In an Industry Milestone, Dynasty Financial Partners Launches New Initiative to Make Minority Investments in Network Partner RIAs

Dynasty Adds More Deal Execution Experience to Its Board with the Naming of Rebecca Zeitels Alcalay as a Board Member

ST. PETERSBURG, Fla.–(BUSINESS WIRE)–Dynasty Financial Partners today announced that, effective immediately, Rebecca Zeitels Alcalay will become a Member of the Board of Directors of Dynasty Financial Partners.

In addition to the appointment of Ms. Alcalay to the Board, Dynasty will now round out its suite of capital solutions by offering to make minority investments in their client firms. The launch of the minority investment program will allow Dynasty to offer its clients the most comprehensive set of capital solutions to RIAs in the industry. This new capital program adds to Dynasty’s existing programs offering traditional debt financing as well as non-controlling revenue interests. Ms. Alcalay provided significant input to the design of such programs and her joining the Board is a recognition of her contributions. In addition, as part of Dynasty’s Diversity and Inclusion initiatives, the company feels that new and different perspectives on how it meets the needs of its clients and employee partners is a competitive advantage in business today.

“Having watched the growth and evolution of Dynasty over the last several years, I am honored to join the Board. From a Board perspective, the addition of this new capital program is a natural next step for the company. As the race for growth and scale quickens within the wealth management space, there is increasing demand from RIAs seeking an equity partner. I have seen the success of Dynasty’s existing debt and revenue interest programs in providing RIA’s access to capital for succession planning, growth initiatives, operational enhancements and similar initiatives and believe the addition of this new minority investment program will add the final arrow to the quiver. This will make Dynasty’s capital solutions the most comprehensive available in wealth management. When combined with Dynasty’s middle- and back-office services, integrated technology, practice management and general access to best-in-class solutions for RIAs, it makes Dynasty the obvious standout choice as an equity partner,” said Ms. Alcalay.

MINORITY INVESTMENT CAPITAL PROGRAM

In the last year, minority transactions involving RIAs have more than tripled as firms are taking advantage of attractive market valuations and an influx of capital. Minority equity is a valuable capital solution for a variety of strategic needs, including owner liquidity, M&A, and succession. In addition, minority capital can help institutionalize a brand and enhance credibility with clients and advisor recruits alike.

“The advantage of minority equity is that RIAs maintain control and independence while achieving certain strategic objectives. With Dynasty, they are getting capital from a partner – someone they already know and trust. Our minority investment capital program is designed to offer our Network Partner RIAs not only a competitive valuation, but also access to strategic guidance and specialized resources without onerous operational covenants or fixed liabilities,” said Harris Baltch, Head of M&A and Dynasty Capital Strategies.

Dynasty is an experienced RIA capital provider with a strong track record of delivering efficient and tailored capital solutions to its clients. Additionally, Dynasty’s award-winning capabilities to support RIA growth initiatives and strong industry reputation make it an attractive minority capital partner.

The approach is to offer long-term, patient capital without the restrictions typically found in fund-sponsored investments. Consistent with its history of helping advisors become entrepreneurs, Dynasty’s minority investments will have governance rights in-line with a passive investor and will only require approval for significant business matters. Providing capital to RIAs is only one of the many services that Dynasty provides to its partner RIAs, and because capital has historically been provided off of the firm’s own balance sheet it has allowed the alignment to remain that Dynasty works for the RIA principals while the principals and advisors work for their end clients. The combination of these factors makes these capital programs not only the most comprehensive, but also the most flexible available in the market today.

“Similar to nine years ago when we launched our lending programs for RIAs, or five years ago when we launched the industry’s first revenue purchase option for RIAs, this new program is in response to listening to our clients – our Network of industry-leading RIAs – on what they want and need from their integrated growth partner and platform services provider. Since Dynasty is primarily a FinTech, value-add business services and investment platform provider, it allows us to be more flexible and accommodating in how we use our balance sheet for various capital solutions to meet the needs of our clients. More and more RIA advisors are choosing to have a partner – to be ‘independent but not alone’ – and to access synthetic scale and support in growing their businesses and caring for their clients. Dynasty is proud to be the market-leader in delivering the broadest array of integrated services available to RIAs from one singular partner in the industry today,” said Dynasty’s President and CEO, Shirl Penney.

NEW BOARD MEMBER: REBECCA ALCALAY

“Rebecca is a rising star and will be a major contributor with fresh perspective as the newest member of Dynasty’s already very impressive Board. Her extensive experience and expertise in private investments will be invaluable at the Board level as Dynasty rolls out this new capital program and begins making minority investments in our client firms. I thank Rebecca for her efforts in supporting our business to date and welcome her insights in an official capacity on the Board,” said Harvey Golub, Chairman of Dynasty Financial Partners.

REBECCA ALCALAY BIOGRAPHY

Rebecca Alcalay serves as Vice President at GF Investments, a single-family office based in New York, which she joined in 2017. She is responsible for overseeing all aspects of the firm’s private equity investments, from due diligence to deal execution and portfolio management, with a sector focus in financial services. Prior to joining GF Investments, Ms. Alcalay held investing roles at Temasek, a Singapore sovereign wealth fund, and Oak Hill Capital Partners. She began her career at Blackstone in its Restructuring and Reorganization Group.

Ms. Alcalay received a B.S. in Economics summa cum laude from the University of Pennsylvania, The Wharton School, and an M.B.A. from Harvard Business School.

About Dynasty Financial Partners

Dynasty Financial Partners is a leading brand name in the wealth management industry that has become synonymous with powering RIA independence. With $60 billion on its core services platform and nearly $30 billion on its TAMP, the firm is constantly evolving and expanding its RIA outsourcing, capital, and investment capabilities across the board.

Dynasty is known for assisting advisors of integrity to better service their clients, run their businesses more profitably, grow faster, and enhance the enterprise value of their firms. Dynasty does this by providing wealth management and technology platforms for select independent financial advisory firms. Dynasty creates access to valuable resources and industry-leading capabilities through an open-architecture platform, enabling advisors to address their clients’ needs and to protect and grow their wealth. Dynasty supports independent advisors and their teams in being independent, but not alone, by creating exclusive community events and experiences. Dynasty also offers access to flexible capital solutions to help advisors expand, scale, and grow their business and provides M&A support to firms looking to grow inorganically or to plan for succession. Dynasty’s core principle is “objectivity without compromise,” and the firm is committed to developing solutions that allow investment advisors to act as true fiduciaries to their clients. Dynasty has a leading network of RIAs who leverage its integrated platform and Dynasty’s growing Enterprise Services Group supports larger institutional clients who often have multiple advisors in multiple cities by delivering Dynasty’s platform at the home office and firm level. Dynasty has helped to level the playing field for advisors and firms looking to deliver Private Wealth Management capabilities to their UHNW clients vs many of the larger Wall Street firms in providing a robust suite of capabilities, products, and services, which when combined with Dynasty’s support offers independent advisors the ability to compete at the highest levels of wealth management client opportunities.

For more info on Dynasty please visit: www.dynastyfinancialpartners.com
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