In its largest acquisition ever, Chicago-based aggregator Hightower hit the deck running in 2021 with the purchase of Bel Air Investment Advisors, an $8 billion wealth management firm based in Los Angeles.
Specific terms of the deal were not disclosed, but Hightower is buying Bel Air from Fiera Capital Corp., a Montreal, Canada-based investment management firm that is spinning off its wealth management business.
Fiera also announced the sale of New York-based Wilkinson Global Asset Management, which has $3.3 billion in client assets, to Wilkinson Capital Partners.
"After thorough strategic review of our private wealth operations in the U.S. and in light of the evolution of our private wealth business model, we elected to divest Bel Air and WGAM, two high quality businesses," Jean-Guy Desjardins, chairman of the board and chief executive, said in a prepared statement.
"These transactions are also a testament to our commitment to create value for our shareholders through disciplined capital allocation, which remains a key strategic priority for us," Desjardins said.
Bel Air, which has 43 employees, including 10 financial advisers, works exclusively with “ultra-high-net-worth individuals, families, trusts and foundations with $20 million or more in investable assets.”
“We are honored to be welcoming Bel Air to Hightower and look forward to collaborating with the team and providing access to our strategic consulting services, which focus on organic growth and talent development, as well as offering additional scale through our middle- and back-office capabilities,” Hightower Chief Executive Bob Oros said in a prepared statement.
Bel Air chairman Todd Morgan said the search for a buyer involved meeting with several companies.
"We picked Bob and his organization because we like them and trust them," Morgan said.
Bel Air was founded in 1997 and in 2013 was acquired by Montreal-based Fiera Capital, a publicly traded company. Bel Air’s move to Hightower returns the firm to private ownership, with Bel Air’s founders and leaders in key roles with equity in the company.
When Fiera acquired Bel Air in 2013, the advisory firm advised on $7.3 billion. Morgan explained that the current asset level of $8 billion is due to $1 billion leaving with a team about four months ago.
Fiera will receive the proceeds related to the sale of Bel Air upon closing, which is expected to occur in the first quarter, subject to customary closing conditions.
With regards to WGAM, Fiera has entered into a multiyear financing agreement, so it will receive the proceeds from this sale over time.
Including Bel Air, Hightower’s M&A team has completed 14 transactions since early 2019.
As of Sept. 30, Hightower’s assets under administration were approximately $81.4 billion and its assets under management totaled $61.6 billion. Hightower has 114 advisory businesses in 33 states.
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