RIA assets are expected to account for approximately a quarter of the financial advisor asset market share by the end of next year, according to research from Boston-based global analytics firm Cerulli Associates.
“The advisor channel is still the fastest-growing segment of the financial services industry — that’s why people are flooding toward it,” stated Chip Roame, the managing principal of Tiburon at a recent CEO summit in New York City, as reported by Paula Vasan for OnWallSteet.com.
So what’s driving that growth? According to the Cerulli report, the movement largely stems from the additional flexibility that comes with running your own firm, with potential to own and monetize your practice.
With the RIA rapid growth, more and more asset managers are dedicating more resources to the RIA channel, and many RIAs are seeing greater potential by migrating to institutional clients, managing money for pensions, endowments and foundations, and insurance companies.