Dynasty Financial Partners, the St. Petersburg, Fla.-based support platform used by about 725 financial advisors, has chosen the Silicon Valley startup Allocate as a recommended private markets investment provider and platform for its network.
Dynasty’s decision comes as many registered investment advisors are considering how to incorporate private-market investing for clients, particularly amid piqued interest spurred by pending public offerings by SpaceX, OpenAI and Anthropic.
Dynasty has been working with Allocate since 2022, said firm co-founder and CEO Samir Kaji. The new setup will elevate Allocate to Dynasty’s advisors, enabling them to either invest clients through a curated list of options or create their own investment mix for one or multiple clients.
“We’re still very early in the adoption phase,” Kaji said. “If you look at the average RIA, they’re about 3% in alts. Let’s say it grows to 10%. That’s $3.7 trillion moving over. We’re helping to ease the friction of actually enabling that next trillion dollars of flows.”
Dynasty offers other private-market investing options for advisors, according to a spokesperson. But Allocate will be a preferred vendor and will work with Dynasty to evolve and update the products.
“Dynasty has partnerships with multiple alternatives marketplaces and private market solutions providers,” the spokesperson wrote via email. “This expanded partnership with Allocate solidifies them as a preferred partner to Dynasty and its network of advisors for private market access, custom fund services, and data management solutions.”
Kaji co-founded Palo Alto-based Allocate after spending over a decade at First Republic Bank and Silicon Valley Bank, where he specialized in private market investing.
One priority was to create a curated platform of private-market investment options, rather than “a marketplace of 1,000 funds” with a “huge dispersion of returns.” A second was to create a more streamlined investment process from subscribing to a fund to doing a fast cash flow analysis for clients.
“It’s really modernizing the technology on top of being able to offer these hard-to-access opportunities,” he said.
Kaji said advisors can invest clients in single opportunities through Allocate’s marketplace, which has minimums as low as $75,000. The more common option for Dynasty advisors, he said, will be to create a basket of private fund investments across one or more asset classes for clients, similar to a “model portfolio approach.”
“That is a huge trend within wealth management, as it’s become clear clients don’t want to hear from their advisor 20 times a year with different deals,” Kaji said. “It’s just too much, and almost violates that trusted fiduciary relationship between the two sides.”
Allocate earns fees from clients investing in its products. It also charges a subscription fee for advisors to use its centralized platform to monitor and track clients’ investments and pull in information from other data sources.
There is no shortage of private market options for RIAs, as providers clamor to be the solution of choice.
On Monday, Birmingham, Ala.-based RFG Advisory entered into a partnership with private market fintech iCapital to give its advisors access to investments, including private equity, private credit, hedge funds and structured investments. iCapital’s platform is designed for “single sign-on” and unified viewing across investment options.
During a BNY INSITE conference in Colorado last week, the CEO of ETF issuer WisdomTree, Jonathan Steinberg, said the firm is focused on ETFs with private market exposure that will be the next evolution of the investment option, vastly easing the path for advisors and retail investors to engage in the market.
