Press Releases

CHICAGO and BOSTON, October 21, 2024 – Hightower Holding today announced that it will acquire a majority interest in NEPC, LLC (“NEPC”), a leading investment consultant and outsourced chief investment officer (“OCIO”). Combining under a common parent company will allow each organization, NEPC and Hightower Advisors (“Hightower”), one of the country’s leading RIAs, to expand their commitments to clients to deliver institutional-quality investment solutions and research-driven advice.

As more private wealth investors express interest in allocations to private market investments, NEPC’s institutional research and investment capabilities will bolster Hightower’s existing set of wealth management solutions for its advisors and their clients. With this transaction, NEPC’s clients will continue to receive investment advisory and OCIO services while creating a new growth channel in partnership with Hightower. A combined Hightower and NEPC strategically positions both firms across their target markets and adds scale and resilience. The combination of Hightower, its affiliates, and NEPC represents over $1.8T in AUA and $258B in AUM.

Similar to previous Hightower Holding investments, NEPC is expected to retain its culture, executive team, and investment process, ensuring no disruption to its existing business operations and client service. Additional enhancements to both organizations’ offerings will create new opportunities for NEPC to serve the private wealth channel. As part of the transaction, NEPC Managing Partner Mike Manning will join the Hightower Board of Directors upon closing.

“This is a transformational combination that highlights the future of financial services and wealth management. Our relationship with NEPC stemmed from the exciting and distinctive opportunity that both businesses can offer the private wealth market when combined,” said Bob Oros, Chairman & CEO at Hightower Holding. “We create a stronger whole by maintaining our company identities and deploying our strengths together. In partnership with NEPC, Hightower advisor practices will have expanded access to investment management solutions, research capabilities, and a compelling set of investment opportunities. We are excited to embark on this journey alongside NEPC and support their future growth in their current markets and new ones.”

“Since NEPC’s founding, our top priority has been to provide clients with pioneering investment solutions and consulting,” said Michael Manning, Managing Partner at NEPC. “Today’s announcement is a continuation of this commitment. Hightower represents the ideal partner for us, as we leverage the strong growth of our current clients and continue our expansion into the private wealth market, all while preserving the strong culture and investment solutions that our clients trust and rely upon. We are confident that our firm is strategically positioned for the future alongside Hightower, enabling us to deliver conviction and quality counsel to assist our clients in achieving their optimal outcomes.”

In the transaction, NEPC was advised by Moelis & Company LLC and Goodwin Proctor, LLP provided legal counsel. Hightower Holding engaged Berkshire Global Advisors to provide industry research on the institutional investment consulting and OCIO industry and Kirkland & Ellis, LLP provided legal counsel.

About NEPC, LLC

BOSTON–MARCH 5, 2024–(BUSINESS WIRE)–NEPC, LLC, one of the country’s largest research-driven investment consultants and OCIO providers, today published the 18th annual edition of its Defined Contribution (DC) Plan Trends and Fee Survey, which examines current plan investment trends, features, and innovations across major sectors, and how these plans have evolved over the years. Respondents to the 2023 survey include 128 clients representing $259 billion in aggregate assets and 2.6 million plan participants.

This year’s data shows that the tools needed to solve the “retirement crisis” already exist, with 86% of respondents currently offering their participants a retirement income solution — most often in the form of a Target Date Fund (TDF) paired with systematic distribution. The survey also highlights:

• An older contingency of plan participants than previously imagined, with 53% of participants over the age of 65 contributing to a TDF.
• Close to 30% of plans have less than 10 core options, and that group is growing since TDFs represent 47% of plan assets.

“Our job as retirement consultants is to maximize the solutions that work for the most people and operate around the margins,” says Emma O’Brien, a principal on NEPC’s DC team. “The data shows that, contrary to the media’s perception, we don’t need to reinvent the wheel because Target Date Funds work.”

The high demand for TDFs pushes plan sponsors to be purposeful with their offerings, leading to a decline in core options. The survey suggests that clients want to unshackle themselves from having 15-20 options as the role of a core lineup is becoming less important, freeing up the opportunity to lower fees.

“TDFs are built to support retirement income drawdown,” O’Brien says. “We’re making progress instead of adding to the noise.”

This year’s survey also revealed that fees for managed accounts have dropped more than 10% over the past year, due to an increase in lower cost providers, who are challenging established managed account providers on fees. Managed Accounts can add value for participants and aid in solving the retirement crisis when handled correctly.

“Fees have come down because we are actively pushing for lower costs,” says Bill Ryan, partner and head of NEPC’s DC team. “As a team, we have spent a lot of time educating clients on the role of managed accounts, what personalization means, and what level of personalization is right for them. All of those discussions have pointed to fees, negotiated or not, being too high.”

NEPC’s Defined Contribution (DC) Practice team will discuss the survey’s findings during a webinar on March 5, 2024. Those interested in hearing how DC consultants are advising plans to address emerging opportunities can register for the webinar here.

