Hightower

# HighTower: A Technology Company Overview

HighTower is a national financial services company that operates as both an advisor-owned firm and a technology platform provider for wealth management professionals.[2] The company serves high-net-worth and institutional clients through a network of independent financial advisors while simultaneously developing sophisticated technology infrastructure to support their operations.

High-Level Overview

HighTower functions as a dually-registered, multi-custodial financial services firm headquartered in Chicago with corporate centers in New York and San Francisco.[2] The company's core mission centers on providing independent financial advisors with an integrated technology platform and access to diverse investment products without conflicts of interest. Rather than pushing proprietary investments, HighTower's philosophy emphasizes delivering "an independent and unobstructed view of the markets" to advisors and their clients.[2]

The company operates approximately 130 independent practices under a single broker-dealer structure, making it fundamentally different from traditional financial services firms.[3] Its technology platform—the HighTower Open Source Technology (HOST) platform—delivers access to industry-leading investment products, tools, research, and services while providing direct access to multiple custodians and clearing firms.[2]

Origin Story

HighTower was founded approximately 15 years before 2023 (around 2008) and emerged from a distinctive philosophy: building technology specifically designed by advisors for advisors.[2][3] The company's founding reflected a recognition that existing financial services platforms were not adequately serving the needs of independent wealth management practices. Rather than adopting off-the-shelf solutions, HighTower's leadership made the strategic decision to build much of its technology infrastructure from scratch, starting with a deep understanding of their primary client—the independent financial advisor.[3]

A pivotal moment in the company's evolution came when leadership recognized the importance of ecosystem integration. They negotiated enterprise agreements with major custody and clearing firms, creating what was described as "the nearly impossible first" achievement: fully integrating an RIA (Registered Investment Advisor) and broker-dealer while maintaining multi-custodial flexibility.[2]

Core Differentiators

HighTower's competitive advantages center on its technology-first approach and structural independence:

• Custom-built platform architecture: Rather than relying on vendor solutions, HighTower developed proprietary systems tailored to advisor workflows, including a visual drag-and-drop workflow management system that simplifies task management beyond standard CRM capabilities.[3]

• Multi-custodial flexibility: The firm negotiated direct relationships with multiple custodians and clearing firms, eliminating the conflicts of interest inherent in single-custodian models and giving advisors genuine choice in investment solutions.[2]

• Integrated RIA-broker-dealer model: HighTower uniquely combines both regulatory registrations under one operating structure, enabling seamless service delivery without the fragmentation typical in the industry.[2]

• Advisor-owned governance: The firm's structure as an advisor-owned company aligns incentives with the independent practices it serves, rather than prioritizing external shareholders.[2]

• Data integration focus: The company prioritized integrating data across platforms rather than passing data between siloed systems, with strategic partnerships (notably Salesforce) to maintain ecosystem compatibility.[3]

Role in the Broader Tech Landscape

HighTower represents a broader trend toward technology-enabled independence in wealth management. As traditional financial institutions consolidate and push proprietary products, HighTower has positioned itself as an alternative infrastructure layer for advisors seeking to maintain independence while accessing institutional-grade technology.

The company's emphasis on AI and machine learning development signals alignment with industry-wide trends toward automation and data-driven decision-making in financial services.[4] This positions HighTower to benefit from the broader capital expenditure wave in AI infrastructure that is reshaping financial technology.

Quick Take & Future Outlook

HighTower's trajectory suggests continued expansion as a technology-enabled platform for independent wealth management. The firm's investment in emerging technologies and machine learning capabilities indicates preparation for an AI-integrated future in financial advisory services. As wealth management increasingly demands sophisticated technology infrastructure, HighTower's advisor-owned model and custom platform approach provide competitive advantages against both traditional incumbents and newer fintech entrants.

The company's success ultimately depends on its ability to continuously innovate its platform while maintaining the independence and flexibility that attracted advisors in the first place—a balance that has defined its strategy since inception.