What We’re Hearing from RIA Leaders

M&A: A competitive balance between mega-firms and boutiques

A consistent message from RIA leaders is that while consolidation continues to reshape the industry, the simplistic narrative of "big swallowing small" no longer captures the reality on the ground. The competitive balance is shifting toward firms that can successfully maintain their unique culture while leveraging institutional-grade resources. Many RIAs are focused on building scale without stripping away advisor identity or client intimacy. The future may belong to platforms that offer robust support without imposing constraints. 

To thrive in this environment, many boutique firms recognize the importance of building true, sustainable enterprises backed by the right capital partners, rather than simply allowing themselves to be absorbed into larger, corporate entities. This helps to preserve their entrepreneurial energy while securing the resources necessary to compete. Ultimately, consolidation is raising the bar across the industry, but it is not a zero-sum game.

Durable growth comes from a client-centric approach

M&A has dominated the industry's headlines over the last decade, but the pendulum appears to be swinging back toward building the internal infrastructure necessary to drive organic growth. One significant shift in this regard is moving the responsibility of client acquisition from the individual advisor to the firm itself, freeing advisors to focus entirely on servicing existing clients rather than constantly selling. 

What we are hearing from RIA leaders is that while measuring organic growth can be nuanced—especially given how much market tailwinds and strong market performance have buoyed assets under management (AUM) over the past decade—the most durable growth always stems from a relentlessly client-first approach. We fully agree with this perspective. The firms that succeed will be those investing in creative, value-additive resources that go beyond traditional portfolio management. By deepening relationships and offering specialized services, RIAs have the ability to deliver a differentiated client experience which is difficult to replicate elsewhere.

AI: Efficiency vs. the human element

In our conversations with RIA leaders, a clear consensus has emerged: artificial intelligence is no longer a futuristic concept, but an active operational reality. We believe that AI should and will augment, not replace, the advisor. The true value of AI lies in streamlining workflows, reducing administrative drag, and giving advisors back their most valuable asset: time to spend with clients.

While many companies focus on back-office efficiencies, there are massive opportunities on the client-facing side. When deployed deliberately, AI can enhance cybersecurity, streamline lead qualification, and enable more proactive, personalized support. Rather than using AI simply to trim headcount, many RIAs believe the goal should be enablement—equipping advisors with tools that make them feel like they have a team twice their size.

Servicing next-generation clients

Over the next decade, Generation X and Millennial households stand to benefit from trillions of dollars in motion as they inherit assets. To capture this massive transfer of wealth, RIAs are modernizing their service models. Treating next-generation clients as an afterthought or a "bolt-on" strategy is no longer viable; meeting their needs must be a core design principle of the modern firm.

Next-generation clients also fall into distinct categories, requiring a tailored approach. Wealth creators, including founders and entrepreneurs, may need specialized support setting up their personal balance sheets for success. There are also future inheritors, who require robust family governance and education programs to prepare them for managing substantial wealth.

The future of the independent model

The outlook for the independent RIA model remains robust, in our view, provided firms adapt to the evolving capital landscape. Many RIA leaders believe advisor and firm independence continue to be valuable. It enables firms to align with clients’ goals, take a long-term approach to value creation and stay flexible on operational delivery. As RIA firms continue to rapidly consolidate, the ecosystem of service providers is increasingly well-prepared to underpin the new reality of independence at scale.

Goldman Sachs is committed to empowering RIAs through its unified "OneGS" approach. By delivering the full power of the firm's markets, intelligence, balance sheet, technology, and people, we seek to provide the essential infrastructure and resources RIAs need to scale their practices and serve their clients.