The 18th Annual Defined Contribution (DC) Plan Trends and Fee Survey results can be downloaded here.

About NEPC, LLC

NEPC is an independent investment consultant, private wealth advisor, and OCIO provider serving over 400 retainer clients and $1.6 trillion in total assets. Combining a proprietary research team dedicated to the long-term challenges facing investors with our unique client-centric model, NEPC builds forward-looking investment portfolios for institutional investors and ultra-high-net-worth families. To learn more about NEPC, visit nepc.com.

Media Contact:
Emma Rayder
[email protected]

BOSTON–February 27, 2024—NEPC, LLC, one of the industry’s largest independent, investment research-driven consulting firms, today announced the official opening of its London office, underscoring the firm’s commitment to providing global strategies and solutions to portfolios. Larissa Davy, Senior Investment Director of Real Assets, will lead NEPC’s regional efforts.

“NEPC’s expansion into London reflects our unwavering commitment to delivering innovative solutions and exceptional service to our clients,” said Larissa Davy, Senior Investment Director of Real Assets. “By establishing a physical presence in Europe, we aim to deepen our understanding of global markets and provide tailored strategies that align with our clients’ long-term objectives.”

In alignment with NEPC’s mission to foster global connectivity and empower its teams, Tim McCusker, Chief Investment Officer, emphasizes the importance of this expansion. “Our presence in London enables us to engage directly with investment managers and gain valuable insights into diverse investment perspectives,” McCusker stated. “This initiative highlights NEPC’s dedication to excellence and reinforces our position as a trusted partner in the investment community.”

2023 was a year of strong growth for NEPC and its client portfolios. Looking ahead into 2024 and beyond, NEPC’s mission remains focused on fostering deep connections with the global investment manager and allocator communities, ultimately positioning teams across the firm to be better investors with access to better solutions for clients.

About NEPC, LLC

NEPC is an independent investment consultant, private wealth advisor, and OCIO provider serving over 400 retainer clients and $1.6 trillion in total assets. Combining a proprietary research team dedicated to the long-term challenges facing investors with our unique client-centric model, NEPC builds forward-looking investment portfolios for institutional investors and ultra-high-net-worth families. To learn more about NEPC, visit nepc.com.

Media Contact:
Laura Nascimento
[email protected]

BOSTON–December 6, 2023—NEPC, LLC one of the industry’s largest independent, research-driven investment consulting firms, today announced the election of six new partners and the promotion of five new principals across the firm. These new elections and promotions will be effective January 1, 2024.

2023 has seen strong growth for NEPC and its client portfolios. These new promotions highlight NEPC’s commitment to cultivating an experienced team across the firm that clients can trust will help them achieve their long-term goals.

“NEPC takes immense pride in nurturing and empowering our exceptional talent,” said Michael Manning, Managing Partner of NEPC. “It’s an honor to watch our team grow within the firm and also to bring in fresh perspectives.

The newly elected Partners are:

• Rick Ciccione, Senior Consultant
• Rose Dean, CFA, Senior Consultant
• Oliver Fadly, Head of Private Debt Investments
• Joe Nankof, ASA, Senior Consultant
• Deirdre Robert, CFA, CAIA, Senior Consultant
• Daniel Runnals, CFA, CAIA, Senior Consultant

NEPC’s new Principals are:

• David Barnes, CFA, CAIA, Senior Consultant
• Peggy Boraks, Senior Controller
• Aaron Chastain, CFA, Senior Consultant
• Nick Mann, Senior Investment Director, Private Markets
• Emma O’Brien, Senior Consultant

Manning also stated, “These well-deserved appointments are a testament to our culture and core beliefs of elevating the experience and value we bring to the table to provide our clients with best-in-class solutions.”

For more information on NEPC’s employee workforce and to explore open opportunities, click here.

About NEPC, LLC

NEPC is an independent investment consultant, private wealth advisor, and OCIO provider serving over 400 retainer clients and $1.6 trillion in total assets. Combining a proprietary research team dedicated to the long-term challenges facing investors with our unique client-centric model, NEPC builds forward-looking investment portfolios for institutional investors and ultra-high-net-worth individuals. To learn more about NEPC, visit nepc.com.

Media Contact:

Laura Nascimento

[email protected]

BOSTON–NOVEMBER 9, 2023–(BUSINESS WIRE)–NEPC, LLC, one of the country’s largest research-driven investment consultants and OCIO providers, today published the 11th annual edition of its Defined Benefit (DB) Trends Survey, which examines funded status (“F/S”), forward-looking expected return on assets (EROA), and shifts in investor sentiment. Respondents to the 2023 survey included 51 corporate and healthcare organizations with the majority of plans ranging in size from $100 million to over $3 billion.

This year’s data showcases that 53% of respondents have a bearish view of markets over the next 12 months. Respondent sentiment demonstrates a full reversal from the results of the 2021 survey, where (56%) of respondents were bullish and 44% of respondents were bearish.  NEPC noted that clients are more focused on their funded status position rather than their portfolio’s absolute return amidst this period of macroeconomic market volatility.

