RIAs’ growth opportunity expands

RIAs’ growth opportunity expands
The RIA industry has witnessed incredible growth in the past decade, but custodians, too, are looking to cash in on recent trends, like increased client access to alternative assets and digital currencies.
OCT 11, 2021

At this week’s InvestmentNews RIA Summit, growth took center stage — and that stage had better be large and reinforced.

One panelist cited an industry report that said the market has grown from about 6,600 investment advisers registered with the SEC in 2000 to more than 13,880 firms now. Among those are 851 wealth management firms with $1 billion or more in assets, 166 with $5 billion or more in assets, and 75 RIAs with $10 billion or more in assets. 

And as per Bruce Kelly’s reporting last Wednesday, “private equity managers are swarming around RIA firms with $500 million to $1 billion or more in assets, looking to buy and merge firms into increasingly larger networks. And because cash is cheap due to low interest rates, financing deals continues to be attractive.” 

But that growth opportunity isn’t limited to the RIA world. As these firms’ clients look for increased access to alternative assets and digital currencies, custodians hope to capitalize on that. Ben Harrison, managing director and co-head of wealth solutions at Pershing, said the firm has set up a digital currency and asset business to explore the future of custody, blockchain and crypto investing and how it happens for RIA clients. 

And Bernie Clark, head of advisor services and managing director at Charles Schwab, said, “We’re seeing tremendous growth in alternatives on our platform right now, it’s unprecedented, and I expect that’s going to continue.” 

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave