Page 22 - Investment Advisor - October 2021

RIA LESSONS & LEADERS

By Jeff Berman, Melanie Waddell and Janet Levaux

Breakaway Advisors Say They’re Happier

to Be Independent: Dynasty

Also, RIAs that took excess PPP loans in trouble, and firms continue

buying spree.

reakaway advisors and their cli-
ents are happier and the advisors
Bare making more income after
going independent, according to the find-
ings of the first Dynasty Financial Partners
breakaway survey that the firm said in
August it plans to conduct annually.
The advisors surveyed “were not shy
about discussing the obstacles they had
to overcome on the road to indepen-
dence,” the company said, pointing to
challenges cited that included a “steep
learning curve” and “building a business
nearly from scratch.”
But the owners of independent RIAs
said they would gladly face those and
other challenges of breaking away again
to secure the benefits they enjoy now,
according to Dynasty, noting the sur- they were able to convert more than pendence for reasons they have no trou-
vey was conducted online in July by 90% of their assets from their prior ble articulating,” Shirl Penney, Dynasty
SurveyMonkey. firms, while more than 50% had accu- CEO, said in a statement. “Bigger pic-
The survey’s results, however, were mulated well over 100% of their assets ture, given our over 10 years of experi-
based only on a small pool of participants through substantial growth, and 11 of ence working with many advisors to
that included 23 of the over 300 advisors the 23 advisors saw 90% or more of their transition their practices, we felt it was
at 46 independent RIA firms managing assets converted within the first year of time to start sharing our insights on
over $60 billion in assets on the Dynasty transition, Dynasty said. breakaway-advisor sentiment. We plan
network. The 23 advisors that responded In other survey findings, 96% said they to track this sentiment over time as an
have clients throughout the U.S. manag- had better relationships with their cli- industry resource.”
ing about $27 billion in assets collectively, ents since transitioning to independence. The initial drawbacks of indepen-
Dynasty said. Also, 91% of advisors saw an increase in dence just do not come close to compet-
Dynasty provides wealth manage- their net worth since going independent, ing with its benefits, according to John
ment and technology platforms for inde- said they had more freedom to focus on Sullivan, Dynasty’s head of network
pendent advisory firms. the unique needs of their clients, viewed development.
All of the advisors polled said they the technology at their firm superior to “These breakaway RIAs are helmed
had a greater opportunity to build equity what they had before going independent by entrepreneurs who know that every
value in their business after becoming and agreed their resource partners pro- transition comes with friction, and that
independent RIAs, had more control vided more value than what was available engaging transition experts and keep-
over their business decisions and found before going independent. ing the big picture — more customized
independence worth it and would do it “We verified what we had long been solutions, better client service, greater
all over again, according to Dynasty. hearing through the grapevine. That is, equity value — in view is imperative for Adobe Stock
Meanwhile, 15 of the 23 advisors said our breakaway advisors value their inde- success,” he said in a statement.

20 INVESTMENT ADVISOR OCTOBER 2021 | ThinkAdvisor.com