Roughly half of Mercer Advisors' net new assets in the first half of 2026 came through custodial referral programs, according to an S&P Global Ratings report published on the RIA's new credit rating.  

“We believe the company's high reliance on the custodian referral programs could limit margin expansion, although its recent diversification into other channels could help. During the first half of 2026, approximately 50% of Mercer's net new assets were sourced through the custodial referral channel,” wrote S&P Global on Sept. 9. “While the channel has been a steady source of asset growth historically, the use of it requires the company to pay referral fees to the custodian partners.” 

Mercer has $111 billion in client assets. The RIA’s custody is concentrated with its two largest referral sponsors — Schwab holds $57.7 billion of Mercer's regulatory assets and Fidelity holds $20.9 billion, according to Mercer’s latest Form ADV filed Sept. 17. 

Schwab will raise the asset minimum for its client referrals to $5 million from $2 million on Jan. 5, 2027, after originally lifting the minimum from $500,000 last year. While some advisors have shared concerns of Schwab competing to keep more clients amid its growing in-house advisor teams, Mercer’s CEO welcomes the latest minimum hike. 

“The focus of our efforts with Schwab has more been on the segments where they really need us. So the majority of clients that we close through that program were already over $5 million, if not over $10 [million],” Mercer Advisors CEO Dave Welling told InvestmentNews. “We think that's a high area of need across their retail client base and interest, and it's where they've articulated they most need us, or where the partnership has the most benefits.” 

Schwab has said more than half of Schwab Advisor Network's (SAN) net flows come from referred clients with $10 million or more in investable assets. 

Growth, assets and debt 

S&P assigned a 'B' issuer credit rating to Mercer parent OG Crimson Parent Inc. ahead of a $1.9 billion refinancing Mercer announced last week: a $1.65 billion term loan B and a $250 million delayed draw term loan, alongside a $340 million revolver. Mercer expects the new loan's rate, 1.75 percentage points below its prior debt, to save $35 million to $40 million in interest in 2027, InvestmentNews reported. 

“We expect S&P Global Ratings-adjusted debt to EBITDA above 7x at the transaction's closing, with the company gradually reducing leverage after that amid strong organic growth and free cash flow. We also expect EBITDA interest coverage to improve through 2027, to 2x-3x from slightly below 2x at the transaction's closing,” S&P wrote. 

S&P put Mercer's organic revenue growth, excluding market returns, at 11% in 2025 and 6% in 2024, slightly ahead of peers. Welling told InvestmentNews the firm is adding more than $1 billion a month in new client assets and has hired close to 400 people in 2026. Welling said that Mercer completed 18 acquisitions in 2025, while S&P says Mercer has completed 119 since 2016. 

“Mercer is still meaningfully smaller than many wealth manager peers such as Creative Planning and Focus Financial, in terms of both billable AUM and absolute EBITDA levels,” added S&P.  

Mercer's majority owners include private equity firms Altas Partners, Genstar Capital and Oak Hill Capital, as well as Singapore's sovereign wealth fund GIC, according to S&P.  In June 2025, Mercer said 674 of its employees held equity in the firm. 

“Furthermore, [Mercer’s] revenue stream is more concentrated in private wealth-related services, whereas most of its rated peers maintain exposure to institutional, retirement, and 401(k) businesses,” said S&P’s note. “While institutional assets are often less sticky than private wealth assets, they do provide diversification and cross-selling opportunities that Mercer lacks.” 

Paying for referrals 

Mercer pays Fidelity's Wealth Advisor Solutions program 10 basis points a year on referred fixed income and 25 bps on all other referred assets, plus a $50,000 annual fee, per its Form ADV brochure. Schwab Advisor Network charges 26.25 bps on the first $2 million of referred assets, stepping down to 10.5 bps above $10 million, InvestmentNews has reported. 

Mercer joined the new Goldman Sachs Ayco referral program this year, which has also gained entry from RIA giants Wealth Enhancement and Creative Planning. Goldman Sachs was also lead left arranger on Mercer's recent loan refinancing as its main investment bank in the transaction.  

“We were invited to participate in [Goldman’s] referral program, which has shown some early good results, but it's very early,” said Welling. “When we joined the Fidelity program in 2019, it was already an existing program with existing velocity, there was motion. [Goldman] building it on their side, largely through the Ayco business referrals and particular situations, it's just it's a different program than some of the others that we participate in.” 

Schwab tightens as newcomers arrive 

Asset minimum changes to Schwab’s referrals come as several new client referral programs launch from other RIA custodians.  

Robinhood's TradePMR takes 25% of the gross revenue an advisor earns from referred clients and requires RIAs to manage at least $500 million. BNY Pershing charges a $50,000 annual fee and up to 30 bps on referred assets, according to a Kitces analysis. Betterment's pilot charges 0.25% a year on referred assets, while Altruist told InvestmentNews in 2025 that it aspires to build a referral network. 

"Mercer Advisors has a long track record of supporting new programs that have entered the market, such as E*Trade and TD Ameritrade in the past," a Mercer spokesperson told InvestmentNews in January.