Baird, an employee-owned, a multinational independent investment bank and financial services company headquartered in Milwaukee, Wis., has agreed to acquire Pittsburgh-based Hefren-Tillotson, a privately held wealth management firm with more than $18 billion in client assets, the companies said in a recent news release.
Financial details of the transaction, which is expected to close in June, were not disclosed.
Established in 1948, Hefren-Tillotson has over 90 financial advisors operating from six offices in Greater Pittsburgh. The firm offers investment and retirement plan management, comprehensive financial planning, and other financial services. According to Kim Tillotson Fleming, Hefren-Tillotson chairman & CEO, cultural compatibility and a similar approach to client wealth management were the key ingredients to the deal’s success.
“Our two firms have long respected and admired each other,” she said in the news release. “On every level, Baird embodies the same culture and values that have always defined our firm. Like Baird, being privately held has allowed us to stay focused on what matters most – our clients and our associates. When thinking about the future legacy of our family and employee-owned business and name, we cannot imagine a better partner than Baird.”
Baird Chairman, President & CEO Steve Booth indicated that the sentiment was mutual.
“We have known and had the highest regard for Hefren-Tillotson and their leadership team for years,” he said in the news release. “Not only do they have a stellar reputation, but the similarities between our two firms are remarkable – a strong, client-first culture and business model, a commitment to being a great place to work, and a tradition of giving back to the community. Hefren-Tillotson is an incredibly high-caliber firm, and we are looking forward to continuing our partnership long into the future.”
Large or small, long-established or recently-founded, that high regard must be earned, according to a February 7th email in which Erik Dahlberg, president of Baird's Private Wealth Management business, responded for further comment.
“Simply put, we believe cultural compatibility is the most important factor in bringing two firms together,” he said. “As long as both of our firms have been in business – Hefren-Tillotson for nearly 75 years and Baird for more than a century – we’ve had an unwavering focus on doing what is best for our clients. We are extremely pleased to have again found a partner that shares our same values and commitments.’
Baird’s strategy for the firm’s future inorganic growth is dependent upon following a tried and true formula for each acquisition’s success: finding the right partner, Dahlberg said in the email.
“Following the resounding success of Baird’s merger wth Hilliard Lyons three years ago, our focus in 2022 will be in the successful integration of Hefren-Tillotson into Baird,” he said.
In 2019, Hilliard Lyons Trust Company, along with Hilliard Lyons, both headquartered in Louisville, Ken., became a wholly-owned subsidiary of Baird. In September 2021, Baird announced that the new subsidiary had been renamed Baird Trust Company, effective immediately.
“We realize how fortunate we are to have found two tremendous partners in sucg a short period of time, which is no easy feat,” Dahlberg continued in the emai. “With that said, Baird’s independent, employee-owned model enables us to remain open to exploring potential strategic investments with the right partner to enhance our capabilities for clients and expand our footprint.”
Under terms of the M&A deal with Baird, Hefren-Tillotson’s leadership team of Kim Tillotson Fleming, Craig Tillotson and Don Belt will continue in their current roles through the merger, working closely with Baird’s Private Wealth Management leadership team to ensure a smooth transition for the firm and its clients.
Once Hefren-Tillotson is fully integrated into Baird by October, the news release reported, Fleming will serve as a vice chair of Baird and as a member of Baird’s Executive Committee, while Tillotson will serve as managing director and branch manager. Both Fleming and Tillotson will also continue to serve as financial advisors. Belt will become managing director and director of operations and integration.
All three Hefren-Tillotson C-Suite leaders will continue to remain very active in the Pittsburgh community as leaders at Baird, the release said.
Established in 1919 as Robert W. Baird & Co., Baird has more than 1,300 financial advisors in its Private Wealth Management business serving clients coast-to-coast from over 160 locations in 33 states. The company surpassed $400 billion in client assets at the end of 2021.
