3.6.4Segment

Investment Advisory & RIA

Registered investment advisors and financial planning firms managing assets and providing advice to individuals and institutions.

4
Verticals

Overview

Investment Advisory & RIA covers registered investment advisors and financial-planning firms managing assets and advising individuals and institutions. It is the heart of wealth management — a vast, fragmented base of tens of thousands of advisory firms earning recurring fees on assets under management.

The RIA space is among the most actively consolidated markets in all of finance: aging advisor demographics, the value of scale and technology, and abundant private-equity capital have driven a roll-up wave led by national platforms (Creative Planning, Mariner, Mercer Advisors, Hightower). Recurring AUM fees and sticky client relationships make it a perennial acquirer favorite.

Market snapshot

Market size
~$373B
Growth
~5.5%CAGR (2017–22, nominal)
FragmentationConsolidatingEstimate

The heart of wealth management — a vast, fragmented base of registered advisory firms earning recurring fees on assets under management, and among the most actively consolidated markets in all of finance. Aging advisor demographics, the value of scale and technology, and abundant private-equity capital drive a roll-up led by national platforms (Creative Planning, Mariner, Mercer, Hightower). Revenue is AUM-based fees; a clean firm count isn't shown because the 2022 advisory code has no matching 2017-vintage firm data.

NAICS 523940. U.S. Census Bureau — 2022 Economic Census.

Business model & economics

Revenue model

Recurring fees on assets under management

Key economics

Recurring revenue
High

sticky AUM-based fees

EBITDA margin
20–35%
Capex intensity
Low

Characteristics

  • Vast, fragmented base of advisory firms.
  • Aging advisors and scale value drive the roll-up.
  • Recurring AUM fees and sticky relationships.

M&A deal context

Deal activityHigh

Who’s acquiring

  • National RIA consolidators
  • PE-backed wealth platforms
  • Bank & brokerage strategics

What’s driving deals

  • Aging-advisor succession driving sales.
  • Scale, technology, and platform value.
  • Abundant private-equity capital.

Verticals in this segment

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