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RIA Valuation Insights

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October 2, 2025 Industry Trends

RIA Market Update: Q3 2025

RIAs delivered mixed results in Q3 2025, with larger asset managers leading the sector at an 11% quarterly gain, outpacing the S&P 500’s 8% return. Smaller managers rose modestly, while alternative managers continued to lag after a stretch of strong growth in 2023 and early 2024. On a year-over-year basis, traditional managers remained ahead of the index, while alternative managers posted the strongest revenue and EBITDA growth despite muted price performance. We explore further in our Q3 2025 Market Update.

September 22, 2025 Current Events Industry Trends

The UHNW Institute’s “Wealthesaurus”

Clear communication is essential in family business governance, yet shared definitions are often overlooked. That’s why the UHNW Institute’s new Wealthesaurus caught our attention. This online glossary brings clarity to the complex vocabulary of family wealth and enterprise conversations. This resource also provides standardized definitions of common and specialized family wealth advising industry terms. For directors, it’s a valuable reference that supports informed decision-making and effective dialogue across generations.

September 19, 2025 Alternative Asset Managers Transactions Valuation

Private Equity’s Growing Influence on RIA Dealmaking and Valuation Multiples

Private equity continues to reshape the RIA landscape in 2025, fueling record deal activity and driving consolidation at an unprecedented pace. With 132 transactions in the first half of the year totaling $182.7 billion in AUM, PE-backed firms now account for more than half of all acquirers. Their disciplined “buy-and-build” strategies, focus on scalability, and willingness to pay strategic premiums are redefining ownership dynamics and valuations across the sector. For RIA owners, aligning with PE’s playbook offers both opportunities and challenges in unlocking long-term enterprise value.

September 12, 2025 Trust Companies Wealth Management

Is There a Scarcity Value for Independent Trust Companies?

Supply/Demand Dynamics in Trust Company M&A

Independent trust companies are in short supply compared to the thousands of RIAs, yet demand for their capabilities is rising. For wealth managers, acquiring trust services enhances client retention, attracts larger and more complex relationships, and secures multigenerational ties. This supply–demand imbalance suggests trust companies may carry a real “scarcity value” in today’s market.

September 5, 2025 Industry Trends Practice Management Valuation

Ten Takes from Ten Years of RIA Valuation Insights

After 500 Blog Posts, We Still Have More to Say

In the late spring of 2015, Brooks Hamner and I were having lunch and started talking about creating a blog to explore what we were seeing regarding valuation and advisory projects in the RIA space. The big question was not whether we could start it, but whether we could keep it going.

Most blogs start strong for a few months and then kind of fade out. When we got back from lunch, I pulled up a Word doc and Brooks and I started brainstorming topics. In a few minutes, we had several dozen ideas, so it was pretty clear we had enough to say.

Ten years later, we still haven’t run out of ideas.

Looking back, though, we do see a few themes on heavy rotation. I doubt that will change.

August 29, 2025 Trust Companies

The Growing Appeal of Independent Trust Companies

Independent trust companies are gaining momentum in 2025, offering high-net-worth clients flexible, client-focused solutions outside the constraints of traditional banks. As the $68 trillion Great Wealth Transfer accelerates, these firms stand out for their personalized services, regulatory agility, and tech-driven client experience—positioning them as key players in the evolving wealth management landscape.

August 22, 2025 Margins and Compensation Valuation

Building Valuable RIAs

Navigating Margins, Compensation, and Long-Term Growth

In the investment management world, evaluating a firm’s margin isn’t as simple as “more is better.” For RIAs, margin reflects efficiency, but it also reflects the firm’s tradeoffs with compensation. Investment management is a talent business, and striking the right balance between margin and employee compensation that allows the firm to attract, retain, and incentivize talent is critical to an RIA’s success. Read more in this week’s post.

August 15, 2025 Valuation Wealth Management

Enhancing RIA Value Through Family Office Services

Being Ambitious Without Becoming Delusional

In the ever-evolving wealth management sector, we see RIAs exploring ways to bolster their competitive edge, long-term sustainability, margin, and valuation. An increasingly common strategy involves integrating family office services, which extend core asset management to include comprehensive tax optimization, estate planning, philanthropy coordination, and lifestyle management. This often manifests as a multi-family office (MFO) model, serving multiple ultra-high-net-worth (UHNW) clients under RIA regulatory frameworks. In this week’s post, we discuss the strategy and if it can provide resilience for RIA margins.

