Business management

Hightower buys business management company

Hightower is expanding beyond RIAs with its M&A strategy.

The serial acquirer of RIA revealed on Tuesday that it has taken a stake in Grant Tani Barash & Altman, a Los Angeles-based business management firm. Specific financial terms of the transaction, including the size of Hightower’s stake, were not disclosed.

Business management companies help manage the financial lives of celebrities and other wealthy individuals without actually managing their underlying assets. Grant Tani Barash & Altman dropped its registration as an RIA in 2017, according to Securities and Exchange Commission records.

“Although Grant Tani Barash & Altman departs from our typical RIA investment, we like the company and believe that its philosophy of serving its clients in a comprehensive and holistic manner aligns exactly with our own approach,” said the director. General of Hightower, Bob Oros (pictured).

Hightower said advisers in its RIA offices could use Grant Tani Barash & Altman to provide business management services to their own clients.

Other RIAs and RIA investors have already considered corporate management companies as part of transactions. Most notably, Colony Group, backed by Focus Financial Partners, acquired Los Angeles-based Glass Malek LLP in 2019. Focus itself backs and used NKSFB, another Los Angeles-based business management firm, like its RIA network, for sub-acquisitions.

Chicago-based Hightower is backed by private equity firm Thomas H. Lee Partners. RIA manages approximately $117.8 billion in client assets.