Dynasty Scoops Sixth Adviser Team
* Dynasty adds largest adviser team to date
* Plans to grow network to $10 bln in assets by year end
By Ashley Lau
Oct 18 (Reuters) – Dynasty Financial Partners, a wealth management start-up that has grown over the past year by building a network of breakaway veteran brokers, has added its sixth and largest adviser team, the firm said on Tuesday.
LVW Advisors, which has about $4.9 billion in assets under management, has become the latest independent firm to join Dynasty’s adviser network.
Dynasty President and Chief Executive Shirl Penney told Reuters that the firm plans to have $10 billion in assets within the network and 10 adviser teams on board by year-end.
“I can say confidently that we’re on pace for both,” he said. “Looking at the pipeline, we’re going to have a series of large advisers join.”
Dynasty currently has three adviser groups with more than $1 billion in assets. Most of the company’s adviser teams are headed by veteran advisers who spent years at the brokerage arms of large banks. Dynasty is backed by a number of former wirehouse executives, including the founders who were former Citigroup executives.
Rochester, New York-based LVW was started last week by 25-year industry veteran Lori Van Dusen, who spent the bulk of her career working at Citi. Van Dusen had worked with Penney at Citi Smith Barney.
BUILDING INDEPENDENCE
Penney said the opportunity for advisers to break off and build equity through their own practices has attracted many veteran advisers to the independent sphere.
“They are their own business, which is a very compelling aspect for a lot of advisers going independent,” he said. “It’s an opportunity to build enterprise value.”
Dynasty founders spent two years designing a support structure for advisers who want to move into the independent space but lack the overhead backing of a big firm. The company has been in operation for 10 months.
Penney said the average time it works with a new adviser team is from four to six months, from when the partnership starts to when the adviser team actually goes independent.
“We really live with these advisers,” he said.
Dynasty has a combination of wholly-owned subsidiaries, such as Dynasty Insurance Services, and third-party partners, such as trust companies, that become available resources to adviser teams that chose to join the company’s network.
“Every partner is an investor, so there’s no private equity behind Dynasty,” he said.