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)
Companies
~67,500
FragmentationConsolidating

U.S. Census Bureau 2022 CBP/Economic Census, NAICS 523940 (Portfolio Management & Investment Advice; 2017 codes 523920/523930).

Business model & economics

Revenue model
Recurring fees on assets under management
Recurring revenue
High — sticky AUM-based fees
EBITDA margin
20–35%
Capex intensity
Low
  • 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

High deal activity

Who’s acquiring

National RIA consolidatorsPE-backed wealth platformsBank & brokerage strategics

What’s driving deals

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

Verticals in this segment

  • 3.6.4.1Fee-Only Financial Planners

    Financial planners charging flat or hourly fees without commissions.

  • 3.6.4.2Independent RIA Firms

    SEC and state-registered investment advisors managing client assets.

  • 3.6.4.3RIA Aggregators & Platforms

    Companies acquiring and supporting independent RIA firms.

  • 3.6.4.4Wirehouse & BD-Affiliated Advisors

    Financial advisors operating within broker-dealer and wirehouse networks.

Find Investment Advisory & RIA acquisition targets

Search Acquisera’s index for companies classified under Investment Advisory & RIA (3.6.4) and build a targeted deal pipeline.

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