The forces driving the current wave of RIA consolidation are often framed around succession and capital, but according to Lou Maiuri, chairman and group CEO of AssetMark, the deeper catalyst is something less discussed: complexity.
“Several forces are converging, but complexity is the most underappreciated one,” Maiuri said. “Succession planning and capital availability matter, but what’s really changing the equation is what clients now expect from advice.”
In an interview with InvestmentNews he pointed to a shift in client expectations, where portfolios, tax considerations and planning demands have all become more sophisticated and interconnected: “Delivering that well requires infrastructure: people, technology, and operating discipline that many firms can’t build organically. For those firms, M&A becomes a way to acquire capability, not just scale.”
From AssetMark’s vantage point, Maiuri said firms are increasingly using consolidation to access shared capabilities rather than simply to gather assets.
“Firms [are] scaling not simply to grow assets, but to gain access to shared infrastructure, including tax capabilities, portfolio implementation, and technology that allows them to serve more complex client needs without sacrificing consistency.”
Still, whether consolidation benefits end investors depends on intent.
“Whether consolidation improves advice depends on why firms are consolidating. If the goal is financial engineering alone, investors may experience disruption or a loss of continuity,” Maiuri said. “But when consolidation is used to raise the quality and consistency of advice… outcomes can improve.”
Ultimately, he argues that purpose matters more than size. “Clarity beats scale.”
As firms grow, the question becomes whether scale enhances or detracts from the client experience.
“Scale can improve outcomes when it’s used deliberately to fund capabilities that are hard for individual firms to sustain on their own,” Maiuri said, pointing to areas such as tax expertise and operational controls.
At its best, he added, scale delivers consistency. “Clients get the same quality of advice regardless of who on the team is involved.”
But there are risks.
“Scale introduces trade-offs if it leads to rigidity or distance from the client,” Maiuri warned. “Investors should ask whether scale is helping advisors spend more time on planning and relationships, or less.”
He also pushed back on the notion that independence is tied to firm size. “Independence isn’t about being small. It’s about whether advice remains client-led.”
At the same time, client expectations are shifting toward a more integrated model of advice.
“Family office-style advice today is less about exclusivity and more about integration,” Maiuri said. “Investors should expect their advisor to connect investments, taxes, retirement income, and wealth transfer into a cohesive strategy.”
This marks a clear departure from the past.
“Five or ten years ago, portfolio construction alone might have been sufficient. Today, advice needs to account for tax impact, personalization, and life events in a much more intentional way.”
Execution has also moved to the forefront.
“It’s not enough to have a good plan. Implementation, documentation, and follow-through matter just as much,” he said, adding that this requires “an operating system behind the advisor, not just individual expertise.”
Growing use of private markets and tax-aware strategies is forcing firms to rethink how they operate.
“These aren’t plug-and-play solutions,” Maiuri said. “They require integrated workflows and disciplined oversight.”
That operational complexity is also reshaping how clients evaluate fees.
“What’s evolving isn’t simply downward pressure, but greater scrutiny,” he said. “As firms deliver more comprehensive advice… clients expect clarity around what they’re paying for.”
In this environment, firms need to clearly articulate their value across planning, portfolio construction and ongoing advice.
“Access isn’t the hard part anymore, execution is,” Maiuri said.
He emphasized that disconnected systems can exacerbate complexity.
“When tax management, public and private assets, and reporting live in disconnected systems, complexity compounds quickly. Integrated workflows matter far more than simply expanding the menu of available investments.”
As private markets become more accessible, Maiuri cautioned against a common misunderstanding.
“The biggest misconception is that access alone creates an advantage,” he said.
While private investments can play a role, they come with trade-offs that need to be clearly understood.
“Liquidity is the most obvious… valuation and transparency also work differently than in public markets, and fees and complexity tend to be higher.”
Rather than being a standalone solution, he positioned private markets as a complement within a broader portfolio.
“This is where the advisor’s role is critical… ensuring education, sizing, and expectations are aligned, rather than simply expanding the menu of available investments.”
Technology is reshaping the advisory role but not replacing it.
“Technology is reshaping the advisor’s role by removing friction from routine work… and creating more capacity for higher-value conversations,” Maiuri said, adding that at AssetMark the focus has been on using technology to push routine work into the background so advisors can focus on clients.
But some elements remain inherently human.
“What still requires a human touch is trust,” Maiuri said. “Clients don’t just need information. They need help making decisions they can live with over time.”
“The future of advice isn’t human or technology: it’s the two working together.”
As the industry bifurcates between large platforms and boutique firms, Maiuri said the decision ultimately comes down to fit and execution.
“The right model depends on the client’s needs and the firm’s ability to execute consistently,” he said.
Large platforms can offer breadth and integrated capabilities, while boutiques may deliver more focused service models. But neither guarantees better outcomes.
“The real question isn’t size, it’s consistency,” Maiuri said. “Can the firm deliver the same quality of advice across clients, over time, and through change?”
In a more divided industry landscape, he sees a clear dividing line for success: “The winners, both large or small, will be those that combine clarity of purpose with consistency at scale.”
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