The RIA industry experienced significant growth in 2024, according to the 2025 RIA Benchmarking Study released this week by Charles Schwab Advisory Services.
Across firms of all sizes in the study, assets under management increased by 16.6%, revenue was up by 17.6% and client growth was up by 4.8% in 2024. Fifty-nine percent of all firms met or surpassed their new client growth goals, including 78% of the top-performing ones.
Median client retention has remained consistent over the past decade, at 97%, according to the study. Organic growth, which excludes market performance, contributed to last year’s gains as firms continued to attract investors and receive more assets from existing clients.
For top-performing RIAs, organic growth contributed 12.5% to overall asset growth in 2024. And they gained nearly four times more assets from existing clients than all other firms.
“Growth remains a top priority for firms, and what stands out is how much of that momentum is fueled by organic growth — a true testament to the long-term, trusted client relationships advisors have built,” Lisa Salvi, a managing director at Charles Schwab Advisory Services, wrote in the study’s introduction.
“That’s what makes the independent model so powerful. It keeps drawing in more clients who are looking for advice that’s personalized and grounded in fiduciary principles, as well as top talent who are committed to client success.”
The 2025 benchmarking study is based on self-reported data gathered during the first quarter from 1,288 firms that custody their assets with Schwab, representing some $2.4 trillion in assets under management. Schwab did not independently verify or validate the self-reported information.
Capacity Constraints
RIAs are signaling capacity constraints, the study found, as their use of technology and operational improvements becomes increasingly important. Growing use of artificial intelligence provides them opportunities to unlock efficiencies, innovation and growth.
Sixty-eight percent of firms reported that they use AI in various ways, including administrative support, generating marketing content, developing client correspondence and conducting research.
Strategies to create efficiencies have led to productivity gains, according to the study. Last year, the top-performing firms spent about a quarter less time annually per client on operations,12 hours, and slightly more time per client on client service, 30 hours.
Firms reported that attracting and retaining talent remains a chief priority to position them for success and ensure their long-term sustainability. Seventy-eight percent of RIAs said they had hired in 2024, and 74% of firms reported plans to do so this year.
Inorganic Growth
The benchmarking study showed that inorganic growth strategies have generated high levels of interest among RIAs. Over the past five years, 42% of firms have engaged in inorganic activity: 19% in M&A and 23% in bringing on one or more advisors with a book of business.
Looking ahead, 33% of RIAs with $1 billion or more under management reported that they are actively seeking to buy another RIA. Fifty-four percent are trying to hire an advisor with a book of business, and 27% are looking to bring on a principal with transferrable assets.
Nine in 10 firms with at least $250 million in assets under management reported that they were pursuing inorganic strategies to increase growth in assets, revenue and clients. Sixty-seven percent are doing so to acquire talent, 59% to create scale and 50% to improve client experience.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.