“It pays to be a saver. Higher rates and higher inflation are typically good news for funded status and frozen plans as higher discount rates reduce the value of liabilities. While equity valuations are down, forward-looking return assumptions (especially for fixed income investments) fare better,” said Jake Mallinson, Consultant on NEPC’s Defined Benefit team. “Armed with an understanding of the proactive drivers of volatility, NEPC has been working with clients to pull on different levers, such as maintaining a disciplined hedging strategy, to ensure plan sponsors are best able to navigate sustained volatility.”

NEPC’s 2023 survey results also show the continued climb in funded status among DB plans. 74% of plans in the 2023 Survey reported a funded status above 90%, a noticeable increase from 2021, where only 63% of plans were above 90% funded. Large plans (over $1B) reported better funded status than small plans (under $1B). 65% of large plans reported a F/S of over 100% while only 23% of small plans reported a similar status.

“Total DB pension assets are dropping due the Feds efforts to combat inflation.  Meanwhile, discount rates are also rising, and plans’ funded statuses are increasing as interest rates are going up. Environments like this demonstrate why liability driven investments work, especially as a risk management tool,” said Brad Smith, Partner on NEPC’s Defined Benefit team. “NEPC continues to advise plan sponsors to utilize glide paths and take action to further “de-risk” plans.”

Other key trends highlighted in NEPC’s new survey:

• There seems to be a shift to allocating more assets to LDI from prior years. On average, respondents had 41% of assets allocated to LDI compared to survey results in 2021 where only 30% of assets were allocated to LDI.
• Forward-looking Expected Return on Assets (EROA) reversed course and are trending higher than in previous surveys. 71% of plans indicated they had an EROA of 6% or higher in 2023, a significant jump from NEPC’s most recent data in 2021, where only 52% of plans had an EROA of 6% or higher.
• Respondents still fear a slowdown in global growth is imminent as 42% of respondents selected this as their greatest threat to their investment programs this year.
• 40% of respondents expect Pension Discount Rates to remain the same level over the next year. However, 32% of respondents expect Pension Discount Rates to fall during that same time period, which is surprising given the Fed has stiffened its stance around staying committed to a more hawkish monetary policy going forward.

The Defined Benefit (DB) Trends Survey results can be downloaded here.

About NEPC, LLC

NEPC is an independent investment consultant, private wealth advisor, and OCIO provider serving over 400 retainer clients and $1.4 trillion in total assets. Combining a proprietary research team dedicated to the long-term challenges facing investors with our unique client-centric model, NEPC builds forward-looking investment portfolios for institutional investors and ultra-high-net-worth individuals. To learn more about NEPC, visit nepc.com.

Media Contact:

Emma Rayder

[email protected]

BOSTON–(BUSINESS WIRE)– NEPC, a leading research-driven investment consultant and OCIO provider with $1.4 trillion in assets under advisement, today announced that Rose Dean, CFA, has joined the firm as Senior Consultant and Principal, effective April 3, 2023. This announcement is part of NEPC’s strategic expansion of its West Coast and Midwest presence.

With over 21 years of industry experience, Dean advised state-level public pension funds, foundations, and corporate DB/DC plans with assets totaling over $600 billion as a general consultant. Dean brings deep investment acumen and experience to her new role and will report directly to Kevin Leonard, Partner, and leader of NEPC’s Public Funds Team.

“We are thrilled to have Rose join our team,” said Leonard. “As we continue to help clients navigate a complicated investment landscape, I know that Rose’s institutional experience and ability to build strong client relationships will help us continue building enduring and innovative investment programs tailored to our clients’ unique financial goals and constraints.”

Dean joins NEPC from Wilshire Advisors, where she most recently served as Managing Director. In that role, she led multiple asset owner relationships for non-discretionary and discretionary investment portfolio advisory services. She also served on Wilshire’s Fixed Income/LDI, Private Equity/Credit, and Diverse‐Owned Manager Committees. Prior to joining Wilshire, Dean ran a start‐up alternative investment consulting business, advising on opportunities focused on private credit and asset‐based loan portfolios. Her experience also includes trading fixed income at Citigroup and conducting hedge fund manager research at Harcourt.

“I’m excited to join an industry leader such as NEPC, and to work alongside a dynamic team to strengthen our West Coast and Midwest presence as we continue to build on our already strong foundation.”

To learn more about NEPC, click here.

ABOUT NEPC, LLC

NEPC is an independent investment consultant, private wealth advisor, and OCIO provider serving over 400 retainer clients and $1.4 trillion in total assets. Combining a proprietary research team dedicated to the long-term challenges facing investors with our unique client-centric model, NEPC builds forward-looking investment portfolios for institutional investors and ultra-high-net worth individuals. To learn more about NEPC, visit nepc.com.

Contact:

Laura Nascimento
[email protected]