August 8, 2025 Current Events Industry Trends

You Can’t Spell RIA Without AI

The Impact of Artificial Intelligence on the RIA Industry

AI is expected to have a significant impact on the RIA industry. This relatively new technology is already reshaping how RIAs manage assets, engage with clients, and navigate an increasingly competitive landscape. For RIA owners, understanding and leveraging AI is becoming critical to maintaining a competitive edge, enhancing firm valuations, and ensuring long-term success in a mature but evolving industry. This post explores the multifaceted impact of AI on the RIA industry while providing actionable insights for firms looking to adapt.

August 1, 2025 Transactions

RIA M&A Isn’t the Only Way

Internal Transactions Still Work

With a constant stream of headlines about M&A and near-daily inquiries from prospective acquirers, it’s easy for RIA owners to get the impression that external transactions are the norm. Internal transactions don’t generate headlines, and prospective buyers (next-gen management) likely aren’t beating your door down to close a deal. While they may be less conspicuous, internal transactions are a viable avenue for succession planning and one that many RIAs accomplish successfully. 

July 25, 2025 Practice Management

Buy, Sell, Plan: The Business of Advisor Succession

Matt Crow on Dimensional Fund Advisors "Managing Your Practice" Podcast

Matt Crow recently had the pleasure of joining Aaron Hasler, Managing Partner at Skyview, and Catherine Williams, head of practice management at Dimensional Fund Advisors, for a discussion about the financial strategies involved in succession planning. They covered financing options, common roadblocks, generational dynamics, and much more. Listen to their discussion in our latest post.

July 18, 2025 Current Events Industry Trends

RIA M&A Update: Q2 2025

M&A activity in the RIA space rebounded strongly in early 2025, with record-setting deal volume in Q1 and continued momentum into Q2. A favorable interest rate environment, increased private equity involvement, and a growing number of serial acquirers helped fuel activity. Despite a sharp decline in total transacted AUM, deal count and strategic interest remained high. For firms exploring growth, succession, or liquidity, understanding the evolving M&A landscape—and aligning your strategy with the right partner—has never been more critical.

July 11, 2025 Industry Trends Trust Companies Wealth Management

Independent Trust Company Trends in 2025

One of the most frequently overlooked sectors in the wealth management industry may be its first cousin, the independent trust industry. While many still associate trust administration with banks, which account for more than 75% of the space, the growing prominence of independent trust companies is capturing the attention of many participants in the investment management community. In this post, we examine current trends impacting independent trust companies.

July 3, 2025 Industry Trends

RIA Market Update: Q2 2025

RIAs generally outperformed the S&P in Q2 2025, with smaller asset managers returning over 13%, and alternative asset managers facing another quarter of underperformance after a year of strong growth. Year-over-year, alternative investment managers saw the strongest AUM growth, while traditional managers proved better at converting this growth to earnings. We explore further in our Q2 2025 Market Update.

June 27, 2025 Industry Trends Valuation Wealth Management

Navigating Valuation Challenges in the Great Wealth Transfer

Over the next two decades, an estimated $68 trillion is expected to transfer from Baby Boomers and Gen X to Millennials and Gen Z in what has been dubbed the “Great Wealth Transfer.” For RIAs and trust companies, this transition presents both opportunities and challenges that directly impact firm valuations. As client demographics evolve, investment management firms must adapt to retain AUM and navigate the valuation implications of this seismic wealth shift.

June 20, 2025 Transactions Valuation

Succession Conundrums: Why Sell to Insiders for Less?

(Because It May End Up Making You More)

A frequent question among RIA owners is whether internal buyers, such as employees or partners, pay less for their equity stakes compared to external buyers, and if so, why pursue internal succession? The answer is straightforward: internal buyers typically pay less, sometimes significantly less, due to unique industry dynamics and the structure of internal deals. This post explores the valuation perspectives and practical reasons behind this pricing differential, as well as why internal succession remains a compelling strategy despite lower valuations.

