Dynasty Financial Partners Launches the Dynasty Freedom Note, The Industry’s First Forgivable Note for Breakaway Advisors

(BUSINESS WIRE)--Through Dynasty Capital Strategies, Qualified Advisors Can Receive Up To 100% of Their Revenue through the Note While Keeping 65% Gross Income

Dynasty Financial Partners today announced the launch of the Dynasty Freedom Note: the industry’s first forgivable note program for advisors seeking independence.

The program will allow qualified advisors who join the Dynasty Network the flexibility to receive a forgivable loan based on a percentage of their revenue that will be repaid with a portion of their RIA firm’s revenue. Once repaid, the advisors will own all equity in their RIA and continue to have a service relationship with Dynasty for ongoing support.

The Dynasty Freedom Note program is another option being made available to advisors through Dynasty’s subsidiary business, Dynasty Capital Strategies (DCS). DCS also provides traditional loans and structured minority capital to RIAs to allow for diversification, M&A needs, or to fund succession planning.

With the Dynasty Freedom Note, qualified advisors can choose to have up to 100% of their revenue paid to them as they transfer their business to independence with Dynasty’s support in exchange for an eight-year forgivable loan. As an example, an advisor can choose to receive 100% of their trailing 12 month revenues in a Dynasty Freedom Note and during the loan period receive sixty-five-percent of their revenue. The thirty-five-percent of revenue that Dynasty receives covers loan interest, regular principle servicing and access to Dynasty’s entire Core Services package to support the middle and back-office needs of their RIA.

Dynasty Core Services provide RIAs synthetic scale and encompass the key services required to run a successful advisory firm including a full customized technology stack, an integrated proprietary advisor Desktop for delivering a digital client experience, ongoing compliance support, books and records and general finance function support, strategic analysis, and business planning.

Advisors will also have access to Dynasty’s marketing and public relations team, legal team, practice management and inclusion in all Dynasty community events, including Dynasty’s annual investment Summit and Dynasty’s annual Partners Summit. Growth-oriented RIAs will have direct access to Dynasty’s newly announced M&A support function, Dynasty Connect, which assists RIAs at every step of the inorganic growth process. Lastly, the new RIA and its clients will be able to leverage Dynasty’s award-winning Investment Platform and Dynasty’s industry-leading transition team to help navigate their move to independence.

“With the addition of the Dynasty Freedom Note to our other capital offerings, there does not exist a more flexible and robust capital solution set for Breakaway advisors and RIAs than what Dynasty has available to the market,” said Ed Swenson, Dynasty’s COO, who oversees Dynasty’s product offerings. “When you combine these capital solutions with Dynasty’s transition and consulting capabilities, our CORE service offering, our Investment platform, and the ability for advisors to be ‘independent but not alone’ as members of our elite advisor community, it’s easy to see why increasingly we are the firm of choice for some of the top advisors in the industry.”

“The Dynasty Freedom Note represents another example of our drive to innovate in order to meet the evolving needs of the industry,” said Dynasty President and CEO, Shirl Penney. “Our goal at Dynasty has always been to be the premier service platform to independent advisors – an elite service bureau – and the place that top independent advisors turn to when they need support across their businesses during the various lifecycles of their firms. We are committed to continuing to meet the needs of our growing community and to serve our evolving industry as more and more roads are paved to independence for advisors and their clients. With $8 Billion in new client assets having been added to the Dynasty platform over the past two months alone, it is clear to us that the movement to independence is as strong as ever.”

Todd Thomson, Dynasty’s Chairman of the Board, who founded Dynasty alongside Shirl and Ed nine years ago, will continue to chair Dynasty’s Capital Commitment Committee that oversees all DCS activity.

“I am thrilled that today we can launch the Dynasty Freedom Note to the market” said Mr. Thomson. “One of Dynasty’s core values is to celebrate advisors as independent entrepreneurs while supporting their professionalization and growth. Unlike other forgivable notes in the industry, once the Dynasty Freedom Note period ends, advisors own 100% of their profitability and their equity. Their clients are their clients, their business is their business. I, along with the rest of Dynasty’s Board, have never been more excited for what the future holds for Dynasty and for the independent advisor ecosystem.”

On May 30th, 2019, Dynasty Financial Partners launched Dynasty Connect, a platform to support independent advisory firms with private M&A transactions. In addition, since April 29th, 2019, Dynasty has announced three new financial advisory firms to their Network, totaling $8 billion in client assets.


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