The mergers and acquisitions trend in the North American wealth management rolls on, even though the pandemic has inevitably affected speed and volume of transactions. The latest example further expands Hightower's AuM and network.

US-based Hightower has made a strategic investment in Frontier Investment Management, a Dallas-based wealth advisory business with nine offices across the US. The financial size of the stake wasn’t disclosed.

Including this transaction, Hightower’s third in 2020, the company now has 108 advisory businesses in 33 states. As of June 30, 2020, Hightower’s assets under administration were about $75.7 billion and its AuM was $56.7 billion. The deal, in which Frontier was advised by Cambridge International Partners, is expected to close in the third quarter of 2020, subject to regulatory approvals and other customary closing conditions.

Founded in 1994, Frontier has three offices in Texas – Dallas, Houston and Austin – as well as offices in New Orleans, Louisiana, Denver, Colorado, San Ramon,  San Diego, California, Scottsdale, Arizona, and St Petersburg, Florida. Led by principals Brian Hattendorf, Richard Sowden and Gary Schoen, Frontier has 42 employees, including 35 who work directly with clients in an advisory capacity.

As of June 30, 2020, Frontier had $3.3 billion in assets under management (AuM).

“At a time of significant consolidation and change in the industry, Hightower’s intellectual capital and institutional-quality infrastructure will give us the ability to nurture our next generation of leaders, expand our reach, and scale our business to benefit our clients, partners and team members,” Hattendorf said.

The deal comes at a time when, while the COVID-19 pandemic may have delayed or reduced the volume of M&A in wealth management, it hasn’t stopped it. (See figures from ECHELON Partners). Industry figures who have talked to this news service recently say trends remain strong, such as a need for scale to cope with regulatory costs and client demands, and from sellers, a desire for retiring owners to exit and refocus capital elsewhere.

Frontier said it picked Chicago-based Hightower out of a total of nine potential suitors.

“Hightower’s entrepreneurial culture was a great fit for us. Their willingness to embrace our brand, team and legacy were key factors in our decision to join the company,” Frontier’s Sowden said.