June 13, 2025 Practice Management Uncategorized

Don’t Punt on Succession Planning, Even if You Plan to Sell Externally

A well-structured succession plan not only enhances the firm’s operational stability and scalability but also increases its attractiveness to potential buyers. Buyers are not merely acquiring existing assets; they are investing in the future growth and continuity of the business. By prioritizing succession planning, RIA owners can better position themselves for a successful exit, ensuring they maximize value and minimize disruption, ultimately leading to a smoother transition for clients and team members alike.

June 6, 2025 Practice Management Valuation

Webinar Replay: Succession Planning for RIAs

Transition with Confidence

In our latest webinar, Matthew R. Crow, CFA, ASA and Brooks K. Hamner, CFA, ASA guide you through the critical steps of succession planning, ensuring your firm’s legacy thrives while maximizing its value. Whether you’re considering a sale, seeking investment, or transacting with current employees, this session is designed to equip RIA owners, acquirers, and industry advisors with the knowledge to make informed decisions and capitalize on emerging opportunities.

May 30, 2025 Practice Management Valuation

Succession Planning and Its Impact on RIA Valuations

For the investment management industry, succession planning is not just a strategic necessity—it’s an important driver of firm value. 

As the wealth management industry evolves, with an estimated 40% of RIA founders approaching retirement age, effective succession planning can mean the difference between a thriving firm and a diminished valuation. 

Here’s how RIAs can navigate succession to maximize value in 2025 and beyond.

May 23, 2025 Industry Trends Practice Management

Whitepaper: Succession Planning for Investment Management Firms

For this week’s edition of RIA Valuation Insights, we revisit our whitepaper, “Succession Planning for Investment Management Firms.” The updated whitepaper complements next week’s webinar, “Succession Planning for RIAs: Transition with Confidence,” with RIA team leader and CEO of Mercer Capital, Matt Crow and RIA senior team member and Senior Vice President, Brooks Hamner. You can register for the webinar in the post.

May 16, 2025 Practice Management

Managing Your RIA’s Priorities

The Owner Strategy Triangle

Sometimes we come across an idea that is so good we’re jealous of the person or persons who developed it. The Owner Strategy Triangle is one such idea. Josh Baron and Rob Lachenauer are family business consultants who founded Banyan Global and saw a strategic need for family business owners to decide what they valued most between three options: liquidity, growth, and control. While the authors developed the Owner Strategy Triangle as a way to examine strategy for family businesses, we see useful applications for their framework for RIA leadership as well.

May 9, 2025 Practice Management

Succession Is a Process, Not an Event

Why RIA Owners Need to Plan Early and Continuously

Succession planning is often misunderstood as a one-time event—a moment when an RIA owner transitions leadership and exits the firm. In reality, succession is best viewed as a process, not a single event. It is a strategic, ongoing effort that requires continuous planning and preparation over many years. For RIA owners, the stakes are high: a well-executed succession plan not only ensures the firm’s longevity but also enhances its value, whether you ultimately transition internally or sell to an external party.

In this week’s post, we address the process of succession and the role of internal resources such as next-generation leadership, as well as how investing in these areas increases your firm’s value—regardless of whether you choose an internal or external transition.

May 2, 2025 Current Events Valuation

The Impact of Market Volatility on RIA Valuations

An Illustrative Example of the Dangers of Formula Pricing in a Buy-Sell Agreement

In this week’s post, we take a closer look at how market volatility impacts the valuation of RIAs. Specifically, we show an illustrative example of how it could affect the formula pricing valuation of a $1 billion AUM RIA that has 70% of its clients’ assets in the S&P 500 and 30% in a diversified bond fund. However, for RIAs looking to weather a bear market, we recommend focusing on what you can control, as it should pay off in the long run.

April 25, 2025 Current Events Wealth Management

Market Volatility and the Enduring Value of Wealth Management

Following a comparatively placid first quarter, this month hasn’t been kind to anyone working in investment management. Readers of this blog may be wondering what impact current market conditions have on the value of their firms. Specifically, given the current macro environment, is the value of your RIA impaired? The answer probably depends on who you ask and, more importantly, why you’re asking.