RIA Headcount, AUM Shattered Records in 2024

Look how you’ve grown.

The RIA industry has expanded tremendously over the past 25 years, with headcounts, client numbers, and assets hitting record highs in 2024, according to the latest snapshot report from trade group Investment Adviser Association. Last year, nearly 16,000 firms managed $145 trillion in assets. Since the report was first published in 2000, the number of firms has more than doubled, and total assets under management in the US have grown seven times as much, per the report. The number of non-clerical workers — half of whom provide investment advice — have increased to a record of more than 1 million, up from 766,000 in 2009.

Classy Clientele

Overall client numbers reached a new peak last year at nearly 69 million. High-net-worth clients are always a top priority for advisors, and it’s easy to understand why: The bigger a client’s portfolio, the more an advisor stands to make. Since 2017, average assets in the accounts of high-net-worth individuals have jumped by roughly 25% from $1.4 million to $1.8 million, per the IAA.

Not all clients are so fortunate, though:

• The assets of the average mass-affluent client — those with less than $1.1 million in assets, per IAA — fell 0.7% in the same time. 
• Despite that, non-high-net-worth clients made up the bulk of asset management clients last year at roughly 85%. RIAs helped 48 million non-high-net-worth clients.
• The segment has grown by 9.5% per year for the last seven years, as digital platforms have made it easier for investors to access advice. 

There’s Always a But. Despite all the record-high figures, there are a few things to keep in mind. The wealth management industry is expected to be short more than 100,000 advisors by 2034 as retirements outpace recruitment efforts, according to McKinsey & Co. The global economy is currently contending with tense trade negotiations among the world’s superpowers, which could impact growth. And Americans continue to deal with inflation and high interest rates, hampering many peoples’ ability to save. 

“The next Adviser Snapshot may be reporting on a significantly changed industry,” according to the IAA report. “Unsettled markets and economic uncertainty could mean lower growth in 2025.”