The RIA Squeeze: Navigating Complexity, Competition, and Client Expectations

The RIA industry is changing faster today than at any point in my 30+-year career.

These shifts we’re seeing aren’t incremental: they’re systemic. Between industry consolidation, evolving client expectations, and new competitive dynamics, there is rising pressure on independent RIAs to provide a much broader array of services and much deeper, more complex advice delivered with the kind of sophistication and speed they’re used to.

Gone are the days when wealth management was primarily about portfolio construction and retirement planning. Today’s clients want more. They’re looking for integrated tax strategies, estate planning, intergenerational wealth transfer, and even insurance and credit solutions.

At the same time, RIAs are facing a changing industry. What was once a highly fragmented, "mom-and-pop" business model has evolved into large, professionally managed firms with deep pockets and institutional infrastructure, often backed by private equity.

The bar has been raised — dramatically.

In this environment, many RIAs want to know how to grow and compete without losing their independence or the personal, high-touch service that defines their brand.

This blog will answer these questions for RIAs:

• Why is scaling harder than ever?

• How are client expectations reshaping the value advisors are delivering?

• How can the right platform support RIAs in this next phase of the industry?

Let’s dive in.

The industry is transforming and accelerating

Acquisitions in the wealth management industry are surging. According to the Fidelity Investments Q4 2024 M&A Report: A Decade in Review, private equity firms backed 89% of RIA acquisitions in 2024, up from 43% in 2016. Consolidation is intensifying as larger firms, aggregators, and PE-backed platforms acquire independent practices — giving scale advantages to larger firms and challenging smaller RIAs to differentiate themselves. While total assets under management continue to grow, PE-backed RIAs now control nearly a quarter of the total AUM among larger firms. Furthermore, although PE-owned firms represent only 3.7% of all $100M+ RIAs, they control approximately 23% of the total AUM in that universe. This illustrates an increased concentration of assets in fewer, consolidated players and the reshaping of the competitive landscape.

Clients are more informed with considerable expectations

Investor expectations have evolved beyond traditional portfolio management. Clients are demanding a bespoke, integrated approach that meets their unique needs. EY’s 2023 Global Wealth Research Report found that a growing share of clients expect advisors to provide personalized, holistic guidance that considers not just investments but their broader financial goals and values.

At the same time, Accenture’s 2024 Wealth Management Consumer Report: The New State of Advice emphasizes that clients are increasingly seeking digital tools and collaborative platforms to engage with advisors, track progress, and plan in real-time.

Together, these trends are prompting RIAs to expand their investment solutions, including tax, estate, and retirement planning, and to invest in technology that combines human advice with digital efficiency to meet the rising expectations of their clients.

Differentiation through Private Markets

As investors become more sophisticated, many high-net-worth and mass-affluent clients are looking beyond public markets in search of differentiated returns and diversification. AssetMark Advisor Insights: Private Markets 2025 found that nearly all advisors (91%) say access to private markets investments is critical for differentiation.

Private markets — including private equity, private credit, private real estate, and private infrastructure — were once out of reach for most investors, but this has shifted. For RIAs, incorporating private markets is a strategic move that can strengthen client relationships and help advisors stand out in a crowded market. In fact, data from AssetMark’s Advisor Insights Report shows 68% of RIAs who are not currently providing private markets but are likely to do so in the next 12 months would switch operating platforms to gain access to private markets investments.

Moving into private markets might seem challenging, but with the right infrastructure and platform, advisors can satisfy client needs while saving time and maintaining control.

Scaling and efficiency are becoming more difficult

As the industry consolidates and advances technologically, RIAs face increasing pressure to operate efficiently and attract new clients, all while maintaining a laser-like focus on client service. Cerulli Associates estimates that the average advisor currently manages approximately 140 client relationships. Practices that exceed capacity without a robust operational and technological infrastructure find that their service quality begins to suffer. Efficiency comes from meaningful adaptation of technology, including automated trading, reporting, and model management workflows.

Maintaining independence is challenging

Joining a large aggregator or institution can provide additional support, but often comes at the cost of independence, while building everything in-house can limit scalability and profitability. Many firms are seeking a middle path that enables them to maintain control over their brand and client relationships, while also gaining the necessary infrastructure and support to compete at scale.

Difficulty finding the right growth platform

As the industry evolves, RIAs are increasingly recognizing that sustainable growth in response to these competitive pressures requires strategic relationships. With the right platform, advisors can streamline their operations and expand investment solutions, all while maintaining independence in this changing market. The goal is not outsourcing; it’s prioritizing time and resources so advisors can focus on clients and strategy.

AssetMark provides a complete operating platform designed to help RIAs tackle these challenges. We provide infrastructure, technology, and support services that help advisors to grow efficiently while focusing on building meaningful and unique client relationships.

Our flexible platform handles operational and administrative functions, integrates investment management tools and provides access to curated portfolios and planning resources.

Advisors can select a turn-key solution or implement modular capabilities that enhance their existing processes. AssetMark’s service model also goes beyond technology, providing guidance on advanced planning, trust and estate issues, and complex tax considerations — areas that increasingly add value for clients.

Adjusting to this new normal

The current transformation of the wealth management industry is unprecedented. With changing client expectations, industry consolidation, and the need to scale, RIA firms must adapt to survive. For advisors aiming to grow while remaining independent, a platform like AssetMark provides a practical way forward. Finding the right platform to provide technology, operational support, and expertise is an ideal strategy for RIAs to face today’s challenges and prepare for and prosper in the future.

IMPORTANT INFORMATION

AssetMark, Inc. is an investment management and consulting firm that helps independent financial advisors build great businesses. This is for informational purposes only, is not a solicitation, and should not be considered investment, legal, or tax advice. The information has been drawn from sources believed to be reliable, but its accuracy is not guaranteed and is subject to change.

References to financial advisors and service providers are intended for informational purposes only and should not be considered an endorsement or recommendation of AssetMark. Each party is responsible for their own content and services. AssetMark and its affiliates may engage with providers for services.

Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results.

Investing in private markets involves significant risks, including the risk of complete loss.

AssetMark, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission.

©2025 AssetMark, Inc. All rights reserved.

8592218.1. | 11/2025 | EXP 11/30/2027