The rapid expansion of the RIA channel is pushing captive firms to overhaul how they recruit and hang on to advisors, according to new research from Cerulli Associates.
Independent and hybrid RIAs have expanded assets under management at annualized rates of 10.9% and 12.2% over the past decade, the latest figures from Cerulli show.
Over the same period, their combined share of industry assets climbed from 21% in 2014 to 27% in 2024, driven largely by advisors leaving wirehouses, national and regional broker-dealers, insurance broker-dealers, and banks in search of more autonomy, ownership economics, and higher payouts.
“Advisor preferences clearly favor independence,” said Stephen Caruso, associate director at Cerulli. “71% of advisors say they would choose an independent channel if they were to switch. Additionally, 88% of independent RIAs say they are very likely to remain affiliated with their current firm over the next 12 months, and 97% indicate they would switch to another independent RIA if they did.”
That loyalty is unmatched across other channels and, in Cerulli’s view, points to structural advantages that resonate with advisors: meaningful control over the practice, flexibility in how they serve clients, and often an equity stake in the firm. While large broker-dealers are unlikely to replicate the pure RIA model, the report argues there are elements they can borrow as competition for experienced producers intensifies.
Cerulli estimated that about 9% of advisors, representing $3.1 trillion in assets, were expected to change firms in 2025. Separate projections call for 25,443 advisors to be “in motion,” with roughly two-fifths of those moves involving a switch across channels rather than a lateral hop to another firm with a similar model. In other words, the reshuffling is not just broker-dealers playing an insular game of musical chairs – it is a longer-term realignment of where advisors want to sit.
The message to broker-dealers is that payouts and upfront packages are not enough. Wirehouse advisors in particular cited day-to-day friction that undermines loyalty, including insufficient staff support, shifting compensation grids, and rising account minimums for new clients. National and regional broker-dealers reported fewer pain points, with culture, retirement programs, and training standing out as relative strengths.
Cerulli suggests several ways employee firms can fight back. One is giving advisors some form of economic stake in the enterprise, such as stock ownership or performance-linked equity awards, to mirror at least part of the ownership appeal of RIAs. Another is to invest in operational support and technology so advisors feel they can grow efficiently without fighting their own platforms.
The RIA boom is also changing how asset managers and home offices sell into the channel. The rise of consolidators and enterprise RIAs with centralized investment teams and in-house technology – a trend that might be starting to reverse, based on new RIA research from Fidelity – is creating a smaller number of more sophisticated buyers, prompting managers to lean more on key accounts coverage and product specialists.
Ultimately, Cerulli frames advisor movement less as a threat than as a sorting mechanism that rewards firms aligned with what advisors say they want.
“The evolution of the RIA channel highlights not only the competitive nature of advisor recruitment, but also the need for firms to proactively adapt their competitive positioning to align with what advisors seek: independence, autonomy, better support systems, and the ability to build long-term business value,” Caruso said.
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