HighTower Advisors’ owner is seeking ways to divest its majority interest in the business.
Private-equity firm Thomas H. Lee Partners (THL) is the majority stakeholder in HighTower. It now plans to offload this holding, according to Reuters, which it bought in 2017.
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The report was not confirmed by the advisory firm or its private equity owner.
THL is open to selling its majority holding partially or fully and has reportedly started consultations with advisers on the same.
However, talks on the matter are said to be at a preliminary stage.
Citing undisclosed sources, Reuters said that a sale would offer HighTower a valuation of over $2bn, including debt.
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By GlobalDataIf the deal goes through, it would continue the recent trend of consolidation activities in the US.
The US wealth management industry witnessed various high profiles in 2019. Among them are the acquisitions of United Capital Financial Partners by Goldman Sachs and Charles Schwab’s purchase of USAA Investment Management Company assets.
Developments at Hightower
Last month, Hightower unveiled a new brand image and tagline, including a multi-coloured logo and message – ‘well-th. rebalanced’.
HighTower has also made several investments in the wealth management space in recent years.
In 2019, it invested in Schultz Collins, Lexington Wealth Management, LourdMurray, and Green Square Wealth Management.
According to Hightower’s website, the firm’s assets under management at 2019 end have reached over $70bn.
