Shifting Strategies in the Wealth Management Industry
For years, the wealth management industry has been guided by a singular focus: moving “upstream.” The prevailing belief is that to enhance profitability and avoid becoming commoditized, firms need to concentrate on serving high and ultrahigh net worth clients.
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Industry experts often argue that larger firms, particularly those with the resources to provide comprehensive services to their wealthiest clients, are best positioned to execute this strategy. At first glance, this perspective seems logical.
Among the largest Registered Investment Advisors (RIAs) with assets under management (AUM) exceeding $10 billion, the average client size is approximately $13 million, significantly higher than the industry average.
However, a recent analysis by Financial Planning reveals that despite their size, the industry giants are lagging behind smaller peers in terms of increasing their average client wealth.
Over the past five years, midsize and large firms have witnessed a growth in average client wealth in tandem with market trends. In contrast, giant firms have primarily expanded their assets by adding more clients rather than focusing on increasing wealth per client. Consequently, while the exclusive client segment remains dominant in scale, there has been sluggish progress in elevating average client size.
Several explanations have been offered for this divergence. Elliot Dornbusch, founder and CEO of CV Advisors, attributes the slower growth in assets per client to the “law of large numbers.” He explains that managing accounts of $100 million and above makes it challenging to significantly increase account sizes. In contrast, when managing $1 billion, a single oversized family can lead to a more substantial percentage increase per client.
CV Advisors has managed to increase its average per-client AUM by nearly 9% since 2021, slightly below the median for its peer group. However, the firm’s average client size of $96 million reflects the high initial starting point described by Dornbusch.
Savant, EP Wealth Defying Trends
Amid the cohort of giant firms, a few outliers are bucking the trend. Savant Wealth Management and EP Wealth Advisors have successfully raised their per-client AUM by 42% and 37%, respectively.
Kevin Hrdlicka, head of wealth at Savant, attributes the firm’s growth to service expansion and strategic partnerships. He emphasizes the importance of personalization in serving clients across various wealth segments and niche areas such as tax and estate planning.
EP Wealth has leveraged strategic acquisitions to enhance average client wealth. Erin Voisin, managing director of wealth management services at EP Wealth, highlights the firm’s selective approach to acquisitions, focusing on clients with assets aligning with their target market.
While some firms, like Aspiriant, have experienced client growth over the past five years, resulting in an increase in overall client count, average assets per client have declined. This pattern underscores the importance of specialization and differentiation in sustaining long-term growth.
Experts caution that firms overly reliant on scale without specialization may risk providing a commoditized experience, hampering growth and client trust in the long run.
Methodology and Data Sources
The data used in this analysis was sourced from the SEC’s Investment Adviser Information Reports for the periods of December 2021 and December 2025. The dataset is limited to firms listed on the 2025 RIA Leaders list compiled by COMPLY. Total client counts were derived from Form ADV submissions, with adjustments made for reporting consistency.
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