CHICAGO, April 13,
2017 /PRNewswire/ -- HighTower announces its intent to acquire
WealthTrust, which includes $6.4 billion in client assets nationwide.
"This is a
transformational transaction for HighTower. Ten years ago, we founded this
company upon our core belief that the fiduciary approach is the best for
clients—and the best for business," said HighTower CEO Elliot
Weissbluth. "We are proof that the fiduciary standard is the
future of financial services."
HighTower financed the
cash-only acquisition through a $75 million expansion of its credit
facility to $245 million, led by BMO Harris and lenders Regions Bank,
Fifth Third Bank and KeyBank.
"Our new facility will
allow HighTower to fund additional acquisitions and drive greater momentum in
the marketplace," said Sagar C. Kurada, Chief Financial Officer, HighTower.
"HighTower's visionary
business model, rapid growth trajectory and significant financial strength make
it the best buyer to service and grow WealthTrust," said Mark
Gormley, Partner, Lee Equity Partners. "We proudly support HighTower
in its mission to make the fiduciary standard a universal element of wealth
management," he added.
Following the WealthTrust
acquisition, about 40% of HighTower teams will originate from Registered
Investment Advisor (RIA) backgrounds—either as previously independent teams
acquired by HighTower or as independent RIAs leveraging HighTower's platform of
services.
"No matter what a team's
origin is, or how they elect to affiliate with HighTower, we deliver the
comprehensive support they need to serve their clients who trust them for vital
financial guidance," added HighTower Executive Vice
President Matthias Kuhlmey. "The WealthTrust acquisition
illustrates the strategic evolution of our business model and rapid growth
fueled by advisor demand for the HighTower platform, brand and culture."
Kuhlmey led the WealthTrust
transaction for HighTower and plays a critical role in all acquisitions. Over
the past 18 months, he led 6 RIA acquisitions for the firm. He previously
served as the Head of Global Investment Solutions, spearheading the development
of HighTower's sophisticated investment and research platform.