May 4, 2021
Louis Diamond Quoted
By Andrew Foerch
Dynasty Financial Partners will begin making minority equity investments in its partner RIAs, entering the mergers and acquisitions market for the first time.
Through a new initiative dubbed the Minority Investment Capital Program, Dynasty will use cash from its balance sheet to buy stakes of less than 50% in RIAs on its platform.
Louis Diamond, president of advisor recruiting and consulting firm Diamond Consultants, said the move was a ‘natural evolution’ of Dynasty’s model.
‘They’ve been the leading platform for breaking away top-tier wirehouse teams and then assisting in their growth and development into meaningful enterprises. These firms all have built up significant equity value and opted to go independent in the first place in order to defer their major monetization event until further into their growth curve,’ he said.