Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS
Menu AdvisorHub
  • News
      • Latest News
          • Brendan Biruk, Leslie Crilley and Dan Rattigan (left to right) of Washington Crossing Financial Group.LPL Reels in UBS Pennsylvania Team with $245 Million Book
          • Ralph Hamers, CEO of UBS Group AGUBS Wealth Americas Profit Hits Record with Fewer Brokers
          • DealsHightower Takes Stake in $830 Million New York RIA
          • Business DealCI Financial Buys Chicago RIA and Asset Manager Overseeing $23 Billion
        • Close
      • Advisor Moves
          • Brendan Biruk, Leslie Crilley and Dan Rattigan (left to right) of Washington Crossing Financial Group.LPL Reels in UBS Pennsylvania Team with $245 Million Book
          • Boca Raton, FloridaRockefeller Lures Two Florida Teams with $9.8 Mln Revenue
          • Morgan Stanley, UBS Advisor movesMorgan Stanley Rehires $3.3-Mln UBS Team in North Carolina
          • Lars Olson of Sanctuary Wealth Partners in Marion, OHSanctuary Hires $435-Mln Merrill Team, Snowden Lures Another from Retirement
        • Close
      • Enforcement
          • Advisor MoneyWells Fargo Recoups $2.5 Million from New Jersey Duo
          • Businessman in prison, fraudWells Fargo Claws Back $3 Million from Jailed Ex-Broker
          • Finra signFinra Fines, Supends Ex-Ameriprise Broker Who Flipped ‘A’ Shares
          • Barred from the securities industry.SEC Puts Nail in Ex-Morgan Stanley Broker’s Career Coffin
        • Close
      • Markets
        • `Nothing Safer Than Cash’: Tech Rout Puts Silicon Valley on Edge
        • ‘Any News Is Bad News’ as Earnings Fail to Save Equity Bulls
        • ‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
        • ‘Beaten Down’ ETF Is a Way to Play Inverted Curve, BofA Says
        • Close
      • Opinion
          • Opinion-How-Will-The-Coronavirus-Affect-The-Stock-Market-Opinion: Coronavirus – What Advisors Need to Know
          • opinion-investors-conquered-fees-next-up-is-their-own-behaviorOpinion: Investors Conquered Fees but Not Their Own Behavior
          • Investor-Confidence-In-Stocks-Rightly-Declines-Opinion-772x485Investor Confidence in Stocks Rightly Declines: Opinion
          • Opinion-Schwabs-Zero-Commission-Decision-Challenges-Its-Ria-ClientsOpinion: Schwab’s Zero Commission Decision Challenges Its RIA Clients
        • Close
      • Fintech News
          • System outageMerrill Systems Hiccuped on Thursday as Stocks Slid
          • 7 dollar rolls‘The Rock’ Invests in Finance App Acorns, and New Users Get $7
          • TraderHigh-Frequency Traders Love Business With Robinhood
          • EtheriumJay Z, Charles Schwab-Backed Ethereum App Opens Doors to Public
        • Close
      • From the Publisher
          • 2021 PredictionsFrom the Publisher: Sirianni’s Predictions for 2021
          • Josh Rogers – 772×485Seven Questions with Tony Sirianni: Josh Rogers, Founder and CEO, Arete Wealth
          • Phil Hildebrandt — 772×485Seven Questions with Tony Sirianni: Phil Hildebrandt, Principal, CEO of Segall Bryant & Hamill
          • Christian Hyldahl, President of Varium Investment Partners-772×485An AdvisorHub Interview with Christian Hyldahl, President of Varium Investment Partners
          • John Peluso – 772×485Timely interview with John Peluso and AdvisorHub CEO Tony Sirianni
          • Louis Dworsky Coronacrash Interview-772×485Coronacrash Update: Hayden Royal’s Louis Dworsky & Tony Sirianni
          • Stratos_Jeff pic.jpg-772×485Coronacrash Update: Stratos Wealth Partners’ Jeff Concepcion & Tony Sirianni
          • coronacrash ben harrison – 772×485Coronacrash Update: BNY Mellon | Pershing’s Ben Harrison & Tony Sirianni
        • Close
    • Close
  • Deals & Comp
  • Recruiting Wire
  • Breakaway Center
  • Resources
    • resources-home-menuResources Home
    • PRACTICE MANAGEMENT RESOURCESPractice Management Resources
    • Transition ResourcesTransition Resources
    • Fintech ResourcesFintech Resources
    • menu fintechFintech Product Directory
    • Menu-Institute-772×485Institute
    • Boutique Wealth AdvisorsBoutique
    • EventsEvents
    • Asset Manager Hub
    • Close
  • AdvisorHub TV
  • Podcasts
  • RIA Center
  • Virtual Summit
close X
January 14, 2020

