Hightower has taken a stake in the Denver-based Dechtman Wealth Management, a financial planning firm with $800 million in client assets. It is Hightower’s sixth strategic investment of the year.
Dechtman Wealth is a team of eight led by three partners/wealth managers, including founder Jordan Dechtman and his sons Sam and Adam Dechtman. The firm focuses on financial guidance, retirement income, tax and estate planning.
The terms of the deal between Hightower and Dechtman (including the size of the stake) were not disclosed. According to Jordan Dechtman, joining Hightower will help the firm access a “host of additional tools and services” to help its clients.
“We operate on four basic principles—always do what is best for the client, provide a straight-forward cost, have transparent communication and treat clients with care and respect,” he said.
Chicago-based Hightower works with firms in 35 states and Washington, D.C. Private equity firm Thomas E. Lee Partners owns Hightower; in May, WealthManagement.com reported that the PE firm took it off the market because it didn’t get the price it wanted from potential buyers.
Advisor groups partnering with the firm get tools for boosting organic growth, including consulting, marketing support, tech and investment management resources, and back-office needs like compliance, accounting and payroll. The firms also get assistance with inorganic growth strategies, including deal structuring, due diligence and capital for M&A.
In October, Hightower acquired a majority stake in NEPC, an institutional consulting firm and outsourced chief investment officer that brought institutional research and investment capabilities in-house for Hightower advisors.
Hightower expected to keep NEPC’s executive team and investment process intact, with NEPC Managing Partner Mike Manning joining Hightower’s board of directors. Hightower said the deal would help private wealth investors interested in “allocations to private market investments.”
Additionally, in the past several months, Hightower has made strategic investments in Charles D. Hyman & Company, a registered investment advisor in Ponte Verda Beach, Fla., with $2.3 billion in client assets, and Financial Planning and Information Services, a $1.1 billion RIA based in De Pere, Wis.
In recent months, Hightower’s also been waging a legal battle with Lars Knudsen, a former advisor who claimed the firm “hijacks” the books of business of advisors like himself before pushing those employees out, as Knudsen claims happened to him.
Hightower brought (and subsequently dropped) litigation against Knudsen, claiming he broke his non-solicitation vows after he was fired. Knudsen claimed the firm did so days before a federal judge was likely to rule against them.
However, last month, Hightower sued the Wash.-based RIA where Knudsen went to work, arguing the firm conspired with Knudsen to steal confidential Hightower information, which has cost the firm $150 million in client assets.