Wealthtech Weekly is a newsletter that keeps you updated on the latest news on wealth management technology including fundraises, M&A, hiring, & more. 

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BlackRock and JP Morgan Asset Management invest in Dynasty Financial Partners at $800m valuation (Business Times)

Dynasty Financial Partners, a provider of services to independent investment advisers, has secured minority investment from BlackRock and JPMorgan Asset Management, valuing the firm at around $800 million. The investment aims to support Dynasty's expansion, particularly in its investment banking and technology services. As the firms on Dynasty's platform grow larger and more sophisticated, so too do the deals they are executing, prompting the need for additional capital. Existing investors, including Charles Schwab and long-term supporters like the Glick family office, also participated in the round.

Cetera Acquires Protective Life’s B/D, RIA Business (WealthManagement)

Cetera Financial Group is set to acquire Concourse Financial Group Securities, adding 350 financial professionals overseeing $4 billion in managed assets and $12 billion in assets under administration. This acquisition is part of Cetera's strategy of integrating independent broker-dealers (IBDs) originally affiliated with insurance companies. Cetera CEO Mike Durbin sees this as a significant growth opportunity, aligning Concourse with Cetera Wealth Partners. The deal, expected to close in early 2025, follows Cetera’s history of acquiring assets from firms like Foresters Financial and Voya Financial, further expanding its presence in the wealth management space.

Farther Raises $72M in Series C Round, Crosses $5B AUM(Dakota)

Technology RIA Farther closed a $72M Series C funding round, bringing total f, the company reported in an October 10 press release. The investment round was co-led by CapitalG and Viewpoint Ventures and increases Farther’s post-money valuation to $542M. The firm aims to broaden its advisory network and wealth management platforms through the funding.

AI is coming for Wealth Management (FinancialTimes)

Wealth management firms are increasingly exploring how to incorporate artificial intelligence (AI) into their services, viewing it as both an opportunity and a competitive threat. AI has the potential to provide personalized financial advice at lower costs, expanding access to those previously excluded due to wealth thresholds. However, while AI-powered robo-advisers can recommend investments, they struggle with dynamic client interactions and understanding the personal nuances that drive financial decisions. Effective AI integration will require systems that work alongside human advisers, enhancing their decision-making rather than replacing them. Future developments in AI agents and large language models could lead to deeper, more personalized conversations between clients and AI platforms, potentially disrupting the industry. But until AI can fully bridge the gap between human understanding and machine learning, trust in human advisers will remain essential for critical wealth management decisions.

Watching:

Financial Advisors are Furious Over New Ad Campaign (YouTube)