Shirl Penney Opens Up About Envestnet Deal

by Tony Sirianni
|
From the Publisher
|
Dynasty FP
|
Comments (2)
Share This
SUBMIT A TIP
Dynasty Financial Partners’ President & CEO, Shirl Penney

AdvisorHub CEO and Publisher, Tony Sirianni, recently had a chance to sit down with Dynasty Financial Partners CEO, Shirl Penney, in NYC in the wake of his firm announcing a strategic partnership with Envestnet (ENV) to build an Advisor Services Exchange (ASx).  As part of the announcement, Envestnet is also making an undisclosed minority and non-material investment in Dynasty.

 

Tony: Shirl, Happy New Year; good to see you.  Lots of news out over the last week on your JV announcement with Envestnet.  Congrats on it by the way.  Tell us about it. I know up until now, you had not taken any outside investment from anyone other than your BOD and employees.  Why now and why Envestnet?

Shirl: Thanks Tony, Happy New Year to you as well and great to see you too.  We are very excited about our announcement that Dynasty is building an Advisor Services Exchange (ASx) for Envestnet clients.  More details will be released as we get ready to launch later in the year, but essentially it will be a place where advisors can go to get value added services to help them run better, more efficient, and more profitable businesses – and ultimately free up time and resources for them to take better care of their clients.  Services like OCFO, OCIO, marketing support, and access to capital to grow the business that we feel advisors will have interest in.  As the needs of advisors change and evolve, so too will the menu of services.   In terms of why Envestnet, we have worked with the principals and team at Envestnet since before we launched Dynasty.  I feel that loyalty, relationships, positive history, and shared experiences still matter in our business.  We have been long-term clients and users of Envestnet technology across the firm, so it made the conversations on how to build a partnership around an exchange for advisors flow much more easily – given the history and relationships.  They have over 100,000 advisors now using their platform and have emerged as a clear leader in the wealth management fintech and data space.  The opportunity to support them on providing value added services to their clients given their size and scale is significant.  This deal is really about the ASx not the investment.  While I am appreciative and it adds even further validation to what we are doing at Dynasty, it was done to help further align our firms around the ASx.

 

Tony: What services will be in the ASx?  When do you envision the exchange will be live?  How will it be run between the two firms?

Shirl: We plan to launch the exchange later this year and both teams are knee deep in the work now.  As I mentioned, I believe access to capital for firms will be in demand, as we currently provide both a loan product and a revenue interest product to RIAs to help fund M&A, the launch of a new firm, succession planning, etc., and both products have been popular.  Given that Tamarac has such wonderful existing relationships with RIAs, we can likely be helpful there.  Broader M&A services could be a fit, and we believe there will be demand for OCFO, marketing, and OCIO services as well.  We have a few other services under consideration, but will start with services that Dynasty does and does well and grow as need and demand grows.  The ASx team, structure and services will be announced officially later this year. Both firms are very excited about the potential here.

 

Tony:  I know you were close with Jud Bergman, Envestnet’s late Chairman and CEO, and my condolences for how his passing must have touched you personally.  Our industry lost one of its finest.  I also know that you have said that Bill Crager was there even before you launched as a supporter of Dynasty.  How much of this partnership is about the long-standing relationship between your two firms?

Shirl: Thanks for that, Tony.  I have not yet spoken publicly about the loss of Jud – I think it’s still hard to comprehend for many of us.  He was an amazing person and his contributions to both this industry and this life will continue to ripple throughout.  Thanks, again, for your condolences.  Bill Crager, in my view, is one of the most talented people in the advisory industry, and to your point, I have known him a long time.  At the end of the day, we all want to work closely with people we admire, like, trust, and respect.  Additionally, Bill’s and Envestnet’s values align very well with Dynasty’s.  At our core, both firms are unapologetic advisor advocates. The advisors and their firms they work for are our clients.  We are both exclusively B2B firms.  We both care deeply about financial wellness in this country and want to do anything we can to help advisors improve their outcomes for their clients.  I’m thrilled to add Bill’s perspectives to our very engaged Board of Directors at Dynasty.

