Dynasty Financial Partners has closed its in-house wealth management business to focus solely on its business-to-business services, the company announced.
"To better serve the RIAs in their network, Dynasty decided in 2018 to focus the entirety of its resources and capital going forward on the B2B market segment and to exit the business-to-consumer segment with the closing of its Private Wealth Management unit," the company mentioned at the end of a press release this week that focused on the company's 2018 market growth.
Dynasty also confirmed that Michael C. Brown, who has led Dynasty Wealth Management since it was founded in 2010, and who is still a Dynasty shareholder, left the firm. ADV filings indicate his employment at Dynasty ended in December, and that he was hired as a managing director at Magnus Financial Group in New York City the same month.
Brown did not respond to requests for comment.
It wasn't clear at press time how much of the assets from Dynasty's RIA unit moved with Brown to Magnus.
"We shut down the business," said Dynasty spokesperson Sally Cates in an e-mail. "If any clients did not go with Mike, they would have converted to retail accounts at custodians or they moved to another advisor."
Cates also said, "Mike stepped down from [the] board in late 2017 to begin his search for [a] new home. Over the last year, Dynasty has been working proactively with Mike Brown to help him and his team find a home for his clients and his business as Dynasty made the transition to being a fully committed business-to-business firm." Dynasty's RIA unit was closed in the fourth quarter, she added.
In the company's most recent ADV filing at the end of 2017, Dynasty Wealth Management was listed as having $2.2 billion in assets under management and $1.6 billion under advisement.
Dynasty Financial was founded in 2010 by a partnership headed by CEO Shirl Penney as a business focused on serving the needs of independent advisors, including their need for technological solutions, management and consulting services and start-up loans. Dynasty also says it sometimes acquires minority interests in its RIA member firms. In its press release on Tuesday, Dynasty said it has passed $30 billion in RIA assets on its core platform. It has also passed the $15 billion asset mark on its turnkey asset management platform.
Dynasty Financial comprises a network of 47 RIA firms, according to the press release.