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shirl-penney.jpg Photo by Samuel Steinberger
Dynasty Financial Partners CEO Shirl Penney

Dynasty Financial Partners Files for $100M IPO

The RIA services platform, launched in 2010, hopes to raise up to $100 million in its initial public offering, according to an SEC filing.

Dynasty Financial Partners, the St. Petersburg, Fla.-based services platform for independent advisors, has filed with the Securities and Exchange Commission this week for an initial public offering. In the initial registration form filed with the SEC Wednesday, Dynasty listed a proposed maximum aggregate offering price of $100 million and plans to list its Class A common stock on the NASDAQ Global Market under the symbol “DSTY.” 

The offering has not yet been priced, so it remains to be seen how much capital Dynasty will raise in the public markets.

Dynasty was founded in 2010 by President and CEO Shirl Penney and co-founder and Chief Operating Officer Edward Swenson, with the goal of helping breakaway advisors go independent and provide a services platform to help them launch their own RIAs.

Dynasty has since grown into a platform serving 46 partner firms representing 292 financial advisors with an average assets under administration per advisor of $221 million, as of Sept. 30, 2021. The firm had $68 billion in assets under administration as of Sept. 30, up 40% from a year ago. Dynasty reported revenues of $49.2 million on net income of $10.6 million for the first nine months of 2021, up from $32.7 million and $2.9 million, respectively, for the same period of 2020.

The firm provides core services to its partner firms, including technology and business solutions, as well as finance, marketing, investments, compliance and practice management. According to the filing, 54% of the firm's revenues come from the core offering of mid- and back-office business services for firms in the network. Partner firms can also outsource their investment management capabilities using Dynasty’s own turnkey asset management platform (TAMP), which accounts for 19% of the firm's revenues. The remainder of revenue comes from financing services for partner firms.

“For more than a decade, we have championed the benefits of independent wealth management for HNW and UHNW individuals and have contributed to the movement of assets from traditional brokerage channels to the independent channels of wealth management,” Dynasty’s Form S-1 said. “Our firm is focused on meeting the needs of wealth advisory firms across their life cycle. This provides us with an in-depth understanding of the needs and challenges that our clients face and makes us well positioned to develop highly attractive products and solutions to meet their needs. This deep understanding has been built through not only our standalone operating history, but the longer-term experience of our management team. Our strong relationship with our clients is evidenced by an average client tenure of over four years.”

The filing said the firm continues to onboard new partner firms, including adding four new RIAs in the first nine months of 2021, representing 22 advisors and $1.7 billion in assets. Dynasty added two other partner firms at the end of 2021.

Dynasty also continues to increase its network’s use of its capabilities and launch additional capabilities, the filing said. For instance, a few years ago, Dynasty built out its Capital Strategies division, offering partner firms a range of financing solutions and capital options to help them grow.

The company also continues to consider acquisitions to help build out its tech stack and offerings, the filing said. For instance, the firm recently announced that it has teamed up with MarketCounsel to make a strategic investment in SmartRIA, a regulatory and compliance technology platform for RIAs. Dynasty will deploy The SmartRIA Pro platform across its network firms.

Goldman Sachs, J.P. Morgan, Citi, and RBC Capital Markets are the joint bookrunners on the offering. D.A. Davidson & Co., Keefe, Bruyette & Woods, a Stifel company, and Maxim Group are co-managers on the deal.

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