Dynasty Financial Partners is launching a new division to provide help for advisors who want to buy part of partner firms, Dynasty announced Wednesday.
Dynasty Capital Strategies will oversee RIAs looking for liquidity options in the market and will expand a firm’s capabilities to include purchasing a revenue interest in partner firms, Dynasty says. This will complement Dynasty's current lending program for RIAs to provide its partner firms with additional ways to access liquidity for business start-up, succession planning and asset diversification or to fund acquisition growth strategies.
Through these optional financing programs for partner firms, Dynasty will enable RIAs to tap into capital through Dynasty, the firm says.
With the revenue participation program, Dynasty is targeting revenue purchases in the 5 percent to 10 percent revenue range. The revenue participation program will allow RIAs to repurchase their revenue shares after a fixed period of time.
The new program is an expansion of Dynasty’s existing RIA Financing Services in which Dynasty provides financing structures for use in the funding of RIA start-up expenses, ongoing working capital and acquisitions. While underwriting can vary, Dynasty’s lending program typically provides up to 50 percent of a firm’s revenue to be made available as a loan for the business and its owners.
Dynasty Financial, based in New York City, has 42 network advisory firms that manage more than $20 billion in client assets.