Deal with Richardson gives advisers access to investment tools on either side of the border.
Dynasty Financial Partners LLC, which has grown rapidly providing a technology platform and a variety of services for RIAs and independent advisers for a fee, is looking to expand its capabilities for clients of its adviser firms that move north of the border.
The firm's strategic relationship with Richardson GMP Ltd., the largest independent wealth management firm in Canada, announced yesterday, is intended to provide advisers from both firms the ability to access investment management capabilities for clients on either side of the border.
“There's a lot of back-and-forth movement of executives, entertainers, athletes and the like across the border, yet the financial services industries of the two countries are quite separate,” said Todd Thomson, chairman of Dynasty. “Clients want someone who can look at their entire portfolio, not at their separate assets in Canada or the U.S., and keep the investment philosophy seamless across the border.”
Mr. Thomson said the need for such a solution became apparent when three different adviser teams at Dynasty said they had clients moving back to Canada who wanted help. The firm had had several discussions with other Canadian firms but settled on Richardson for a partner. The firm has 115 adviser teams and manages more than $15 billion in assets. Dynasty currently serves 17 firms managing assets of more than $16 billion.
Richardson expects that Dynasty will be particularly helpful with ultrahigh-net-worth clients who either move to or spend significant time in the U.S.
“We have Canadian clients living in the U.S. with $80 million who need help,” said Andrew Marsh, chief executive of Richardson. “Dynasty is a leading-edge thinker on allocation issues for ultrahigh-net-worth investors, and we intend to lean on their strengths in investment management and alternative investments for those clients.”
Mr. Marsh originally intended to get licensed as an investment adviser in the U.S. to serve clients who moved south of the border. “The plan was to get licensed in the U.S. and see how opportunities developed,” he explained. “But then we met [Mr. Thomson] and Dynasty.” He said the similarity between Dynasty's focus on independent registered investment advisers and Richardson's position as the biggest independent firm in a Canadian industry heavily dominated by five big commercial banks make the firms a good fit.
Richardson did get its license to offer advisory services in the U.S. but doesn't anticipate making a big push to sign up U.S. clients.
“We're not going to compete with Morgan Stanley or Goldman Sachs,” Mr. Marsh said. “We're a small independent firm that first and foremost takes care of its Canadian clients. With the good work our advisers do, maybe we'll get some referrals for U.S. clients.”
Mr. Thomson said the two firms drafted a simple revenue-sharing agreement that works for both firms. “This is the beginning of what should be an interesting and unique partnership,” he said.
