Aggregator HighTower Advisors is offering two new alternatives for financial advisors wanting to make the transition to independence.
HighTower is one of the fastest growing Registered Investment Advisor (RIA) aggregator firms in the country, according to InvestmentNews.
Like other aggregators that eFinancialCareers has reported about recently, the so-called HighTower Network will give financial advisors who want to exit the wirehouse channel access to HighTower's technology, investment platform and broker-dealer services, while leaving them the option of managing their own staff and handling day-to-day operations.
Another option offers advisors more autonomy:
Advisors who prefer to launch or keep their own brand but have access to HighTower's investment platform and broker-dealer services can join the HighTower Alliance.
Advisors who join either new business line will receive payouts ranging from 80% to 90% of revenues.
HighTower is a national firm with offices in New York, Chicago and San Francisco. It promises to provide information for advisors, “in strictest confidence,” about making the transition to HighTower.
“We've now covered the waterfront and any adviser can join us,” Elliot Weissbluth, chief executive officer of HighTower told a conference in Las Vegas recently.
Financial advisors themselves prompted the latest moves, said Mike Papedis, executive vice-president of business development for HighTower.
Yet another firm that has been recruiting individual financial advisors offering them administrative, compliance and other services in return for a share of their revenue stream is United Capital, which calls itself a strategic acquirer of exceptional wealth management practices.
That company has also been helping larger RIAs to grow their businesses where those advisory practices are willing to be bought out in return for a combination of cash and United Capital shares.