September 7, 2021
Hightower has bought a stake in an Arlington, Virginia registered funding advisory agency managing $1.5 billion in consumer property, in line with a Tuesday announcement from the Chicago-based serial RIA acquirer.
Alexandria Capital, led by Chief Government Augustine Hong and Chief Funding Officer Jonathan Ferguson, is a 21-employee agency with 10 advisors on its bench. The agency additionally has places of work in New York Metropolis, Boston, Portland, Oregon, and Juneau, Alaska, and the deal is anticipated to shut within the fourth quarter, in line with a launch.
The RIA acquirer paid a mixture of money and fairness for its stake in Alexandria Capital, in line with a Hightower spokeswoman who declined to offer particulars of the value or share of the agency Hightower would personal.
Hightower has added north of $13.three billion in consumer property through six introduced transactions to this point in 2021. After three January bulletins, the agency in July added Farr, Miller & Washington, a $2 billion-AUM apply in Washington, D.C., and final month, $800 million-AUM Funding Safety Group in Denver.
Based in 1987, Alexandria Capital grew from $108 million in consumer property in 2010 to $1.5 billion over the following decade, pushed largely by its 2017 merger with FIC Capital to create a roughly $1 billion-AUM agency, in line with an announcement on the time.
Hong and Ferguson, together with different Alexandria Capital principals Larry Waterhouse and Steven Park, had been drawn to Hightower by its providing of further assist for operations, different investments, advertising, enterprise improvement, and nationwide belief companies, in line with the announcement.
“Becoming a member of Hightower will amplify our potential to ship the companies that purchasers worth most and provides us a variety of capabilities that may be tough to place in place on our personal,” Ferguson stated in a ready assertion.
Hightower, which has 117 groups and $101 billion in consumer property, has been an aggressive acquirer of RIA companies because it shifted its focus from its founding technique of recruiting wirehouse brokers in 2019. The agency, led by Chief Government Bob Oros, closed offers for 9 practices final yr.
Personal fairness agency Thomas H. Lee Companions took a majority stake in Hightower in 2018, and in December of 2020, Hightower introduced a further money infusion with investments from funds suggested by Goldman Sachs Asset Administration, Neuberger Berman and Coller Capital.
Hightower final month introduced it had doubled its AUM over two-and-a-half years, fueled partially by 17 acquisitions, which additionally helped the agency roughly double its worker depend to 1,120 from 530 in early 2019.