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Industry Spotlight > Mergers and Acquisitions

Hightower Continues Growth Streak With $2B RIA Acquisition

By Jeff Berman

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What You Need to Know

  • Hightower said Wednesday it acquired Vigilant Wealth Management.
  • Vigilant specializes in providing solutions to high-net-worth individuals and families, executives, entrepreneurs and business owners.
  • The specific terms of the transaction were not disclosed, but a Hightower spokesperson said the deal is expected to close around June 30.

Hightower, a registered investment advisor, said Wednesday it acquired RIA Vigilant Wealth Management, a full-service wealth management business with offices in Portland, Maine, and Portsmouth, New Hampshire, that manages about $2.3 billion in client assets across 500 households.

“We’re not disclosing specific terms of the transaction,” a Hightower spokesperson told ThinkAdvisor by email. “What we can say is that the transaction involved cash and equity” and “the deal is expected to close around June 30.”

The spokesperson added: “The acquisition of Vigilant follows the same strategy Hightower has been taking with acquiring firms over the last few years. Meaning, Vigilant is integrating into Hightower but maintaining an economic interest in, as well as strategic and management control of, the business. Hightower is acquiring 100% of the assets of the firm — Vigilant’s ADV will move on to Hightower’s ADV.”

The deal was made as a “strategic investment” by Hightower, the company said. Vigilant was advised on the transaction by Cambridge International Partners.

This was the fifth deal announced by Hightower so far this year. The firm said on May 8 it made a strategic investment in TEN Capital Wealth Advisors, a $1 billion RIA with offices in Seattle and Spokane, Washington, calling it one of the fastest-growing firms in the Pacific Northwest.

On Feb. 28, Hightower said it facilitated its first sub-acquisition, for Schultz Collins Investment Counsel, a Hightower advisory business based in Orinda, California.

On Feb. 13, Hightower said it made a strategic investment in Bickling Financial Services, a Lexington, Massachusetts-based firm with about $625 million in assets under management.

Additionally, on Feb. 8, Hightower said it facilitated a strategic merger between TC Wealth Partners and EFG Advisors, boosting TC assets to over $2 billion.

Vigilant was founded in 2002 and has 31 employees, including 11 wealth advisors. It is led by its three co-founding principals: Jeffrey F. Carlisle, Daniel M. Mulkern and Scott D. Sorensen. The company specializes in providing comprehensive investment and wealth planning solutions to high-net-worth individuals and families, executives, entrepreneurs and business owners.

“We chose to align with Hightower because of their partnership approach — providing scaling and strategic planning resources to our firm, while leaving us with the entrepreneurial freedom to control the identity, culture and strategic direction of Vigilant,” Carlisle said in a statement.

“We also share a focus in developing next-generation talent; the practical examples they shared from the Hightower Center for Leadership, ongoing working groups, and more made it clear that it’s something they have put significant resources behind.”

Vigilant will now “gain access to a variety of value-added resources at Hightower, including middle- and back-office support, business development consulting, marketing expertise, and a nationwide advisor community, which will enable the firm to continue its strong organic growth pace,” Hightower said in the statement.

“Vigilant Wealth Management encompasses everything Hightower looks for in a partner: a holistic wealth management offering, stellar organic growth approach, and impressive leadership team committed to the long-term well-being of its clients and people,” according to Bob Oros, Hightower CEO and chairman.

Hightower offers a variety of services to 132 advisory businesses in 34 states and the District of Columbia.

As of March 31, Hightower had about $148.2 billion in assets under administration. It also had $119.9 billion in AUM, an increase from $113.7 billion as of Dec. 31, it said.

(Pictured: Bob Oros, Hightower CEO and chairman)

Jeff Berman

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