration, a Cleveland-based mostly RIA, mentioned that it will obtain HW Financial Advisors. HWFA, which was started in 1999 and manages $700 million in assets, is a Beachwood, Ohio-centered RIA affiliate of accounting company HW&Co.

The firms did not disclose economic phrases of the deal, which is anticipated to near in the initial quarter of 2021. The transaction marks MAI’s 10th acquisition since having a minority expenditure in July of 2017 from Wealth Companions Capital Team, an RIA roll-up backed by Affiliated Supervisors Group, Inc.

HWFA’s president Stephen Rudolph, who was an MAI worker previously in his profession, will be taking care of director at MAI, according to the announcement.

“We are energized to welcome him again to MAI and do the job together to greatly enhance our presence within Cleveland and outside of,” Rick Buoncore, controlling lover at MAI, explained in a well prepared assertion.

HW&Co. will preserve a stake in HWFA soon after the MAI deal closes, in accordance to the announcement.

MAI has about $9.1 billion in total property under management.