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Envestnet Buys Stake in Dynasty, Forms Services Exchange

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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.

Advisor Impact

The announcement by Envestnet and Dynasty was called a “very interesting development” by Gavin Spitzner, president of Wealth Consulting Partners, in a tweet.

ASx is “essentially a build-out of various outsourcing services Dynasty has been developing (https://dynastyfinancialpartners.com/services) that will now be available to support the broader @ENVintel advisor base,” Spitzner said.

“Services include access to growth capital, business mgmt tools, marketing support and OCFO. Given the massive reach Envestnet has in terms of advisor relationships, its success rides on” the number of its advisors growing, Spitzner said.

“We’re excited to provide Envestnet clients access to services that help them meet the growing demands of managing their businesses,” according to Aaron Bauer, head of wealth strategy at Envestnet. “We’re doubling down on our commitment to — and investment in — financial advisors, and we’re proud to partner with Dynasty to fulfill it.”

Envestnet says its technology and services are used by more than 100,000 advisors, more than 40 of the 50 largest U.S. wealth management and brokerage firms and 500 large RIAs.

St. Petersburg, Florida-based Dynasty has 45-plus independent advisory firms on its platform with about $40 billion in client assets. In addition to RIAs, Dynasty works with institutional and enterprise clients.