HighTower continued to make waves as a serial acquirer in the RIA M&A space when it announced Tuesday that it has made a strategic investment in Schultz Collins, a $1 billion advisory group with offices in San Francisco, Washington, D.C., and Towson, Md. Terms of the deal were not disclosed.
The investment is HighTower’s fourth in 2019 and 25th since inception. With the addition, HighTower now has 107 advisory businesses in 34 states. DeVoe and Company, the San Francisco-based investment bank and research outfit, advised HighTower on the deal. Jim Grand of the Securities Law Group advised Schultz Collins. The transaction is expected to close in the fourth quarter.
“Schultz Collins’ dedicated approach to working hand in hand with clients and its commitment to delivering objective advice are key factors in their success,” said Bob Oros, CEO of HighTower. “We are honored to welcome Schultz Collins to HighTower and look forward to helping them scale their business in Silicon Valley, the West Coast and across the U.S.”
“We are pleased to be joining HighTower, and look forward to utilizing its business consulting, operational support, capital and other services for the benefit of our clients,” said Kristor J. Lawson, managing principal of Schultz Collins. “HighTower’s support will enable us to strengthen existing relationships and expand services while remaining steadfast in our commitment to clients.”
After receiving a “significant” investment from private equity firm Thomas H. Lee Partners in 2017, Hightower embarked upon an acquisition-based growth strategy, abandoning its original partnership model and restructuring deals with partners. Since then, HighTower has bought or invested in a number of large RIAs, including Lexington Wealth Management, LourdMurray and Green Square Wealth Management, and, prior to that, WealthTrust and Salient Private Client (now HighTower Texas), including Salient Private Client’s trust group.
Schultz Collins was founded in 1995 by Dale W. Schultz, Patrick J. Collins and Kristor J. Lawson. Seven of its 11 employees are advisors, and every advisor there holds an advanced certification or academic degree at the CFP-, CFA- or master’s degree level.
As of Sept. 30, 2019, HighTower’s assets under administration (AUA) were approximately $71.3 billion and its assets under management (AUM) were $59.5 billion.