Registered investment advisory (RIAs) firms looking to grow in an increasingly competitive marketplace may need to rethink traditional business development strategies, according to industry leaders who spoke at the Wealth Management EDGE conference in Boca Raton, Florida.
According to Wealth Management, executives from several large RIAs shared how dedicated prospecting teams, centralized business development functions, and targeted niche marketing efforts have helped drive organic growth at their firms during a period when many advisory practices have struggled to expand their client bases.
Gary Roth, co-CEO of Modern Wealth, told conference attendees that many RIAs have experienced little to no organic growth over the past decade. He emphasized the importance of removing the responsibility of client acquisition from financial advisors and creating centralized systems that connect qualified prospects with advisors.
Wealth Management reports that Modern Wealth has invested in what it calls organic growth hubs, where dedicated personnel engage with prospective clients, gather information, and schedule meetings with appropriate advisors. Roth credited that approach with helping the firm grow to more than $13 billion in assets under management since its launch in 2023. He also noted that the firm's growth infrastructure has become an attractive feature for advisors considering a move to the platform.
Kay Lynn Mayhue, president of Merit Financial Advisors, described a similar strategy focused on institutionalizing organic growth. Rather than relying on advisors to generate their own leads, Merit has built a business development team responsible for prospect outreach, qualification, and appointment scheduling.
According to Mayhue, that structure allows advisors to spend more time serving clients and less time pursuing new business opportunities. Wealth Management reports that Merit currently oversees approximately $25 billion in client assets and continues to pursue both organic growth and acquisitions.
James Bogart, CEO of Bogart Wealth, discussed a different approach centered on niche marketing. He explained that his firm has achieved its growth through targeted outreach and by developing specialized expertise within specific client segments.
Bogart Wealth, which emerged from a Morgan Stanley breakaway in 2016, has grown from approximately $526 million in assets to roughly $4 billion today. According to Wealth Management, Bogart attributed much of that success to focusing on particular market segments rather than attempting to serve every type of investor. The firm has expanded its business development capabilities to further support client acquisition efforts.
While panelists highlighted the benefits of organic growth initiatives, they also acknowledged that many advisory firms have reached a stage where growth is no longer a primary objective. Some firm owners instead are exploring succession planning or potential sale opportunities.
Industry consolidation continues to accelerate. According to new research by Cerulli Associates, approximately 26,000 financial advisors are expected to retire over the next decade, a trend that could fuel merger activity throughout the wealth management industry. Wealth Management reports that Cerulli found that more than half of RIAs are evaluating potential exit strategies.
Mayhue noted that Merit Financial Advisors has experienced an increase in acquisition opportunities following LPL Financial's acquisition of Commonwealth Financial Network. She indicated that the volume of merger activity has exceeded the firm's original projections and prompted investments in integration resources, including several internal promotions focused on onboarding new advisory teams.
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