Financial advisors who operate in team-based practices enjoy clear structural advantages over solo practitioners, according to new research from Cerulli Associates. According to Financial Advisor News, the Boston-based consultancy detailed its findings in the U.S. Advisor Metrics 2025 report, which shows that advisory teams manage more assets, grow faster, and offer broader services than individual advisors working alone.
Cerulli found that the average team-based practice oversees approximately $330 million in assets under management, compared with $95 million for solo advisors. Growth trends mirror that gap. Team practices generate an average of $20.3 million in annual organic growth, more than double the $8 million produced by solo firms.
Client relationships also tend to run larger and deeper at team practices. The report showed average client size exceeding $2.3 million for team-based firms, while solo advisors averaged just under $1 million per client. Cerulli attributed part of this disparity to the prevalence of team structures in wirehouse and hybrid RIA channels, which continue to command a large share of industry assets.
Beyond size and growth, Cerulli highlighted operational advantages. Team practices more frequently employ professional and administrative staff, allowing senior advisors to focus on higher-value activities. 37 percent of team practices employ specialized staff, compared with only 8 percent of solo firms. Similarly, 28 percent of team practices maintain dedicated financial planning or investment personnel, while just 5 percent of solo advisors do the same.
Service breadth also favors teams. Team practices offer an average of 7.3 services, compared with 6.5 at solo firms. Teams more often employ junior advisors as well, with 46 percent reporting next-generation advisors on staff versus 15 percent of solo practices. Financial Advisor News adds that this investment aligns with stronger continuity planning. Nearly 79 percent of team practices reported having a formal succession plan, compared with 66 percent of solo firms, an important distinction as a significant portion of the advisor workforce approaches retirement.
The report underscores how common teaming has become, while also noting that nearly half of advisors still operate independently. Cerulli found that 51 percent of advisors currently work in team structures, with adoption highest in wirehouse and hybrid RIA channels, where 64 percent of advisors operate in multi-advisor teams.
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