Dynasty Financial Partners Closes Minority Private Capital Raise to Fuel the Growth of Its Offering to Clients
Dynasty Financial Partners has successfully completed a minority private capital raise, bringing in Abry Partners and The Charles Schwab Corporation as new investors. This round of funding, which includes additional contributions from existing investors, aims to enhance Dynasty's technology, services, and client investment solutions. The firm plans to utilize the capital for technology investments, expanding its turnkey asset management program, and attracting key talent. Dynasty also intends to pursue strategic acquisitions and liquidity for longtime shareholders. Additionally, they will withdraw their SEC Form S-1 registration statement.
- Secured minority private capital raise with Abry Partners and Schwab as investors.
- Plans to invest in technology and expand core services offering.
- Strengthening of the Dynasty Network through equity swaps.
- Access to additional growth capital via a previously closed $50 million credit facility.
- None.
SAINT PETERSURG, Fla.--(BUSINESS WIRE)--
Dynasty’s Network of clients own and operate independent RIAs that leverage Dynasty’s integrated technology, services and business solutions, robust turnkey asset management program (TAMP), and capital solutions. This integrated platform model provides synthetic scale that allows Dynasty-powered RIAs to be independent but not alone.
Dynasty intends to use some of this capital to make meaningful investments in technology and technology integrations, the addition of services to its Core Services offering, the further buildout of its TAMP and investment solutions offering, and the addition of intellectual capital and key talent. The company also plans to invest in the growth of Dynasty Capital Strategies, making further equity investments in its network of clients and making capital available for inorganic growth. The company will also explore select opportunities for corporate development and M&A that would accelerate growth, add capabilities, and increase margin in various areas of the business. A portion of the investment round will be used to fund secondary transactions to provide liquidity to long-time shareholders and founders of Dynasty.
As previously announced in September of this year, Dynasty closed a
Concurrent with this capital raise, Dynasty has executed minority equity investments in many of its RIA clients. Most of these clients received Dynasty equity in exchange for their equity in a ‘swap’ transaction. As a result, the Dynasty Network stands stronger and more aligned than ever, with many members of the network having an equity interest in the success of Dynasty and the Network.
“After evaluating the state of the public markets, our board decided to have a handful of conversations with potential private investors. Having been afforded the luxuries of optionality and time, there were two requirements that were atop my list as we went through the process – partnership and alignment,” said Dynasty’s President and CEO,
“On behalf of Dynasty’s Board of Directors, I welcome
Given the equity capital raise, Dynasty will file a request to withdraw its Registration Statement on Form S-1, initially filed with the
“When looking at the RIA space and the growing ecosystem around it, Dynasty was one of the select brands we had been following for some time. We are thrilled to have the opportunity to invest in the leading wealth technology and integrated services platform in the RIA space and are looking forward to putting all of Abry’s resources behind the growth of the firm and its clients,” said
Schwab serves as the custodian for over half of the
“As advocates for independent advisors, we are thrilled to invest in a firm that shares our values of empowering advisors with the technology, tools, and resources they need to build even stronger businesses. We could not be more excited for the ongoing growth that is occurring in the RIA ecosystem and are proud to be leaders in the space,” said
Dynasty will continue to grow its relationships with other strategic partners in the space, including the other major custodians serving the RIA ecosystem.
“At a time when many businesses in the space are forced to hunker down and play defense, dragged down by leverage and rising interest rates, Dynasty is positioned to charge onto the offensive with fresh, friendly capital, a fortress balance sheet, and favorable margins. Despite market volatility, the ‘Era of Independence’ continues to experience tailwinds as Dynasty positions to invest and continue executing on behalf of its clients and investors,” added
About
About Charles Schwab
About Dynasty
Dynasty 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. Dynasty’s platform and offering have won multiple awards in recent years.
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 carrying out complementary acquisitions.
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