7 Growth-Busting Mistakes RIAs Make

Dynasty Financial Partners and F2 Strategy, a wealth management technology provider, recently collaborated on a survey designed to discover how Dynasty affiliates have been performing in an industry environment with both heightened client demand and higher client expectations. The results, summarized in a newly released white paper, suggest that substantial growth and operational efficiency benefits are available for firms willing to embrace routine process outsourcing and a more technology-based approach to firm operations — especially when it comes to midsize firms seeking to unlock their next phase of growth. Report authors Bryce Carter and Doug Fritz say the growth improvements are especially evident for firms with assets under management between $300 million and $1.8 billion. In this middle market segment, a willingness to use outsourcing and technology partnerships has enabled enhanced efficiencies and fostered aggressive business growth, the authors find. One of the most striking results is the accelerated AUM growth and firm valuation for Dynasty-affiliated firms, Carter and Fritz suggest. Dynasty affiliates, they claim, are outperforming comparable RIAs by a notable margin. This growth, which the report quantifies at a nearly 8% higher compound annual growth rate over five years, demonstrates the tangible benefits of strategic partnerships in the independent advisory space, Carter and Fritz conclude. Furthermore, the data reveals that the average payout increase for independent advisors partnering with Dynasty is 42%, with many advisors expanding their gross income margin by 100% or more. See the accompanying slideshow for seven insights demonstrating how technology partnerships and outsourcing are propelling growth for midsize firms.