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Dynasty Financial Partners has entered into an equity swap agreement with Abacus Global Management, a publicly traded alternative asset originator and manager that specializes in life insurance products.
As part of the equity swap, Abacus, which became a Dynasty partner firm in 2023 with the launch of its wealth management division, ABL Wealth, has acquired a minority stake in Dynasty and vice versa.
“Our investment in Abacus illustrates our confidence in their business model, the strength of their balance sheet, and the commitment of [Abacus CEO Jay Jackson] and the team to continue building out their wealth business,” said Dynasty founder and CEO Shirl Penney, in a statement.
Dynasty launched its equity swap program about six or seven years ago and has entered into agreements with a significant number of its large clients as a way to align interests between them. The firm does not take any controlling interest in the firms it acquires. The deal with Abacus was structured in the same way as others.
Abacus launched its wealth division in 2023 with Dynasty support and a plan to seed that offering by acquiring and rolling up RIAs under the ABL Wealth brand. It will provide those advisors with leads from both the inquiries the company receives and cash payouts from its life settlements business.
Last year, Abacus signed an agreement to acquire Carlisle Management Company SCA, a Luxembourg-based alternative asset manager with about $2 billion in assets under management, for $200 million. Dynasty Investment Bank advised Abacus on the deal. That was followed by Abacus’s acquisition of FCF Advisors, a New York-based asset manager with about $600 million in assets under management.
Both firms have become part of ABL Wealth and will provide investment strategies to advisors who eventually join the platform. Abacus has not made any RIA acquisitions thus far, but Jackson has been vocal about his intention to do so and the firm’s commitment to the wealth business.
Abacus receives some 10,000 inquiries a month from individuals who may not qualify to sell their policy but have other financial services needs. These leads are, on average, over age 55 and have $1 million of net worth, and serve as a differentiator to the company as it looks to attract RIAs.
Abacus went public in July 2023 via a Special Purpose Acquisition Company, merging with East Resources Acquisition Company. It now trades on the NASDAQ under the symbols “ABL” and “ABLLW.” The company purchases life insurance policies from consumers for cash.
In 2022, Dynasty sold minority stakes in the company to Charles Schwab and private equity firm Abry Partners. In 2024, it announced a minority capital raise from BlackRock, JP Morgan Asset Management and Schwab.
Dynasty now serves 57 partner firms across over $105 billion in platform assets.
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