Larger RIA firms growing fastest, IAA finds

Larger RIA firms growing fastest, IAA finds
There are now almost 14,000 RIAs registered with the SEC, and the number of clients they serve grew 17% in 2020, to 60.8 million
JUN 28, 2021

Advisers with more than $100 billion in assets experienced gains in assets under management of more than 14% annually over the past five years, far ahead of smaller advisers, according to a report on the adviser business by Investment Adviser Association and National Regulatory Services.

RIAs registered with the Securities and Exchange Commission now number almost 14,000, the report said. They manage $110 trillion in assets, and the number of clients they serve grew 17% in 2020, to 60.8 million.

In 2020, 59.8% of advisers served individual clients, the report found. Aside from investment companies and business development companies, private funds and other pooled vehicles were the second most common client type, with 38.7% of advisers having clients of that type.

The three most common types of institutional clients are pension and profit-sharing plans, charitable organizations and corporations. Roughly one-quarter of advisers provide services to each of these client types.

Compared to 2019, adviser offices were more likely to be in southern states and less likely to be in traditional financial centers.

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