Fee-only RIA firms are growing at a healthy clip

The total number of advisory firms with a fee-only model has risen 20% since 2019, according to an analysis of the latest data from the SEC.

There are many familiar names atop the InvestmentNews 2021 rankings of the largest fee-only advisory firms, but the broader business model continues to welcome newcomers at a rapid clip.

The total number of advisory firms with a fee-only model has risen to 2,663, according to an analysis of the latest data from the Securities and Exchange Commission. That’s up from 2,215 firms in 2019, an increase of 20%.

Fee-only firms analyzed by InvestmentNews have at least $100 million under management and are based in the United States. In addition, fee-only firms primarily serve individuals with investment management and financial advice, they do not employ representatives of a broker-dealer or insurance company, and they do not charge commissions.

Almost all (98%) of these firms charge fees based on a percentage of assets under management but may also charge fixed fees (73% of firms), hourly rates (60%) or performance-based fees (6%).

Not only is the fee-only business model attracting more firms, but the firms themselves are building larger books. While adviser head count lagged firm growth over the past two years, rising 18% to 18,716 advisers, and the median fee-only firm has employed only four advisers since 2019, total assets under management rose 42% to nearly $2.5 trillion over the two-year span. The median firm grew its assets 16% to $294 million.

While broad market performance has helped, fee-only firms have also grown organically. Since 2019, the number of accounts at these firms has risen 31% to more than 3.1 million. Over that time the average account balance has also nudged up from $724,000 to $784,000, an increase of 8%.

Although 2020 data is difficult to compare due to extreme market volatility and delays in regulatory filings, the year without offices may have encouraged advisers to take up the business model and the independence that often comes with it.

According to Echelon Partners, there were 537 RIA breakaways in 2020, down from a peak of 670 in 2019 but higher than any other year for which data were available. And although recruiting activity was slower overall during the year, the RIA channel led in net gains, rising 20% relative to 2019.

Growth in the RIA channel, particularly the strict fee-only model, stands in contrast to the broker-dealer landscape, which is consolidating. According to the latest data from industry self-regulator Financial Industry Regulatory Authority Inc., the number of registered broker-dealer firms dropped to 3,435, down from 4,455 at the start of the decade.

