Market Share Shift from Wirehouses to RIAs

Definition

Independent Registered Investment Advisors (RIAs) are capturing significant market share from traditional wirehouses, creating competitive pressure for both wirehoused advisors and independent advisors. Hanover Search reports that 'RIAs are on-track to controlling nearly one-third of advised assets by 2027, according to Cerulli,' compared to wirehouses' share 'expected to fall from 34.1% to 27.7%.' This structural shift reflects: (1) RIA model offers greater independence and potentially higher compensation to advisors, (2) RIA platforms emerging as scaled alternatives combining independence with operational support, (3) wirehouse advisors increasingly migrating to RIA platforms. For wirehoused advisors, this creates retention risk and compensation pressure as firms respond to advisor defection. For independent advisors not on scaled RIA platforms, the shift toward platform RIAs (which aggregate multiple advisors) creates competitive pressure as these entities offer services (technology, compliance, marketing) individual advisors struggle to provide. The advisory talent is flowing toward RIAs, leaving wirehouses and solo practitioners at disadvantage.

Why This Matters

RIA platform network formation, affiliation consulting for independent advisors, competitive positioning consulting, advisor retention strategies, compensation optimization, technology partnerships to compete with platforms

Affected Stakeholders

Wirehoused advisors, Large institutional wealth managers, Advisors considering independence

Related Business Risks