Why advisors need to up their service game for high-net-worth and UHNW clients

As the US wealth management industry braces for a historic $105 trillion intergenerational wealth transfer, advisory firms are rapidly expanding their service offerings to attract and retain high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients, according to new research from Cerulli Associates.

Cerulli projects that by 2028, advisor-managed HNW assets will exceed $30 trillion, growing at an annual rate of about 9.3%. This surge is prompting firms to move upmarket, investing in broader and more sophisticated services to meet the increasingly complex needs of wealthy households.

“Across the wealth management industry, the climate is ripe for practices looking to move upmarket, and firms are making this move by investing in and expanding their service offerings,” said Andrew Larsen, wealth management analyst at Cerulli. He noted that practices focused on HNW investors have “been adding more comprehensive services at a rapid pace over the past several years to accommodate their clients’ nuanced needs.”

The average number of services offered by HNW-focused practices rose to 12 in 2024, up from 10 in 2017. While asset allocation, basic financial planning, and cash management remain the most common, there has been notable growth in areas such as trust administration, private banking, and estate planning.

In 2024, 61% of HNW practices provided trust administration and trustee services, up from 42% in 2017, while private banking services jumped to 59% from 34% over the same period. Estate planning offered in-house also increased, reaching 73% of practices.

Cerulli’s research highlights that wealthy investors place a premium on comprehensive, “white glove” service experiences. The ability to deliver a wide range of tailored solutions – including tax planning (with 38% of HNW practices offering tax planning and compliance services in 2024), philanthropic guidance (81% in 2024), and other family office-style services – is becoming a key differentiator for advisors seeking to win and keep HNW clients.

For practices looking to capture more of their clients' assets, the stakes are high. According to Cerulli, family offices command an estimated 74% of clients' total walletshare, compared to 70% for RIAs, 62% for wirehouses and other broker-dealers, and 55% for private banks and trusts.

“Wealthy investors have more complex service demands than the average client, and these needs are a deciding factor in their choice of advisor,” Larsen said. He added that practices able to reliably scale these offerings “will have more success attracting HNW clients – and gaining their trust.”

The report also notes that as competition intensifies, firms are increasingly insourcing services that were previously outsourced, and adopting alternative fee structures such as separate fees for financial plans, retainer fees, and subscription models. This shift is designed to support scalable delivery of advanced planning, trust, and private banking services, while maintaining operating margins.

Alternative investments are another area of focus. Eighty-one percent of advisors surveyed agreed that offering alternatives helps differentiate their practice and move upmarket. Providing recommended lists, education, and due diligence support for alternatives are among the most popular ways home offices are assisting advisors.

"[Advisors who respond to growing deman for alternatives] also may be better able to build multigenerational relationships: 54% of advisors agree that by offering alternatives, they can better extend client relationships across multiple generations," the report said.