RIA Acquirer Asset Growth Laps Non-Acquirers

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It should travel arsenic nary astonishment that registered concern advisors acquiring different firms person attained greater scale, arsenic measured by assets nether management, compared to those sitting connected the sidelines of the M&A frenzy. 

However, the important AUM maturation of predominant acquirers, minus marketplace gains, besides demonstrates the imaginable benefits of standard that consolidation has brought to immoderate acquirers, according to probe released this week.

In a survey published by Ritholtz Wealth Management’s probe arm, The Compound Insights, supported by WisdomTree and with information from RIA Growth Catalyst, researchers considered a beingness of 10,318 RIAs with $100 cardinal oregon much successful AUM. Of those firms, 9.1%, oregon 940 RIAs, had completed an acquisition betwixt 2019 and 2024, with alleged “serial buyers” engaging successful 3 oregon much deals, and “opportunistic buyers” acquiring 1 oregon 2 firms. 

According to the report, serial buyers experienced an mean three-year AUM maturation done 2024, excluding marketplace growth, of 92.8%, with a median maturation complaint of 82.5%. Meanwhile, opportunistic buyers experienced three-year AUM growth, excluding marketplace fluctuations, of 46.7% and a median maturation complaint of 16.2%. 

Those who sat connected the sidelines, however, saw an mean maturation of conscionable 8.5%. And erstwhile it came to the median rate, researchers really recovered a diminution successful AUM of 2.7%. 

“Scale compounds performance,” said Julien Baneux, laminitis and CEO of RIA Growth Catalyst and 1 of the report’s authors. “We’ve not conscionable seen this from the unthinkable maturation of these firms, but the mode others worth them arsenic seen by the precocious valuations.”

Baneux and the researchers noted the benefits of scale, ranging from advisors moving disconnected a centralized level to accrued marque scope and recognition, arsenic good arsenic entree to further services for some lawsuit maturation and expanded wallet share.

“Additional services make a nucleus astir wealthiness management,” Baneux said. “It adds a mosaic of worth supporting the high-net-worth and household bureau level of clientele, which is yet wherever there’s a batch of focus—serial acquirers are truly capable to beryllium seen arsenic a harmless manus for this clientele.”

The findings were drawn from a operation of nationalist SEC filings and information from RIA Growth Catalyst to analyse maturation rates. Co-authors included Mark Bruno, managing manager and caput of strategical advisory astatine Emigrant Partners, and Matt Cerminaro, co-founder and main merchandise serviceman astatine Exhibit A, which creates customized charts for fiscal advisors.