Scale to Win: Examining the RIA Growth Model

You started your firm to advise clients. Somewhere along the way, the job quietly expanded into roles you never signed up for. The portfolio management and trading oversight sit with you now, and the technology administration lands on your nights and weekends because no one else has time to absorb it. The more clients you serve, the heavier that weight gets, and the less time you have for the work that actually grows your business.

This white paper speaks to principals and leadership teams at small to mid-sized RIAs managing between $100 million and $1 billion in AUM. You are asking a question that has become urgent. How do you build a firm that scales without adding operational complexity every time you add a client? The M&A wave reshaping the independent channel is moving at a record pace. What can your firm emulate from those that are successfully growing their practices? This paper outlines the benefits of putting technology to work on those behind-the-curtain tasks that can be easily automated.

The case for outsourcing and automation is no longer theoretical. The underlying data is clear and the technology has matured. The economics favor action at AUM levels far below what most advisors assume. Firms that restructure their investment operations protect their margins and reclaim advisor time. Fidelity’s research shows advisors who outsource investment management create eight to nine hours per week of extra time. That equates to effectively freeing up about an entire workweek every month and over 400 hours per year according to the Fidelity Financial Advisor Community Investment Approach & Product Survey (May 2023) and reinforced by the 2023 Fidelity RIA Benchmarking Study. They also build infrastructure that commands a premium, whether your strategic goal is sustained independence or a future liquidity event.

This paper does not argue that all firms should outsource every aspect of their businesses. Instead, it provides a framework for making the decision honestly, including what delay actually costs.

Download the white paper for free by filling out the form below! Thanks to AdvisorEngine and AdvisorEngine Portfolio Solutions (AEPS) for sponsoring this white paper. AEPS reimagines the TAMP model, delivering turnkey efficiency with the flexibility to tailor portfolios to a firm’s unique philosophy and client needs.