Chicago-based Hightower has acquired Capital Management Group of New York, a 38-person firm overseeing $3.3 billion from offices in New York City and Pearl River, N.Y.
Previously affiliated with Equitable Advisors, CMG was founded in 1992 by Thomas Mingone and includes 12 advisors, half of whom are partners in the firm. They provide asset management and financial, retirement and estate planning for individuals, as well as corporate retirement plan services.
The deal is the first Hightower has announced in the new year, following 12 transactions in 2023, and represents the fifth “strategic investment” in a firm from an independent broker/dealer.
“Our decision to move to an RIA, from the independent broker/dealer space, was driven by our steadfast commitment to growth and serving our clients’ evolving needs,” Mingone said in a statement. “Gaining access to Hightower’s rich and robust suite of services and tools, combined with the deep knowledge and partnership within the community, will spearhead the next evolution of our business.”
Founded in 2008, Hightower is majority owned by Thomas H. Lee Partners and collectively manages about $131 billion in assets across 138 practices in 35 states and Washington, D.C. The firm has 1,700 employees and 777 advisors, according to recent federal findings.
In 2023, Hightower acquired six new partners with more than $9 billion in cumulative assets, facilitated four sub-acquisitions representing around $2 billion in transacted assets and helped to launch two new RIAs. Terms are never disclosed, but Hightower CEO Bob Oros has said strategic investments generally involve a mix of cash and equity.
Late last year, Hightower announced it was laying off 5% of its central workforce as part of a “strategic realignment.”