RIA middle and back-office service provider Dynasty Financial Partners has shelved its plans to go public on the Nasdaq, according to four sources with knowledge of the situation.
Sources told Citywire that Dynasty is considering raising capital through the private markets. Dynasty works with 47 RIAs, which collectively manage $71.6 billion in client assets.
A Dynasty spokeswoman declined to comment.
Dynasty filed a Form S-1 with the Securities and Exchange Commission in January to formalize its IPO intentions. The company retained Goldman Sachs, JP Morgan, Citigroup and RBC as bookrunners and the renowned law firms of Sullivan & Cromwell and Davis Polk & Wardell as legal advisors.
While sources say IPO plans have been on hold, Dynasty plans to continue updating its Form S-1, leaving the door open for the company to pursue the IPO in the future.
Headquartered in St. Petersburg, Fla., Dynasty’s business model revolves around providing teams of ex-Wirehouse consultants with RIA transition support and ongoing business support for an ongoing fee in basis points. The company also operates its own TAMP, which it makes available to its network RIAs.
Dynasty has not yet reported its second quarter 2022 financial results, although the most recent earnings update indicates the company is profitable. Dynasty reported net income of $3.5 million and adjusted EBITDA of $4.6 million on revenue of $20.3 million for the first quarter of 2022.
The IPO market collapsed in 2022. Data compiled by FactSet shows that 92 companies went public in the first half of 2022, raising around $9 billion; 1073 companies went public throughout fiscal 2021, raising a total of $317 billion. The Renaissance IPO Index, which tracks the performance of recently publicly traded companies, is down more than 40% this year, significantly underperforming the S&P 500.
Dynasty’s regulatory filings indicated that the company had begun taking minority stakes in some of its network RIAs. Some RIAs that were sold were compensated with exchangeable bonds, which gave the bondholder the opportunity to exchange the face value of the bond for Dynasty common stock at an IPO at fair market value.
Founded and led by Chief Executive Shirl Penney (pictured), Dynasty is managed by family office Glick Family Investments, former American Express chief executive Harvey Golub, RIA tech giant Envestnet and Marty Bicknell, chief executive of Mariner Wealth, among others advisors, supported.
Note: This version of the story adds context that Dynasty plans to continue updating its Form S-1.
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