Ka-ching? Dynasty locks up deal with top sports management firm

Will provide platform for Octagon Financial; star-studded client roster

Feb 25, 2013 @ 3:44 pm

By Andrew Osterland

Dynast, Shirl Penney, Octagon
+ Zoom
Penney: Providing scale ((Photo: Bloomberg News))

Octagon Financial Services Inc., a sports and entertainment management company, will use the wealth management and technology platform of Dynasty Financial Partners LLC to serve its clientele of professional athletes and celebrities.

Part of advertising and marketing giant The Interpublic Group of Companies Inc., Octagon provides financial planning, investment advice and lifestyle services, including bill payment, to athletes and entertainers. The firm is registered as an investment adviser with the Securities and Exchange Commission.

“Our clients generate a lifetime of earnings over a short period of time,” Jan Plewes, managing director of Octagon, said in a press release. “For 30 years, we have helped them manage their wealth — from first contract signing through retirement and beyond.”

Dynasty will help Octagon with insurance, trust services, loan management and investment management, while the agency will handle the conciergelike services on its own. “This is a firm with a good flow of opportunities,” said Shirl Penney, chief executive of Dynasty. “We give them scale and access to things that would be tough to get on their own.”

With athletes being a frequent target for unscrupulous financial advisers, Mr. Penney suggested they represent a sizable business opportunity for RIAs. “You hear a lot of horror stories about athletes. I think many are gravitating to advisers who follow the fiduciary standard,” Mr. Penney said. “They want advisers paid only for their advice, and not for products they sell.”

Among Octagon's 160 clients are Olympic swimmer Michael Phelps, L.A. Clippers point guard Chris Paul, former Pittsburgh Steelers coach Bill Cowher, former basketball player Moses Malone and U.S. Snowboarding Olympian Ross Powers.

The deal is the first announced by Dynasty this year and the 17th since the firm was launched in December 2010. Octagon did not disclose the amount of assets it currently manages, but a Dynasty spokesperson said they more than met the company's $300 million AUM threshold for bringing on new clients. Dynasty now has more than $15 billion in assets under advisement.

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