Hightower has taken a stake within the Denver-based Dechtman Wealth Administration, a monetary planning agency with $800 million in shopper belongings. It’s Hightower’s sixth strategic funding of the 12 months.
Dechtman Wealth is a crew of eight led by three companions/wealth managers, together with founder Jordan Dechtman and his sons Sam and Adam Dechtman. The agency focuses on monetary steering, retirement revenue, tax and property planning.
The phrases of the deal between Hightower and Dechtman (together with the dimensions of the stake) weren’t disclosed. Based on Jordan Dechtman, becoming a member of Hightower will assist the agency entry a “host of further instruments and providers” to assist its purchasers.
“We function on 4 fundamental rules—all the time do what’s greatest for the shopper, present a straight-forward price, have clear communication and deal with purchasers with care and respect,” he stated.
Chicago-based Hightower works with companies in 35 states and Washington, D.C. Personal fairness agency Thomas E. Lee Companions owns Hightower; in Might, WealthManagement.com reported that the PE agency took it off the market as a result of it didn’t get the value it wished from potential consumers.
Advisor teams partnering with the agency get instruments for enhancing natural progress, together with consulting, advertising and marketing assist, tech and funding administration assets, and back-office wants like compliance, accounting and payroll. The companies additionally get help with inorganic progress methods, together with deal structuring, due diligence and capital for M&A.
In October, Hightower acquired a majority stake in NEPC, an institutional consulting agency and outsourced chief funding officer that introduced institutional analysis and funding capabilities in-house for Hightower advisors.
Hightower anticipated to maintain NEPC’s government crew and funding course of intact, with NEPC Managing Companion Mike Manning becoming a member of Hightower’s board of administrators. Hightower stated the deal would assist personal wealth traders fascinated about “allocations to personal market investments.”
Moreover, previously a number of months, Hightower has made strategic investments in Charles D. Hyman & Firm, a registered funding advisor in Ponte Verda Seaside, Fla., with $2.3 billion in shopper belongings, and Monetary Planning and Info Companies, a $1.1 billion RIA primarily based in De Pere, Wis.
In latest months, Hightower’s additionally been waging a authorized battle with Lars Knudsen, a former advisor who claimed the agency “hijacks” the books of enterprise of advisors like himself earlier than pushing these workers out, as Knudsen claims occurred to him.
Hightower introduced (and subsequently dropped) litigation in opposition to Knudsen, claiming he broke his non-solicitation vows after he was fired. Knudsen claimed the agency did so days earlier than a federal decide was more likely to rule in opposition to them.
Nevertheless, final month, Hightower sued the Wash.-based RIA the place Knudsen went to work, arguing the agency conspired with Knudsen to steal confidential Hightower info, which has price the agency $150 million in shopper belongings.
