Dynasty Financial Partners Closes Minority Private Capital Raise

Rhea-AI Summary

Dynasty Financial Partners has successfully closed a minority capital raise to fuel its ongoing growth. The round was supported by long-standing investors, Board members, and strategic investors including The Charles Schwab , BlackRock, and J.P. Morgan Asset Management. All proceeds will be invested in enhancing Dynasty's platform to better serve its clients.

CEO Shirl Penney expressed excitement about the investment, which will enable significant improvements in technology, talent, and capabilities. The company's network consists of 58 partner firms representing over 400 advisors with over $100 billion in platform assets. Dynasty also has a $50 million unused credit facility from major banks for additional growth capital.

Chairman Harvey Golub highlighted the significance of backing from major financial institutions, viewing it as a testament to the growth of the RIA space and Dynasty's role in driving positive industry change.

Positive

• Successful minority capital raise from major financial institutions
• All proceeds to be invested in enhancing Dynasty's platform
• Network of 58 partner firms with over $100 billion in platform assets
• $50 million unused credit facility available for additional growth

Negative

• None.

Insights

Financial Analyst

This minority capital raise by Dynasty Financial Partners is a significant development in the wealth management industry. The investment from major players like BlackRock, Charles Schwab and J.P. Morgan Asset Management validates Dynasty's business model and growth potential. With over $100 billion in platform assets and 58 network partner firms, Dynasty has established itself as a key player in the RIA space. The additional capital will likely accelerate Dynasty's growth, enhance its technology platform and provide more resources for M&A support to its clients. This move could potentially disrupt traditional wealth management models and further fuel the trend towards independence in financial advisory services. The unused $50 million credit facility, combined with this new investment, significantly strengthens Dynasty's financial position, positioning it for aggressive expansion in the competitive RIA market.

Market Research Analyst

This capital raise signals a growing trend in the wealth management industry towards independent advisor models. Dynasty's platform, which supports RIAs with technology, services and capital solutions, is attracting attention from major financial institutions. This investment could lead to increased competition in the RIA space, potentially pressuring traditional wirehouses and broker-dealers. The involvement of BlackRock, Schwab and J.P. Morgan suggests these firms see value in supporting the independent advisor movement rather than solely competing against it. For investors, this trend may result in more diverse and potentially cost-effective wealth management options. The growth of platforms like Dynasty could also drive innovation in financial technology and services, benefiting both advisors and end clients. This development may prompt other wealth management firms to reassess their strategies and potentially seek similar partnerships or investments to remain competitive.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)-- Dynasty Financial Partners today announced it closed a minority capital raise to fuel its ongoing growth. Several of Dynasty’s long-standing investors and members of its Board of Directors supported the round, as well as three strategic investors, including existing investor The Charles Schwab Corporation and new investors BlackRock and J.P. Morgan Asset Management. All proceeds from the investment round will go directly into Dynasty’s business to enhance its platform which helps its clients build better businesses and take better care of their clients.

Dynasty CEO and Founder Shirl Penney said: “I could not be more excited for our clients as we continue to make significant investments in technology, talent, and capabilities to serve them better. In addition, enhancing our fortress balance sheet will allow us to provide more capital in support of our clients who are looking to grow their businesses via M&A or achieve succession planning goals. I am extremely thankful to our investors who have supported us since the early days of Dynasty, and I also want to thank BlackRock, Schwab, and JPMorgan for their support. The future is bright for Dynasty and our network of independent advisors!”

Dynasty’s network consists mostly of clients who own and operate independent registered investment advisories (RIAs) that leverage Dynasty’s integrated technology, services, robust turnkey asset management program (TAMP), digital lead generation services, capital solutions, and investment bank. This industry-leading, integrated RIA platform model provides synthetic scale that allows Dynasty-powered RIAs to be Independent But Not Alone™. Currently, Dynasty has 58 Network Partner firms representing over 400 advisors with over $100 billion in platform assets.

