Hightower, the Chicago-based registered investment advisor, is kicking off the new year with a significant acquisition. The firm has recently purchased Capital Management Group (CMG) of New York, a highly regarded practice worth $3.3 billion. CMG has two offices located in Manhattan and Pearl River, New York.
This latest acquisition marks the continuation of Hightower's successful expansion strategy, following the announcement of 12 previous acquisitions throughout the past year.
CMG, which was established in 1992, shares a similar client service approach with Hightower. They offer a comprehensive planning model that covers various financial aspects such as tax planning, philanthropy, and estate planning.
According to Bob Oros, Hightower's Chairman and CEO, CMG has built a strong reputation for creating sophisticated financial plans and fostering long-lasting relationships with clients. Oros believes that Hightower's resources and capabilities will provide CMG with new growth opportunities by enhancing the advisor and client experiences.
This significant acquisition by Hightower is just one of many deals being announced in the wealth management industry at the start of 2024. It is worth noting that this is the third acquisition involving a practice with assets exceeding $1 billion.
CMG joins Hightower, expanding its reach in the advisory industry
CMG has recently made a significant move by joining forces with Hightower. Previously affiliated with Equitable Advisors, CMG has decided to embrace new opportunities and respond to the changing needs of their clients. Equitable Advisors declined to comment on the team's departure.
With this acquisition, Hightower continues to strengthen its position in the independent broker-dealer (IBD) channel. CMG marks the fifth practice that Hightower has successfully brought on board from this channel. In total, Hightower now boasts an impressive 138 advisory practices operating across 35 states and Washington, D.C.
CMG itself is a substantial practice, boasting a team of 38 members, including six partners who are co-owners and six other advisors. Thomas Mingone, the founder and managing partner of CMG, explains that the decision to join Hightower was driven by the rapidly changing needs of their clients. He highlights that Hightower's impressive in-house resources played a crucial role in their choice. These resources include a national trust service and a wholly owned accounting firm specializing in tax planning and preparation.
Mingone believes that gaining access to Hightower's comprehensive suite of services and tools, along with the invaluable knowledge and partnership within the Hightower community, will bring their business to the next level. Confident in their decision, Mingone states, "We are certain that we have found the perfect home for our practice."
This exciting collaboration between CMG and Hightower exemplifies both firms' commitment to providing exceptional services and innovative solutions to their clients. With this merger, both companies are poised for continued success in the ever-evolving advisory industry.