New RIA with Dynasty support pitches M&A with ‘true ownership’ concept

A recently established registered investment advisory firm, TritonPoint Partners, situated in Chevy Chase, Maryland, has developed its own mergers and acquisitions arm in collaboration with Dynasty Financial Partners. This venture, TritonPoint Wealth, an affiliate under common ownership with another RIA managing $1.8 billion in assets, officially commenced operations last month with strategic support from Dynasty Investment Bank and a minor investment by Dynasty, as confirmed in a regulatory filing by the new RIA. The establishment of TritonPoint Partners in 2023 followed Goldman Sachs’ decision to sell the remaining assets of United Capital in Goldman Sachs Personal Financial Management to Creative Planning. During this transition, as the team pivoted to form an independent RIA with Dynasty’s services around a year and a half ago in the midst of advisor departures and ensuing legal disputes, the CEO, Harold Hughes, reflected on the concept of “true ownership” as a driving force for their endeavors. According to Hughes, who brings over thirty years of industry experience to the table, the newfound motivation stemmed from a desire to create something superior in response to past challenges. “Like most people who have been burned by something, you get motivated to build something better,” he remarked.

The ownership structure of TritonPoint Partners consists of individuals like Hughes, Dynasty’s non-controlling minority stake, Greg Blake, Chief Growth Officer of TritonPoint Wealth, CEO Andrew Schiff, Chief Operating Officer Deatra Vailes, and Chief Investment Officer Will Sterling. By combining a unique business model with financial backing from Dynasty, a powerful industry player boasting 57 RIAs with 500 advisors and over $105 billion in assets under administration, TritonPoint Partners aims to navigate the competitive landscape of wealth management. The decision to forego plans to go public in 2022, which involved deals to sell minority stakes to private equity firms Abry Partners and Charles Schwab, in favor of backing TritonPoint exemplifies Dynasty’s interest in securing a strong position in the recruitment battles for independent advisors in the industry.

The modern trend among independent advisory teams to align with larger enterprises offering holistic support for operational, client service, compliance, and technology needs in exchange for a combination of cash and equity reflects an evolving landscape. Addressing this shift in dynamics, Mike Byrnes, of Byrnes Consulting, noted the necessity for advisors to explore new approaches as market dynamics evolve. Byrnes emphasized the value proposition pioneered by TritonPoint by highlighting how equity growth tends to outpace individual advisor growth, aligning with the increasing demands from clients for a diversified range of services beyond traditional portfolio management.

TritonPoint’s recruitment strategy involves discussions with numerous prospective teams, with one currently in the process of integrating into the new RIA structure. This aligns with the company’s vision of achieving $200 million in annual revenue. Notably, TritonPoint’s ownership model steers clear of conventional antidilution clauses in favor of providing additional equity incentives linked to advisors’ business growth. The emphasis on transparent ownership structures, clear incentives, and equity growth underscores TritonPoint’s commitment to fostering a collaborative and financially rewarding environment for incoming teams. Additionally, TritonPoint intends to collaborate with various custodians such as Raymond James, Charles Schwab, and Fidelity Investments, offering flexibility to advisors wishing to maintain brokerage business through external channels. This inclusive approach, alongside a unique ownership model, sets TritonPoint apart in the competitive landscape of wealth management, positioning it as an industry innovator poised for sustained growth and success.