Chicago-based HighTower has made a strategic investment in Lexington Wealth Management, a Lexington, Massachusetts-based advisory group that serves entrepreneurs, executives, professionals, affluent women, high-net-worth individuals and families.
LWM, which has $1 billion in assets under advisement, focuses on helping clients navigate life events by understanding the emotional aspects of their financial decisions. The business model aligns with HighTower's mission to support advisers and empower them to help their clients achieve their wealth aspirations.
Founded in 2000 by Michael Tucci and Kristine Porcaro, LWM has 17 employees, including 11 advisers. The practice plans to grow its client base, expand through acquisitions and scale the business.
"Lexington is a progressive advisory business with a keen sense of purpose and commitment to client care. Its independent spirit and dedication to thinking differently have been keys to its success," HighTower CEO Bob Oros said in a statement. "We view the addition of LWM as a key anchor in a very attractive market. The combination of their growth orientation along with access to HighTower's scale, sophistication and capital is a powerful formula."
LWM chose to join HighTower after considering strategic partnerships with a number of other entities, including banks, private equity and wealth management firms.
"HighTower's culture, operations and capital will allow us to grow, both organically and through acquisitions, while freeing up time to deepen our client relationships, enhance our business focus and enable us to serve more clients now and in the future," said Tucci, LWM's CEO, in a statement. "We're looking forward to joining a community of nearly 100 advisory businesses across the U.S., with whom we can collaborate, share ideas and knowledge."
LWM is HighTower's 24th external RIA transaction since inception and its third in 2019. Including the LWM transaction, HighTower now has 99 advisory businesses in 33 states. HighTower advisers oversee approximately $70.3 billion in total client assets, as of June 30.
The LWM transaction follows HighTower's strategic investments earlier this year in LourdMurray and Green Square Wealth Management, and, in the last two years, WealthTrust and Salient Private Client (now HighTower Texas), including Salient Private Client's trust group.
HighTower is backed by Boston-based private equity firm Thomas H. Lee Partners, which is providing funding for the company to make strategic investments and acquisitions in the RIA space, expand the firm's services to advisors and advance growth. LWM was advised on the transaction by Raymond James and Silver Lane Advisors. The transaction is expected to close in the third quarter of 2019, subject to regulatory approvals and other customary closing conditions.