

FLX Distribution, a professional network technology platform, has raised $2.5 million in seed funding. RiverNorth Capital Management LLC led the round.
PRESS RELEASE
BASKING RIDGE, NJ, JULY 20, 2020 — FLX Distribution, the first and only professional network technology platform bringing together asset management firms and independent distribution professionals, today announced that it has closed a $2.5 million seed round, named two leading industry executives to its new Board of Directors, and added to its existing Advisory Board.
“The FLX vision of a new model of distributing investment offerings to wealth managers and financial advisors is a reality as we welcome new investors to our company, add to our stable of board-level executives, and add asset managers and distribution professionals to our platform,” said Brian Moran, FLX Founder and Chief Executive Officer. “The industry overall and end-user investors will benefit as FLX adds accessibility, entrepreneurial drive, and complete flexibility to the investment product distribution process.”
FLX Distribution’s innovative platform is addressing the challenges asset managers are facing in the delivery of their investment offerings to a changing marketplace. Membership in the FLX marketplace provides the opportunity for asset managers to adjust their distribution bandwidth based on demand while concurrently providing experienced distribution professionals and value-added solutions with a platform from which to represent a broad spectrum of leading firms.
Today’s news follows the June 12, 2020, FLX announcement that it added its first asset management firms to the platform – Ballast Equity Management, Blue Square Wealth, RiverNorth Capital Management, LLC, and Stadion Funds.
FLX said that it has closed its first outside financing, a $2.5 million seed round led by RiverNorth Capital Management, LLC and including six strategic, private investors. Terms of the transaction, which was significantly oversubscribed, and identities of the private investors were not disclosed.
Proceeds from the funding will be used for general corporate purposes, technology development, product launches, and related efforts.
Patrick Galley, Paul Hatch Named to Board of Directors
FLX also announced it has named two first members to its Board of Directors:
Paul Hatch, is UBS Group Managing Director, Northeast Divisional Director in Wealth Management. Among his previous roles, Mr. Hatch served as Vice Chairman of Morgan Stanley Smith Barney from 2012-2013, and head of Investment Strategy and Client Solutions. Mr. Hatch is a member of the Board of Directors of America’s Warrior Projects, and holds a Bachelor of Science degree in General Engineering and Political Science from the United States Naval Academy. He will join the Board effective August 1, 2020.
Patrick Galley, CFA, is Chief Executive Officer and Chief Investment Officer at RiverNorth Capital Management, LLC, an investment management firm founded in 2000. With $4.2 billion in assets under management as of May 31, 2020, RiverNorth specializes in opportunistic investment strategies in niche markets where the potential to exploit inefficiencies is greatest. RiverNorth is an institutional investment manager to registered funds, private funds and separately managed accounts. Mr. Galley received a Bachelor of Science degree from Rochester Institute of Technology. www.rivernorth.com
Fran Cashman Joins FLX Advisory Board
FLX also said that it added the newest member to its Advisory Board:
Fran Cashman is principal and founder of Mayfair Davie Consulting enabling asset and wealth management firms to address business and distribution strategy challenges. She is an experienced financial services executive with a 25+ year history of accomplishment having served as Executive Vice President and Global Head of Marketing and Communications and prior Co-Head of US Sales at Legg Mason. Her leadership and change management expertise include strategy, institutional and retail sales, marketing and communications. Ms. Cashman received a Bachelor of Science degree in Chemical Engineering and a Master of Science degree in Industrial Management from Georgia Tech. She is a trustee of the Georgia Tech Foundation, Loyola Blakefield and the Money Management Institute Gateway to Leadership.
About FLX Distribution
FLX Distribution is a financial technology company focused on asset management distribution. Launched in 2019, FLX is building the premier distribution option for asset managers searching for a cost-effective model to deliver their investment capabilities, and to provide every passionate, hardworking and talented distribution professional a path to independence. By altering the traditional asset management distribution model, FLX can help save millions in fixed costs and enable unshackled access to talented distribution professionals to ensure future innovation and growth.
Through an innovative professional network technology, FLX Distribution’s member-structured marketplace provides access, education and data to enable comprehensive financial services distribution solutions. FLX Distribution’s consultative approach to understanding its membership’s capabilities, goals, and objectives is illustrated in its flexible approach to customizing and tailoring solutions. The company’s innovative pricing strategy contributes to a broad and diversified membership having access to assembling strategic distribution solutions with unprecedented scale.