As previously announced, Dynasty has a $50 million unused credit facility from Citibank, Goldman Sachs Bank, J.P. Morgan, RBC Capital Markets, and UMB Bank that provides access to growth capital, in addition to its strong balance sheet.

“This investment round marks a significant milestone,” added Dynasty Chairman of the Board Harvey Golub. “To have backing and support from a roster that includes one of the largest custodians, asset managers, and banks in the world is fantastic. I feel it speaks to the remarkable growth of the RIA space and innovative companies like Dynasty who are driving positive change in the industry for financial advisors and their clients. I, along with other legacy Board members, are excited to continue to back Shirl and the leadership team as they support our growing network of independent advisors.”

Dynasty Investment Bank served as exclusive financial advisor to Dynasty Financial Partners on the transaction. Sullivan & Cromwell LLP served as the legal advisor to Dynasty Financial Partners.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $3.3 trillion, as of June 30, 2024, is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity, and liquidity. For more information: www.jpmorganassetmanagement.com.

JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $4.1 trillion in assets and $341 billion in stockholders’ equity as of June 30, 2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 35.9 million active brokerage accounts, 5.4 million workplace plan participant accounts, 1.9 million banking accounts, and $9.74 trillion in client assets as of August 31, 2024. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com

About Dynasty Financial Partners

Dynasty Financial Partners is a provider of technology-enabled wealth management solutions and business services for financial advisory firms primarily focused on serving high net worth and ultra-high net worth clients. Dynasty provides access to a comprehensive platform of software and technology tools, business services and holistic investment management capabilities through an open-architecture platform delivered via a suite of proprietary and third-party technologies. Dynasty’s technology, tools and services provide advisory firms the supported independence to launch their business, scale their operations and grow their firms — both organically and inorganically — while also allowing them to be more focused on and better equipped to serve their clients.

For more than a decade, Dynasty has championed the benefits of independent wealth management for high net worth and ultra-high net worth clients and has contributed to the movement of assets from traditional brokerage channels to the independent channels of wealth management. As Dynasty is becoming a recognized industry leader, Dynasty has differentiated itself by developing competitive strengths, including a deep understanding of and strong relationship with its clients, a comprehensive offering of services and technology-enabled solutions, the ability to leverage its size and breadth to invest, the flexibility and seamlessness enabled by a modular technology solution, the entrepreneurial culture and experienced and committed management team. Dynasty is committed to continually growing its business by facilitating existing advisory firm clients’ growth, onboarding new clients, increasing the clients’ use of its broader capabilities, launching additional solutions, and facilitating out complementary acquisitions.

For more information, please visit www.dynastyfinancialpartners.com.

Also visit Dynasty on social media:

LinkedIn: https://www.linkedin.com/company/dynasty-financial-partners

Twitter: @DynastyFP

View source version on businesswire.com: https://www.businesswire.com/news/home/20241008743980/en/

Sally Cates

sallycates@dynastyfinancialpartners.com

646-704-4500

Source: Dynasty Financial Partners

FAQ

What was the purpose of Dynasty Financial Partners' recent capital raise?

Dynasty Financial Partners closed a minority capital raise to fuel its ongoing growth and enhance its platform, which helps clients build better businesses and take better care of their clients.

Who were the key investors in Dynasty Financial Partners' capital raise?

Key investors included long-standing investors, Board members, and strategic investors such as The Charles Schwab , BlackRock, and J.P. Morgan Asset Management (JPM).

How many partner firms and advisors does Dynasty Financial Partners currently have?

Dynasty Financial Partners currently has 58 Network Partner firms representing over 400 advisors with over $100 billion in platform assets.

What additional financial resources does Dynasty Financial Partners have access to?

In addition to its strong balance sheet, Dynasty Financial Partners has a $50 million unused credit facility from major banks including Citibank, Goldman Sachs Bank, J.P. Morgan (JPM), RBC Capital Markets, and UMB Bank.