Consolidation among registered investment advisors continues to accelerate, with new research from Cerulli Associates indicating that the sector is on track to exceed $4 trillion in assets under management over the next ten years. The Boston-based consultancy reports that 54% of RIA firms are currently pursuing acquisitions, a share that has risen steadily as firms seek to capitalize on demographic tailwinds and market dynamics.
Firms with at least $5 billion in AUM have dramatically increased their market share, growing from 34% in 2018 to 54% in 2024, according to Cerulli. This concentration of assets among the largest players underscores the competitive pressure on mid-sized and smaller RIAs to scale or face being acquired.
Retirement Wave Dominates Deal Pipeline
The most significant source of acquisition opportunities remains the impending retirement of thousands of advisors. Cerulli projects more than 26,000 advisor exits over the next decade, representing a combined $2.508 trillion in AUM. This retirement pipeline far exceeds other categories, including breakaway advisors ($783 billion) and growth-challenged RIAs ($605 billion).
"Advisor retirements remain the largest addressable market for RIA acquisitions in terms of assets under management," said Stephen Caruso, associate director at Cerulli. "On average, these retiring advisors have larger books of business than employee advisors looking to break away." The retirement wave feeds into a broader succession gap, with nearly 40% of advisors expected to leave the profession in the next decade and many lacking formal succession plans.
In total, Cerulli estimates $3.9 trillion in RIA acquisition AUM exists across more than 66,000 advisors, with the majority currently residing within potential broker-dealer breakaway practices. Recent high-profile moves, such as the $129 billion Merrill Lynch team that became OpenArc with support from Dynasty Financial, illustrate the scale of breakaway activity.
Hybrid RIAs Lead Acquisition Push
Not all buyers are equally active. Cerulli identifies hybrid RIAs—firms operating on both fee and commission bases—as the most acquisitive segment within the independent channel. However, breakaway acquisitions have grown more complex due to exit strategies from captive broker-dealers, creating friction for buyers targeting wirehouse or national B/D teams.
Firms that have been acquired or are considering acquisition face operational challenges around technology integration, workplace culture, and long-term scalability, Cerulli notes. Meanwhile, organic growth remains elusive for the largest firms. From 2019 to 2024, RIAs with more than $1 billion in AUM achieved a compound annual growth rate of 11.4%, but that drops to just 3.9% when market gains are excluded.
"Even within the highest AUM tiers, organic growth potential still can be limited in terms of net new assets coming into these already sizable billion-dollar-plus RIAs," Cerulli said. "Against this backdrop, M&A will continue to be a key storyline when it comes to industry growth and its evolution for the foreseeable future."
Recent deals, such as Carson Group adding a $1.1 billion team from Osaic and Lido Advisors acquiring a $1 billion Tulsa RIA, highlight the ongoing consolidation across the wealth management industry.