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			Total		Discretionary		Nondiscretionary
Rank	Firm	Phone/Website	Assets ($M)	Accounts	Assets ($M)	Accounts	Assets ($M)	Accounts	Employees
1	Cambridge Associates 125 High Street Boston, MA 02110-2112	617-457-7500 linkedin.com/company/6987	$238,536	513	$35,007	108	$203,529	405	1,011
2	Fisher Asset Management 5525 NW Fisher Creek Drive Camas, WA 98607-9911	800-851-8845 retirewithfisher.com	$159,612	166,694	$159,612	166,694	$0	0	2,329
3	Hall Capital Partners One Maritime Plaza 6th Floor San Francisco, CA 94111	415-288-0544 hallcapital.com	$48,055	182	$19,355	79	$28,699	103	172
4	Silvercrest Asset Management Group 1330 Avenue of the Americas 38th Floor New York, NY 10019-5400	212-649-0600 silvercrestgroup.com	$27,819	1,263	$20,650	1,238	$7,169	25	146
5	Jasper Ridge Partners LP 201 Main Street Suite 1000 Fort Worth, TX 76102	817-333-0027 jasperridge.com	$27,480	47	$27,094	40	$387	7	92
6	Moneta Group Investment Advisors, 100 South Brentwood Blvd. St. Louis, MO 63105	314-726-2300 monetagroup.com	$27,418	29,892	$13,836	8,090	$13,582	21,802	370
7	Comprehensive Financial Management 720 University Avenue Suite 200 Los Gatos, CA 95032-7606	408-358-3316	$22,758	39	$22,758	39	$0	0	33
8	BBR Partners 55 East 52nd Street 18th Floor New York, NY 10055	212-313-9870 linkedin.com/company/bbr-partners	$20,708	3,700	$18,071	3,600	$2,637	100	130
9	Pathstone Family Office 10 Sterling Blvd Suite 402 Englewood, NJ 07631	201-944-7284 linkedin.com/company/pathstone-family-office	$19,598	11,457	$13,511	9,628	$6,087	1,829	198
10	Summit Rock Advisors 9 West 57th Street 12th Floor New York, NY 10019	212-993-7150 summit-rock.com	$19,597	172	$9,650	127	$9,947	45	65
11	Tiedemann Advisors, 520 Madison Avenue 26th Floor New York, NY 10022	212-396-5900 linkedin.com/company/tiedemann-advisors	$18,415	382	$14,005	342	$4,410	40	126
12	Bahl & Gaynor Inc. 255 East Fifth Street Suite 2700 Cincinnati, OH 45202	513-287-6100 twitter.com/bahlgaynor	$16,409	2,464	$15,554	2,388	$855	76	29
13	Jordan Park Group 100 Pine Street Suite 2600 San Francisco, CA 94111	415-417-3000 linkedin.com/company/jordanpark	$15,791	3,104	$15,791	3,104	$0	0	88
14	Johnson Investment Counsel Inc. 3777 West Fork Road Cincinnati, OH 45247	513-661-3100 johnsonmutualfunds.com	$15,525	12,097	$15,307	12,078	$218	19	140
15	Oxford Financial Group 11711 North Meridian Street Suite 600 Carmel, IN 46032	317-843-5678 ofgltd.com	$14,819	9,447	$6,339	4,177	$8,481	5,270	117
16	Boston Private Wealth One Federal Street 30th Floor Boston, MA 02110	617-223-0200 instagram.com/bostonprivate_official	$14,428	13,951	$13,787	10,889	$640	3,062	144
17	Aspiriant 11100 Santa Monica Blvd Suite 600 Los Angeles, CA 90025	310-806-4000 aspiriant.com	$13,905	9,137	$11,519	7,336	$2,386	1,801	169
18	Appleton Partners Inc. One Post Office Square 20th Floor Boston, MA 2109	617-338-0700 appletonpartners.com	$12,432	6,529	$12,432	6,529	$0	0	54
19	Financial Counselors Inc. 5901 College Boulevard Suite 110 Overland Park, KS 66211	800-615-2536 fciadvisors.com	$12,404	12,717	$11,314	11,857	$1,090	860	65
20	Cresset Asset Management 444 W. Lake Street Suite 4700 Chicago, IL 60606	312-429-2400 linkedin.com/company/cresset-capital	$11,677	6,091	$11,571	5,973	$106	118	146
21	IEQ Capital 950 Tower Lane Suite 1800 Foster City, CA 94404	650-581-9807 ieqcapital.com	$11,592	784	$11,247	773	$345	11	71
22	EP Wealth Advisors 21515 Hawthorne Blvd Suite 1200 Torrance, CA 90503	310-543-4559 epwealth.com	$11,225	20,782	$10,911	20,413	$314	369	160
23	Wealthspire Advisors 521 Fifth Avenue 15th Floor New York, NY 10175	212 973-1200 https://twitter.com/wealthspire	$10,943	3,337	$10,758	3,296	$185	41	144
