RIA firms are in the midst of one of the most significant transformation cycles within the industry. As private equity investments and consolidation accelerate, firms need to make a decision: scale rapidly or remain fiercely independent. The latest Investment Adviser Industry Snapshot cites record growth for RIAs in 2024 across key metrics including: 

  • The number of SEC-registered advisors reached 15,870

  • Assets under management hit $144.6 trillion 

  • RIAs serve over 68 million clients¹ 

At the same time, wealth creators are seeking out differentiated advice and services — whether that’s personal wealth management, business ownership services, impact investing or preserving wealth for their family and legacy. In this time of consolidation, aggregators and independents weigh their options when it comes to scale and growth levers including technology solutions, M&A, the evolving role of private equity, and the cultural and operational implications of these choices.

Scale and rising client expectations add operational complexity for RIAs

Client expectations have shifted decisively toward deeper insights, faster response times and a more holistic advisory experience. Many high- and ultra-high-net-worth clients now expect advisors to model private market exposures, understand multi-generational households and cash-flow patterns, and deliver transparent, unified reporting across every account, custodian and asset class. Adding to this challenge is an operational load on RIA firms that is rising as fast as client demands. Non-clerical RIA staff surpassed one million employees in 2024,1 yet firms still cite capacity constraints and advisor shortages as one of their biggest barriers to growth.2

Attendees at our 2025 RIA Summit shared that achieving scalable growth often results from do these three things well:

  • Ongoing modernization of their data and technology foundations

  • Pursuing inorganic growth deliberately, not opportunistically

  • Evaluating outside capital investments, including private equity, with a focus on culture and long-term alignment

Private equity’s expanding role in RIA growth

Private equity continues to reshape the RIA landscape, bringing capital, operating discipline and an institutional structure to firms that were often founder-driven in the past. Between July 2024 and July 2025, the number of PE-backed RIAs rose 16%, climbing from 255 to 295 firms, while total AUM controlled by PE-owned RIAs climbed 14% to nearly $6.0 trillion.3 Globally, private equity and venture capital deployed $20.29 billion into asset- and wealth-management deals in 2024 — the highest level in three years.4

For some firms, PE accelerates transformation by providing:

  • Funding for technology solutions and emerging technologies like AI that can improve workflows and client experience 

  • Operational expertise in governance, recruiting and organizational design

  • Faster inorganic growth, particularly for firms building out multiple locations or capabilities

Still firms at our RIA Summit also mentioned some of the downsides of private equity including the potential for tension between growth goals and thoughtful client stewardship. The core question for independents then becomes whether a firm’s culture and operating maturity are ready for institutional ownership, or whether the investment will strain the firm more than it strengthens it.

Is M&A a catalyst or a cultural risk?

M&A remains one of the more attractive options for RIAs in growth mode. The industry appears to be headed for even more consolidation: analysts estimate as many as 1,500 “significant transactions” will occur between now and 2029 — potentially impacting 20% of all wealth and asset-management firms.5 

The M&A report from Oliver Wyman and Morgan Stanley states,  “Analysts see dealmaking being driven by ‘four Cs’: cutting costs through scale, adding client segments and geographies, adding capabilities, and accessing either part-time or permanent capital to keep funding the business.”5 One firm at the RIA Summit shared that in their experience, M&A can “be costly, disruptive and endanger culture.” While M&A can accelerate growth, it can come at a cost.

Choosing the best path forward

Firms that attended our RIA Summit are focused on scaling with intention and clarity. Even though their paths to growth vary, they all believe success depends on having a sound operating model, modern tech infrastructure and a culture strong enough to absorb change. With these foundations in place, firms can pursue growth on their own terms and deliver a differentiated client experience at scale.

References

  1. Investment Adviser Industry Snapshot 2025, Investment Adviser Association, 2025.

  2. The looming advisor shortage in US wealth management, McKinsey & Company, 2025.

  3. Private Equity Ownership in the RIA Space – 2025 Trends, AdvizorPro, September 2025.

  4. Private equity deals in the asset management sector hit 3-year high, S&P Global Market Intelligence, February 2025.

  5. Report: 20% of Wealth, Asset Managers to Be Acquired by 2029, wealthmanagement.com, September 2025.