RIA Market Update: Q3 2024

Client concentration, an aging client base, weak organic growth, founder dependence, and questionable earnings adjustments can complicate an RIA sale. Identifying and addressing these issues before due diligence helps owners protect transaction value and negotiate from a stronger position.

Alternative asset managers experienced a significant contraction in public-market valuation multiples through September 2026 despite continued growth in assets under management and revenue. The divergence between operating growth and market performance highlights the importance of profitability, recurring revenue, and firm-specific fundamentals when assessing asset management businesses.

RIA M&A activity remained strong through August 2026 despite moderating transaction volume, with large acquisitions driving asset totals and private equity-backed consolidators remaining active. An examination of deal trends, minority investments, and transaction structures highlights important considerations for RIA buyers, sellers, and owners evaluating succession options.