Fewer than 3% of RIAs nationwide have $1 billion or more under management, according to a new report from SmartAsset.
At the end of the last fiscal year, only 412 firms had reached or passed $1 billion under management, and significantly fewer could boast passing the $10 billion or $50 billion benchmarks.
These billion-dollar firms have proved their value and expertise to their clients, the report said. They have achieved success in different ways: some by building scalable systems, others by leaning into a niche and still others by identifying high-ROI marketing approaches.
SmartAsset determined the number of billion-dollar firms in each state by examining August Form ADV filings with the Securities and Exchange Commission for RIAs. Researchers considered only firms with no disclosures and with their main office based in a U.S. state.
The study found that some 20% of billion-dollar RIAs are based in New York state. Of a total of 79 firms, five manage $10 billion or more. In context, just 3.4% of the state’s 2,339 active firms have reached this level. This compares with more than 10% for the top two states, which have far fewer active firms.
Nine RIAs across the country manage more than $50 billion. Some are in the most populist states, though several are in states with the least population.
Twelve states — some with significant concentrations of firms with ultra-high assets under management — are still waiting for their first billion-dollar RIA to emerge.
See the accompanying gallery for the 12 states with the highest rates of billion-dollar RIAs. They are ranked based on the percentage of firms that manage $1 billion or more as of August Form ADV filings.
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