Innovative Growth: Dynasty Financial Partners Secures New Capital

Dynasty Financial Partners Strengthens Growth Potential

Recently, Dynasty Financial Partners has made a significant move by closing a minority capital raise aimed at boosting its growth trajectory. This strategic funding round saw participation from long-standing investors and members of the Board of Directors, along with three key strategic investors: The Charles Schwab Corporation, BlackRock, and J.P. Morgan Asset Management. The capital generated from this initiative will be directly reinvested into enhancing Dynasty’s operational platform, which is designed to empower its clients in building superior businesses while ensuring their clients receive exceptional care.

CEO Shirl Penney's Vision

Shirl Penney, the CEO and founder of Dynasty, expressed immense enthusiasm regarding the implications of this capital raise for the company’s operations. He stated that this influx of funds will facilitate significant improvements across technology, talent acquisition, and service capabilities. This will enable Dynasty to efficiently support clients striving for growth through mergers and acquisitions or those with succession planning objectives. Penney also expressed heartfelt gratitude to early investors and warmly welcomed the new partners like BlackRock, Schwab, and J.P. Morgan, anticipating a bright future for Dynasty and its expanding network of independent advisors.

Broadening the Network of Independent Advisors

The clientele of Dynasty is primarily comprised of independent registered investment advisors (RIAs) who leverage the comprehensive suite of integrated technology, services, and innovative solutions offered by Dynasty. This unique combination allows RIAs to operate under the motto of being Independent But Not Alone™. Currently, Dynasty boasts a network of 58 partner firms that collectively represent over 400 advisors managing upwards of $100 billion in platform assets.

Robust Financial Backing

In addition to the recent capital raise, Dynasty previously secured a $50 million unused credit facility from esteemed financial institutions including Citibank, Goldman Sachs Bank, J.P. Morgan, RBC Capital Markets, and UMB Bank. This facility not only enhances their access to growth capital but also fortifies the already strong balance sheet of the firm.

Industry Milestone and Positive Outlook

Harry Golub, the Chairman of the Board at Dynasty, asserted that this investment round marks a pivotal milestone for the company. He underscored that having such formidable backing from leading custodians, asset managers, and banks indicates the burgeoning growth of the RIA sector and highlights the innovative trajectory of Dynasty in reshaping the financial advisory landscape. Golub, along with other legacy board members, expressed their eagerness to continue supporting Penney and the leadership team in the cruising path towards growth.

Dynasty Investment Bank acted as the exclusive financial advisor for this transaction, while Sullivan & Cromwell LLP served as the legal advisor.

About Dynasty Financial Partners

Dynasty Financial Partners is recognized for its pioneering technology-enabled wealth management solutions and comprehensive business services for advisory firms targeting high net worth and ultra-high net worth clients. By offering a versatile platform filled with a variety of proprietary and third-party technologies, Dynasty empowers advisory firms to launch and grow their businesses with unparalleled independence and focus on serving their clients effectively.

Over the past decade, Dynasty has been instrumental in advocating for the merits of independent wealth management and has played a vital role in steering assets from traditional brokerage channels toward more independent wealth management pathways. As Dynasty carves out its space as an industry frontrunner, its competitive advantages are evident. These include a profound understanding of its clientele, a diverse range of services and technology solutions, a capacity to invest strategically, along with a seamless modular technology platform.

Dynasty remains committed to fostering growth by nurturing existing advisory clients, onboarding new firms, expanding service utilization, launching innovative solutions, and facilitating strategic acquisitions.

Frequently Asked Questions

What recent development occurred at Dynasty Financial Partners?

Dynasty Financial Partners successfully closed a minority capital raise to support its growth initiatives.

Who are the key investors involved in this capital raise?

Key investors include The Charles Schwab Corporation, BlackRock, and J.P. Morgan Asset Management.

How will the raised capital be utilized?

The funds will enhance Dynasty's platform to better support its clients in building and managing their businesses.

What is the current status of Dynasty's client network?

Dynasty's network consists of 58 partner firms representing over 400 advisors, managing more than $100 billion in assets.

Who acted as advisors during this transaction?

Dynasty Investment Bank was the exclusive financial advisor, and Sullivan & Cromwell LLP served as the legal advisor.

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