Dynasty Financial Partners revealed it has successfully closed a minority capital raise aimed at fueling its continued growth.
Along with several long-term investors and board members, notably the Charles Schwab Corporation, the latest funding round includes new strategic stakes from BlackRock, and JPMorgan Asset Management, which is certainly a high roller at the table with $3.3 trillion in AUM as of June 30.
The announcement from Dynasty is silent on the terms, but an earlier report by CityWire, citing an unnamed source, says it places the mammoth RIA growth and support platform at an $800-million valuation.
The proceeds from this investment, which highlights the increasing prominence of the RIA space, will go towards enhancing Dynasty’s platform, which provides integrated technology, services, and capital solutions to independent RIA firms.
Dynasty CEO and founder Shirl Penney emphasized the impact this will have on its clients. “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,” said Penney.
He added that the strengthened balance sheet will provide more capital to support clients’ broader strategic goals, such as M&A or succession planning.
Harvey Golub, chairman of Dynasty’s board, remarked on the importance of having major financial institutions involved.
“To have backing and support from a roster that includes one of the largest custodians, asset managers, and banks in the world is fantastic,” Golub said, adding that it underscores Dynasty’s role in shaping the future of the industry for independent advisors. "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."
It's difficult to understate the scope of Dynasty’s platform, which currently supports 58 Network Partner firms with over 400 advisors, collectively managing more than $100 billion in assets.
Fresh from a shakeup in its leadership just last month that includes a new COO hire, the company also benefits from a $50 million credit facility from a cohort of bankers that includes Citibank, Goldman Sachs, and JPMorgan, further bolstering its growth opportunities.
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