Dynasty Financial Partners, the thriving support platform for independent registered investment advisors (RIAs), is making substantial strides towards its ambitious goal of reaching $100 billion in assets by July 2024, according to founder and CEO Shirl Penney. Currently overseeing around $80 billion in assets spread across more than 50 partner firms, Dynasty’s journey towards this target has been marked by a significant uptick in support for larger firms and a strategic expansion of services.

Reflecting on the firm’s evolution over its nearly 14-year history, Penney noted that when Dynasty was founded, a “very large breakaway advisor” typically managed around $250 million. However, the landscape has transformed, with Dynasty now facilitating the transition of numerous $500 million to multi-billion-dollar breakaway teams. In the past five years
alone, Dynasty has likely been responsible for more billion-dollar breakaways than the rest of the industry combined.

As the path to independence becomes well-trodden, sophisticated advisory teams serving high-net-worth clients are increasingly making the leap to independence. They recognize the potential for higher income, increased enterprise value, enhanced customization, greater freedom, flexibility, and access to modern technology that independence offers.
Dynasty’s approach to partnerships involves acquiring up to 25% of the
equity in a partner firm, all while ensuring that ownership and decision-making authority remain firmly in the hands of the firm’s principals. In-house M&A activities are conducted to support their inorganic growth objectives. Additionally, Dynasty recently ventured into investment banking to serve advisors and firms outside its ecosystem interested in pursuing M&A transactions.

The firm is making strategic investments in talent and technology to bolster its outsourced investment services. In response to growing demand, Dynasty is witnessing advisors seeking to outsource not only technology but also their investment functions. This approach allows advisors to leverage the expertise of trusted partners, freeing up more of their time to focus on client interactions and business development.

Dynasty has allocated substantial resources, exceeding seven figures, for
educational initiatives aimed at developing emerging business leaders. The
partnership with MIT’s Sloan Business School and the appointment of Andrew
Marsh as vice chairman, mentor, and coach reflect the firm’s commitment to
nurturing the professional growth of advisors, especially as many of them
assume substantial leadership roles within their enterprises.

Ultimately, Dynasty’s objective is to establish a national brand presence
akin to “Intel inside,” where the firm’s contribution enhances the
excellence of the advisors and firms it supports. Such brand recognition
would raise awareness of independent advice and could potentially lead to
hundreds of billions in assets flowing through Dynasty’s platform.
Penney envisions that, over the next decade, someone in the RIA space will
build a business worth $10 billion to $20 billion, and he expresses
confidence that Dynasty could be the one to achieve this milestone.
While it may take a few years, Penney anticipates that Dynasty will
eventually go public. The firm filed for an IPO last year but withdrew its
plans due to unfavorable market conditions. Instead, Dynasty secured fresh
capital from Charles Schwab and private equity firm Abry Partners. Penney
suggests that when market conditions stabilize, Dynasty may reconsider an
IPO as it aligns with the firm’s commitment to sustained excellence and
transparency.

Highlighting the strength of Dynasty’s financial position with an
“incredible fortress” balance sheet marked by an excess of capital and zero
debt, Penney emphasizes the firm’s ability to support its advisors’ growth,
particularly in comparison to competitors with higher leverage and impending
interest rate adjustments.

Dynasty Financial Partners is well on its way to realizing its vision of
becoming a prominent force in the RIA space, with a commitment to empowering
independent advisors and fostering long-lasting excellence in the industry.