Paul Reilly, CEO of Raymond James, has expressed apprehension about the surging prices associated with Registered Investment Advisor (RIA) roll-ups, emphasizing a shift in the competitive landscape.

During a recent earnings call, Reilly highlighted the impact of RIA aggregators backed by private equity managers, emphasizing the challenges posed by the high private multiples compared to public multiples. He noted that the trend has altered the dynamics, leading financial advisors to sell their firms rather than maintain ownership. According to InvestmentNews, the surge in those roll-ups is significantly impacting the competitive landscape, leading Reilly to question the sustainability of these elevated prices.

While specific pricing details were not disclosed, there is industry-wide concern about the steep rise in RIA acquisition costs in recent years. Despite the challenges, Raymond James reported steady figures, with 8,710 financial advisors and new highs in client assets under administration, reaching $1.37 trillion, marking a 17 percent increase compared to December 2022.

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