A weekly update on issues important to the Investment Management industry
Each year, we close our blog with a holiday poem inspired by Clement Clarke Moore’s A Visit from St. Nicholas. This season, with markets at record highs but public trust in institutions on shakier ground, it seemed fitting to summon the ghost of J. P. Morgan himself. In “The Ghost of Trust,” Morgan visits on a December night in New York to remind us that even in an age of algorithms, skyscrapers, and artificial intelligence, the most important capital a firm can hold is integrity.
A growing number of RIAs are positioning themselves up-market, targeting larger households, multi-generational families, and clients whose needs extend well beyond investment management. Ultra-high-net-worth clients often rely on trusts not just for estate planning but as central vehicles for governance, control, tax efficiency, and multi-generational wealth transfer. These structures must be administered accurately and consistently for years — often decades — after they are created.
For these clients, a capable corporate trustee is not merely helpful; it is essential. Attorneys and planning professionals can design sophisticated trust arrangements, but the trustee is the party responsible for carrying them out. As RIAs seek to serve larger, more complex families, the absence of a trustee solution becomes a strategic limitation. Many firms find that they can provide strong planning advice, only to see implementation, and the associated assets, move to a trust company or financial institution that may also offer wealth management.
This is one reason trust capabilities are increasingly central to the up-market strategy conversation.
Momentum for RIAs isn’t about riding strong markets, it’s about building systems that hold up when conditions tighten. As firms look toward 2025-26, the advantage will go to those that understand the true drivers of their growth, reinforce margins, and modernize ownership to support long-term strategy.
Industry tailwinds remain, but they’ll increasingly favor firms prepared for volatility, demographic shifts, and referral disruption. Momentum isn’t speed, it’s staying power.
As firms sort through the “leftovers” of 2025, several themes are poised to carry meaningful weight into 2026. Margin discipline, improved client engagement, and rising operational maturity have strengthened the industry’s foundation. Strategic dealmaking, evolving succession plans, and measured progress with AI adoption continue to shape valuations and competitive dynamics. These lingering trends aren’t remnants—they’re the building blocks of a resilient, opportunity-rich year ahead for RIAs.
Earnouts can bridge valuation gaps in RIA M&A by tying part of the purchase price to post-close performance. This article explains the differences between retention and growth earnouts, key metric choices, and structural considerations that help create clear, predictable, and effective earnout frameworks for both buyers and sellers.
Investment management firms generate more earnings than they need. The real challenge isn’t making money—it’s deciding, intentionally and strategically, how best to use it.
This week we’re flipping the script on last week’s post, “What to Look for in a Buyer for Your RIA,” to analyze transactions from the buy-side perspective. This post focuses on the key attributes that RIA acquirers should look for in a target that should make the transaction successful, value-accretive, and enduring.
Key Takeaways The right buyer offers more than the highest price.Successful RIA transactions balance financial terms with strategic alignment and cultural fit. Understanding a buyer’s motivations—and how they plan to integrate your firm—is essential to preserving client relationships, employee engagement, … Continued
Schwab’s announcement that they’re halving client referrals to RIAs through the SAN program threatens an industry that was already struggling with organic growth. Dependable, sustainable growth requires building a marketing strategy that isn’t dependent on outside factors like ambitious custodians, and a tracking system to know how that marketing strategy is performing. Keeping an eye on your metrics will help keep you on the road to lasting value.
RIA M&A activity rebounded sharply in 2025, with record deal volume in the first half of the year. Through September, 209 transactions were completed—up from 156 in 2024—driven by private equity involvement, lower borrowing costs, and ongoing consolidation trends. While total transacted AUM declined, serial acquirers and aggregators continued to dominate deal flow. For RIAs, shifting rate dynamics, valuation trends, and evolving buyer profiles highlight the importance of strategic planning—whether pursuing growth, transitioning ownership, or exploring a sale.
