How a swath of billion-dollar-plus RIAs are posing a threat to indie advisors
Forget the aggregators -- a specific segment of RIAs is gunning for mom-and-pop shops and wirehouses alike
Elmer Rich III
Good article. Systems research suggests that markets eventually trend towards the 80%/20% rule. No need to believe the RIA market will be any different as it matures. A few big winners, shrinking middle sized firms and many small niche firms.
We are marketing and growth consultants and see how difficult it is for a firm to move up a tier. It’s much easier to slip down a few rungs.
We are also M&A consultants and see the consequences of disinvestment in growth when owners retire. Disinvestment in growth substantially cuts the value of a firm at sale. Not pretty.
Note: Allow us to brag and also say we were noted as one of the Top 100 marketers (in all industries) for follow on Twitter. Shameless self-promotion.
Elmer Rich III
Short coda to our note above. A billion dollars AUM is not that much anymore and especially going forward, as the investment market grow, likely, exponentially.
Related Moves
Plague of failed hires at strapped RIA firms 'come back to bite them,' making the process of closing bandwidth deficits falter, two new studies show
Turnover rates hover near 50%, Cerulli and Ensemble report, and may be worsening as hires in market of talent scarcity has inevitable backlash.
February 28, 2024 at 3:36 AM
The classic RIA era is sputtering and firms must 'decentralize,' hiring non-advisors to specialize, new Cerulli report shows, or RIAs will 'limp along,' a second consultant says
RIA principals have killed Wall Street with semi-solo shops -- only 35% have 'specialized staff' -- but the comfort zone must evolve for growth
January 13, 2024 at 2:24 AM
BNY Mellon's new CEO is an RIA fan, and Pershing Advisor Solutions made a big personnel move to reflect it
Charles Scharf loosened the Pershing purse strings for Mark Tibergien who created 'head of platforms' position for Christina Townsend
March 12, 2019 at 10:14 PM
Moss Adams
Consulting Firm
Top Executive: Rebecca Pomering
The Ensemble Practice LLC
Consulting Firm
Top Executive: Philip Palaveev
