RIAs have continued their dramatic growth trend since the 2008 financial crisis caused reputational damage to investment banks and broker-dealers and eroded the public’s trust in them. RIA fee-based models accelerated since then and now capture the majority of the retail market, controlling $9.8 trillion in assets as of April this year with an annual growth rate of 12 percent. Investments in RIAs by private equity firms over the past decade have pushed that growth to new heights through consolidations and record-setting deals. For instance, Bain Capital and the Carlyle Group are final bidders for Wealth Enhancement Group at a valuation of about $7 billion, ranking at the top for a US private equity acquisition. Retail products and the distribution network offered by the RIA model continue to spur interest by private equity as a growth priority, especially now that the Labor Department has a proposed rule to allow 401(k) plans to begin investing in private markets. See PitchBook, “Bain and Carlyle battle for $7B Wealth Enhancement Group”
The growth of RIAs has also led to a record number of firms being registered with the SEC. There has been a 4.2 percent increase in the number of SEC registered investment advisers since 2024, with the latest tally being a total of 16,544 firms. According to FrontLine Compliance Founder and President Amy Lynch, the data supports the general trend of more consumers relying upon investment advisers for financial advice. She explains how the growth of retail advisers in particular has resulted from a larger aging population in the US, as well as the distribution of wealth, where you have pensions paying out more than they are taking in due to increased numbers of retirees. See ThinkAdvisor (free registration), “Number of RIAs Sets New Record: Report”
