As the relentless pace of wealth generation makes growth a priority for wealth firms, RIAs are looking to get ahead with reach and scale, according to research from ISS Market Intelligence.
The report found that in response to increased wealth creation, RIAs are dedicating more resources to new business development and asset growth.
With an eye on prospecting, client engagement, and practice management support, RIAs are looking to expand their market reach, targeting next-gen clients and preparing for the avalanche of wealth transfers set to occur over the next two decades.
Consolidation in the RIA channel remains a dominant theme, the report said, as M&A activity and the pursuit of scale show few signs of slowdown. Despite prevailing economic conditions, consolidation is expected to persist, with aggregators and super hybrid RIAs likely to figure heavily in shaping the industry's future.
The importance of size and scale in the current market is clear from the growth of mega-RIA firms. Ranging from large RIA practices to super hybrid entities controlling billions of dollars in assets, they have emerged to represent prime targets for asset managers and vendors seeking strategic partnerships.
Given the unfettered burgeoning of the RIA sector, with more and more firms crossing the billion-dollar AUM threshold, fintech firms and platform providers are also tightening their focus on these wealth whales.
The research highlighted fintech’s pivotal role in reshaping the RIA marketplace. Technological advances have empowered advisors and RIAs by providing broader choices, multicustody capabilities, and improved integration, enabling them to scale their practices efficiently.
Amid the flurry of consolidation and M&A, the report also underscored the rise of enterprise RIAs with centralized assessment points.
As the distinctions across distribution and advice channels also begin to blur, RIAs are starting to converge with other channels as they adopt fiduciary-like standards, evolve into team practices, and target affluent clients.
Mercer, Focus Partners Wealth, Mariner, Creative Planning and Captrust top the leaderboard tracking AI search results for RIA firms.
"We believe this model will help younger investors – and any investors who value a hybrid advice experience,” said Ryan Robson, principal at Edward Jones.
Conte Wealth Advisors reportedly has $1.4 billion in client assets and 20 advisors.
The Cleveland-based RIA's latest tie-up extends the firm's national footprint into the Golden State, where opinions continue to be split over a contentious billionaire wealth tax proposal.
Meanwhile, Cetera has welcomed a family-run practice from Commonwealth, and a Merrill advisor joins an existing UBS team in Connecticut.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
