BlackRock and J.P. Morgan Asset Management are the latest investors in Dynasty Financial Partners, which closed a minority capital raise designed to drive its ongoing growth, Dynasty said Tuesday.
Several of Dynasty’s long-standing investors and members of its Board of Directors supported the round, along with three strategic investors, including new investors BlackRock and J.P. Morgan Asset Management, along with existing investor Charles Schwab.
All proceeds raised will be used to enhance Dynasty’s platform, the company said in a press release.
Dynasty also has a $50 million unused credit facility from Citibank, Goldman Sachs Bank, J.P. Morgan, RBC Capital Markets and UMB Bank.
“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 Shirl Penney, Dynasty CEO and Founder.
He added, “Enhancing our fortress balance sheet will allow us to provide more capital in support of our clients who are looking to grow their businesses via M&A or achieve succession planning goals.”
“Enhancing our fortress balance sheet will allow us to provide more capital in support of our clients.”
– Shirl Penney
Penney also thanked the investors who have supported Dynasty since its early days.
“This investment round marks a significant milestone,” according to Dynasty Chairman Harvey Golub.
“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. “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.”
Dynasty’s network includes mainly independent RIAs that leverage Dynasty’s technology, services, turnkey asset management program (TAMP), digital lead generation services, capital solutions and investment bank.
The company has 58 network partner firms, representing more than 400 advisors with over $100 billion in platform assets.
Dynasty Investment Bank served as exclusive financial advisor to Dynasty Financial Partners on the transaction, while Sullivan & Cromwell served as its legal advisor.
In September, Dynasty hired Marc Hineman as COO, and appointed Andrew Marsh as Head of Core Services and Tim Oden as Chief Growth Officer. In May, the firm onboarded advisors Thomas Hofstetter and Daniel Baron, who joined from Wells Fargo as the DayMark Wealth Partners as the Hofstetter Baron Group.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.