  

Tony: I would imagine the exchange will start by working with many of Envestnet’s or Tamarac’s RIA clients, but do you see the exchange being helpful to Envestnet’s IBD clients as well?

Shirl: Yes – good question.  Envestnet is very passionate about all of their clients and they were very clear that they would like our best thinking for the benefit of all clients that feel we can be helpful to them.  We are starting to see many IBDs think about how they might build segmentation strategies and even form divisions for their top advisors, similar to what the wires have done with Private Wealth groups.  Fundamentally, Dynasty is in the PWM platform business, so to the extent our expertise, capabilities, platforms, and services can help Envestnet clients, those things will be explored as part of the partnership.

 

Tony: Does this change anything about the way Dynasty runs today, services its clients, corporate governance, etc.?  What has been the reaction from your clients?

Shirl: It’s business as usual for both firms.  Nothing changes at Dynasty from a governance or leadership perspective.  We do have more cash on-hand now for building and enhancing services for our clients, hiring more talent to help with growth, and have more capital to help fuel programs for advisors via Dynasty Capital Strategies.  The outpouring of support from our clients has been just awesome.  The Dynasty Community is very special and hard to describe in terms of how close and supportive everyone is of each other.  People are genuinely happy for what it means for our ability to continue to scale and enhance our deliverables for their benefit, but they also know that most everyone who works at Dynasty owns stock in the company, so they are very excited as fellow entrepreneurs and friends for the ownership group at Dynasty as well.

 

Tony: I doubt I can get you to give me much info here, but going to ask anyhow!  I have heard this is your fifth capital round and it’s your largest one yet.  I have also heard that with your move to FL and recent success, that your cash flow has really increased.  Any comments there and what are the plans for how you will use the cash?

Shirl: Well, you are nothing if not direct, my friend!  You are correct in that we are a private company and don’t disclose our financials or capitalization table.  From Envestnet’s perspective, this was a minority investment and non-material.  That said, it’s true this is our fifth capital raise since founding the business in late 2010.  I am proud to also mention that our current largest investor, who has been with us since day one, also co-invested in the round, which I think is a wonderful vote of confidence for our team, our business, and our community and I am so appreciative of our BOD that has been with us since we launched.  Bill Crager is the first new BOD member we have added, as our current BOD has been so committed to the business. I am biased, but feel we have one of the finest BODs in financial services, and it just got even better by adding Bill.  I will also say, I am so proud of the fiscal discipline and capital stewardship that our team has exercised since we launched the business.  That focus and execution and key cultural aspect of our firm is one of the reasons we are in the strong position we are in today.

 

Tony: I know you are a big chess player – always liking to think several steps ahead.  Where could this partnership take Dynasty in the future?

Shirl: We are entering a strategic age for advisors and advisory firms.  Technology and services have historically been focused on helping advisors deliver the advice they offer their clients, but with this announcement, Dynasty and Envestnet will extend its support to helping them navigate the strategic landscape.   I think we can agree that the probability of successful outcomes for clients can be enhanced when you combine the increasingly impressive technological advancements and access to quality data with human empathy and understanding that an advisor brings to a client.  The future will belong to the cyborg advisor, who understands the tremendous synergies and benefits to clients that sit at this crossroad.  Layer on top of that, the firms that win disproportionately in this environment are the ones that are the best-led, have strong margins and cash flow, have outsourced non-core functions for synthetic scale, and who have the most time and resources to grow their business and to touch their clients.  Put simply, the best businesses will win.  Dynasty wants to be the firm that lives at this crossroad – at the intersection of technology and data with human touch and empathy – and that partners with advisors and firms of integrity that share this vision to help them win.  We want to help them run better business, which will collectively help us all win disproportionately going forward.  I see it very clearly and am excited to continue to execute across that vision and to continue to find the best partners, like Envestnet, that can help us get there faster and with more impact.

 

Tony: Thanks, Shirl, for sitting down with AdvisorHub on the record here to discuss this impressive inflection point for Dynasty.

Shirl: Thanks, Tony.  Always great to see you and trade ideas – and congrats on the continued success at AdvisorHub.

Like this article? Let AdvisorHub come to you!  Sign up

Share This
Comments (2)
  • on Jan 15 2020, been there says:

    this is a big deal ofr the indy space on a bunch of levels–will be interesting to follow

    > Reply to been there
  • on Jan 15 2020, BG says:

    My guess is more capital more recruiting.