24	Loring Wolcott & Coolidge Fiduciary Advisors LLP 230 Congress Street Boston, MA 02110-2437	617-523-6531 sustainabilitygroup.com	$10,566	3,054	$10,500	3,039	$66	15	96
25	W.E. Family Offices 701 Brickell Avenue Suite 2101 Miami, FL 33131	305-825-2225 linkedin.com/company/we-family-offices	$10,201	86	$0	0	$10,201	86	46
26	Savant Capital 190 Buckley Drive Rockford, IL 61107	815-227-0300 linkedin.com/company/savant-wealth-management	$9,591	6,580	$9,591	6,580	$0	0	205
27	Fiduciary Counselling Inc. 2000 Wells Fargo Place 30 East 7th Street St Paul, MN 55101-4930	651-228-0935	$9,116	1,608	$3,436	1,381	$5,680	227	76
28	Homrich & Berg Inc. 3550 Lenox Road, NE Suite 2700 Atlanta, GA 30326	404-264-1400 linkedin.com/company/homrich-berg	$8,929	11,081	$7,819	10,893	$1,110	188	125
29	Ballentine Partners 230 Third Ave Suite 6 Waltham, MA 02451	781-314-1300	$8,673	4,673	$6,390	2,763	$2,283	1,910	85
31	Brighton Jones 2030 1st Avenue 3rd Floor Seattle, WA 98121	206-258-5000 facebook.com/brighton-jones-106255223161	$8,443	2,272	$8,355	2,267	$88	5	150
32	Mill Creek Capital Advisors 161 Washington Street Suite 1500 Conshohocken, PA 19428	610-941-7700 millcreekcap.com	$8,051	355	$7,469	345	$582	10	35
33	Evoke Wealth 10635 Santa Monica Blvd. Suite 240 Los Angeles, CA 90025	424-372-1777 evokeadvisors.com	$7,704	1,774	$7,653	1,753	$51	21	34
34	Lido Advisors 1875 Century Park East Suite 950 Los Angeles, CA 90067	310-278-8232 linkedin.com/company/126294	$7,692	8,225	$7,270	8,013	$423	212	83
35	CV Advisors 19495 Biscayne Boulevard Suite PH1 Aventura, FL 33180	305-358-5990 cv-advisors.com	$7,661	1,124	$643	141	$7,018	983	47
36	Ferguson Wellman Capital Management, Inc. 888 SW 5th Ave Ste 1200 Portland, OR 97204	503-226-1444 twitter.com/fergusonwellman	$6,855	3,341	$6,855	3,341	$0	0	49
37	Pinnacle Associates Ltd. 335 Madison Avenue Suite 1100 New York, NY 10017	212-652-3200 pinnacleinsights.org	$6,658	4,604	$6,658	4,604	$0	0	58
38	Wetherby Asset Management 580 California St. Eighth Floor San Francisco, CA 94104	415-399-9159 wetherby.com	$6,572	3,865	$6,127	3,759	$445	106	70
39	Churchill Management Corp 5900 Wilshire Blvd. Suite 400 Los Angeles, CA 90036	323-937-7110 twitter.com/churchill1963	$6,567	17,431	$6,450	16,597	$117	834	57
40	Adviser Investments 85 Wells Avenue Suite 109 Newton, MA 02459	617-321-2200 linkedin.com/in/jeff-demaso-cfa-702a904	$6,541	10,767	$6,541	10,767	$0	0	93
41	Seven Bridges Advisors 9 West 57th Street 29th Floor New York, NY 10019	212-490-6320 sevenbridgesadvisors.com	$6,407	151	$2,749	26	$3,658	125	25
42	Valeo Financial Advisors 10 W. Carmel Dr Ste 400 Carmel, IN 46032-3357	317.218.6000 twitter.com/valeofinancial	$6,392	12,928	$4,869	8,845	$1,522	4,083	99
43	Frontier Asset Management 50 East Loucks Street Suite 201 Sheridan, WY 82801	307-673-5675 frontierasset.com	$6,348	4,331	$1,584	4,159	$4,764	172	43
44	Ropes Wealth Advisors Prudential Tower 800 Boylston Street Boston, MA 02199-3600	617-235-4260 ropeswealthadvisors.com	$6,331	2,986	$6,192	2,945	$139	41	33
45	East End Advisors 610 Fifth Avenue 5th Floor New York, NY 10020	212-218-8137	$6,297	36	$1,061	18	$5,236	18	17
46	The Bollard Group One Joy Street Boston, MA 02108	617-720-5800 spincap.com	$6,101	707	$5,891	655	$210	52	33
47	Seven Post Investment Office One Montgomery Street Suite 3150 San Francisco, CA 94104-4505	415-341-9300 sevenpost.com	$6,066	179	$5,738	169	$328	10	19
48	Brownson Rehmus & Foxworth Inc. 200 S. Wacker Drive Suite 2300 Chicago, IL 60606-5864	312-346-5850 brfadvisors.com	$6,025	2,520	$0	0	$6,025	2,520	42
49	Altair Advisers 303 W. Madison St. Suite 600 Chicago, IL 60606	312-429-3000 altairadvisers.com	$6,024	748	$1,856	406	$4,168	342	53
50	Choate Investment Advisors Two International Place Suite 3000 Boston, MA 02110	617-973-4900 https://twitter.com/choateia	$5,741	2,382	$5,078	2,226	$663	156	14