Envestnet and Dynasty Financial Partners are teaming up to launch the Advisor Services Exchange. The aim of the move — which includes Envestnet acquiring a minority stake in Dynasty — is to provide financial advisors using Envestnet technology with more business tools and outsourcing services for growing their practices.
The ASx offering should be introduced later this year, the two firms said late Wednesday. (They declined to share the size of Envestnet’s stake or what the target release date is.)
Although this move is Envestnet’s first investment in Dynasty, Dynasty Chief Operating Officer Ed Swenson told ThinkAdvisor in an email that the two firms have “worked together for over nine years [and,] throughout that time, Dynasty has leveraged elements of Envestnet’s investment platform, rebalancing tools, reporting software and data intelligence tools.”
In addition, “many of Dynasty’s clients also use Envestnet’s wealth management tools, including MoneyGuidePro,” said Swenson, who says he has been on Envestnet’s key client advisor counsel for over six years.
The announcement by Envestnet and Dynasty was called a “very interesting development” by Gavin Spitzner, president of Wealth Consulting Partners, in a tweet.