Dynasty Financial Partners, an American technology-enabled wealth management solutions firm, has announced the closing of a minority private capital raise.
Boston-based private equity firm Abry Partners and financial services provider Charles Schwab have taken minority stakes in the wealth management solutions firm.
Along with Abry Partners and Charles Schwab, Dynasty Financial Partners’ several existing investors and directors of the board have injected additional capital in the funding round.
The funding is expected to be utilised to make investments in technology and technology integrations and to expand the firm’s core services offering.
Besides, Dynasty Financial Partners plans to further develop its turnkey asset management programme (TAMP) and investment solutions offering, as well as to add intellectual capital and key talent with the capital raise.
Dynasty Financial Partners’ network of clients owns and runs independent registered investment advisors (RIAs) that utilise the company’s capital solutions, integrated technology, services and business solutions, and TAMP.
In line with the capital raise, Dynasty Financial Partners executed minority equity investments in several of its RIA clients through a swap deal wherein the clients received the firm’s equity in exchange for their equity.
A $50m credit facility from RBC Capital Markets, JP Morgan, UMB Bank, Goldman Sachs Bank, and Citibank was closed by the wealth management solutions company in September 2022, providing access to further expansion capital.
Dynasty Financial Partners president and CEO Shirl Penney said: “After evaluating the state of the public markets, our board decided to have a handful of conversations with potential private investors.
“Having been afforded the luxuries of optionality and time, there were two requirements that were atop my list as we went through the process – partnership and alignment. “I am delighted to say that several firms viewed the process in the same light and am excited to welcome Abry and Schwab to sit alongside our already extremely supportive group of investors.”
