A new report from Cerulli Associates projects that the advisor-managed high-net-worth industry will surpass $30 trillion in assets under management by 2028, with an expected annual growth rate of about 9.3% for the foreseeable future.
Wealth creation and concentration among HNW households (defined as households with $5 million or more in assets) have surged in recent years, Cerulli’s data shows. This has led to an industry-wide focus on capturing HNW assets by moving upmarket.
The findings are drawn from the latest edition of the quarterly Cerulli Edge advisor report. Cerulli estimates that more than 50,000 HNW-focused advisors work in the United States, spanning more than 20,000 firms across the wealth management industry. These advisors, on average, manage about $368 million in HNW assets each.
As these firms look to grow and others aim to move upmarket, the report suggests, wealth managers are adopting new strategies to address the needs of HNW clients. The same is true for firms aiming to win ultra-high-net-worth investors with more than $20 million or more in investable assets.
Such services include private banking, foundation management, family counseling, lifestyle services, trust administration, cash management, bill payment and consolidated reporting. On average, the number of discrete services offered by HNW-specialist practices has risen from 10 in 2017 to 12 in 2024.
“Across the wealth management industry, the climate is ripe for practices looking to move upmarket, and firms are making this move by investing in and expanding their service offerings,” Andrew Larsen, wealth management analyst, said in a statement.
“HNW investor-focused practices … have been adding more comprehensive services at a rapid pace over the past several years to accommodate their clients’ nuanced needs,” Larsen said.
Cerulli expects that the greatest success will come for firms able to develop significant in-house expertise while leveraging online resources and third-party technology providers to give clients direct access to more information and services — including but not limited to asset management.
Client Service Evolution
In 2017, according to Cerulli, fewer than half of HNW-focused practices offered trust administration and trustee services (42%) and private banking services (34%). In 2024, their use increased to 61% and 59%, respectively.
Likewise, in 2017, just 56% of HNW practices offered estate planning services in-house. By 2024, that share had grown to 73%. Tax planning, preparation and compliance services also have grown in adoption, from 29% of HNW practices in 2017 to 38% in 2024.
“Wealthy investors have more complex service demands than the average client, and these needs are a deciding factor in their choice of advisor,” Larsen observed. “Advisors must deliver a ‘white glove experience’ and superior levels of service across every aspect of the client service spectrum.”
Practices that can meet these service needs with a strategy for reliably scaling them will have more success attracting HNW clients, Cerulli reports. They’ll also be better at gaining and keeping their trust.
Relationship vs. Service
Although the HNW advice industry continues to be a relationship-driven business, Cerulli reports, the latest data suggests that the status quo is evolving.
For example, as of 2023, 35% of HNW investors cite “services offered” and “previous client service experience” as top reasons for beginning an advisory relationship. This supersedes other relationship-based reasons for hiring a new advisor, including prior relationships and fees.
Cerulli further expects service offerings and client experience to remain key differentiators of wealth management providers in the HNW and UHNW arenas as wealth begins to move across generations.
However, the report warns, making the shift upmarket requires dedicating time and resources to provide the more sophisticated services necessary to meet these clients’ expectations.
As an example, private banking and trust services are being integrated more fully across the wealth industry, expanding from being used by a minority of HNW practices — primarily those in private banks and smaller trust companies — to being used by the majority, including those in the RIA space.
Cerulli anticipates continued growth in the adoption of these services, as firms across all wealth management firm types aim to service wealthier and more intergenerational families. These clients have a greater demand for private banking for both themselves and their businesses, and they also need more assistance preserving their legacies through trust creation and administration.
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