    > Reply to BG

Leave a Reply Cancel reply

Tony Sirianni Podcast Banner

CORONACRASH NEWS

  • Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Jan 25, 2021
  • Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Jan 19, 2021
  • Raymond James Slashes CEO Pay 17% in Turbulent Year

    Raymond James Slashes CEO Pay 17% in Turbulent Year

    Jan 8, 2021
  • Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Jan 5, 2021
  • J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    Dec 4, 2020

NEWS

  • LPL Reels in UBS Pennsylvania Team with $245 Million Book

    LPL Reels in UBS Pennsylvania Team with $245 Million Book

    Jan 26, 2021
  • UBS Wealth Americas Profit Hits Record with Fewer Brokers

    UBS Wealth Americas Profit Hits Record with Fewer Brokers

    Jan 26, 2021
  • Hightower Takes Stake in $830 Million New York RIA

    Hightower Takes Stake in $830 Million New York RIA

    Jan 26, 2021
  • CI Financial Buys Chicago RIA and Asset Manager Overseeing $23 Billion

    CI Financial Buys Chicago RIA and Asset Manager Overseeing $23 Billion

    Jan 25, 2021
  • Finra Bars Ex-Merrill Broker Kenahan After Record NH Settlement

    Finra Bars Ex-Merrill Broker Kenahan After Record NH Settlement

    Jan 25, 2021

FINANCIAL INDUSTRY PODCASTS

AllIndependenceSuccess
The must listen-to podcast for financial advisors by Tony Sirianni. Guests to include:
-Ron Kruszewski
-Shirl Penney
-Penny Pennington
-Eric Clarke
and many more
Michael Kitces and Carl Richards discuss financial advising topics.
Suzanne Siracuse asks the questions nobody else asks, as influencers and interviewer collide in her new and truly unique podcast series The Big Reveal.
The “new advice value stack,” and how firms can use it to help maximize their own value propositions for their clients.
The Brighthouse Financial Insights Panel is a group of leading, independent experts providing powerful insights into the big challenges facing you and your clients.
Equipping independent financial advisors with the tips, insights, and knowledge needed to evolve in every aspect of his or her life
Powering Independence Podcast, insights and ideas for RIAs, presented by Dynasty Financial Partners. A podcast dedicated to presenting fresh ideas and best practices for the wealth management industry.
As an industry expert, Frank LaRosa provides guidance and advice on a host of topics from recruiting and transitions, succession planning, practice management, M&A and more.
Our goal is to unlock the challenges to reveal the opportunities and what it means to provide advice in the 21st century.
Our webcast is dedicated to helping our viewers get real insights by avoiding the cognitive dissonance of today’s media outlets and biased editorial filters.
Go behind the scenes with registered investment advisors and other related independent business model experts
As a nationally recognized recruiter and consultant to financial advisors, Mindy Diamond has unmatched experience in introducing advisors to the independent space.
The must listen-to podcast for investors, venture capitalists and financial advisors, with Tony Sirianni and Paul Dietrich.
An Introduction to Independence: 5 Key Episodes to Jumpstart Your Knowledgebase
Jay is an investment strategist, CERTIFIED FINANCIAL PLANNER™ and business consultant to financial advisors.
In this podcast business owners, entrepreneurs and executives reveal their top tips for success.
We interview top financial advisors and visionary voices to bring you the strategies, tips, and tools you need to make a difference in people’s lives.
A financial literacy and commentary show that features a number of investors, financial experts, professional athletes, business owners and more.
Join Sound Financial Group CEO Paul Adams and President Cory Shepherd every week, as they help you Design and Build a Good Life™.
The Kuderna Podcast, focusing on wealth in it's original meaning- a state of well being.
Timeless wisdom, actionable information you can use right now to make smarter investment decisions.
Made for and dedicated to those folks serious about their financial plan.
Latest News 
Advisor Moves 
Enforcement 
Opinion 
  • About Us
  • Contact Us
  • Advertise
  • Events
  • Careers

 get our newsletter

Industry focused content and breaking news.

SIGN UP

Contact Us

EMAIL US
1707 Post Oak Blvd.
#484
Houston, TX 77056

© 2021 AdvisorHub
  • |Terms of Use
  • |Privacy Policy
  • |Advertise
  • |Careers
  • Facebook
  • Linkedin
  • Twitter

Back to top