RIA AUM Rises 15% While Client Counts Lag

Paithos Research analyzed SEC Form ADV filings covering a 13-month span in 2025–2026 for more than 14,000 registered investment advisory firms. The study found the median firm’s assets under management rose roughly 14.5%–15% while median reported client counts increased about 2%—approximately one additional client per firm.

The dataset showed 30.5% of firms reported higher AUM without a higher reported client count. Paithos author Maxwell Andrew noted that Form ADV filings do not include flow data, so the filings cannot separate AUM growth into market performance, net client inflows or acquisitions.

When the sample was limited to firms serving individual or high-net-worth retail clients, the median number of new retail or HNW clients was zero. Firms that listed at least one retail client in the prior year added a median of six retail clients, and firms with 10 or more retail clients added a median of seven.

Firms that reported offering financial planning services posted a median 17% rise in AUM and a 4% increase in client counts, which the report represented as about 10 new client relationships over the 13-month period.

The Paithos data showed varied client outcomes across the channel. About 25% of RIAs lost retail or institutional clients during the period, roughly 20% reported no change in client counts, and about 20% grew client bases by at least 15%. Eleven percent of firms increased client counts by 30% or more. “Fiscal 2025 was, at the median, a one-client year,” Andrew wrote, and the share of all reported clients held by the top decile rose from 80% to 82.5%.

A small number of very large firms account for most reported assets. The report found 261 firms with more than $100 billion in AUM held about 72% of total reported assets. Including RIAs with at least $1 billion with that group brings the combined share to nearly 98% of reported assets. RIAs with at least $10 billion in AUM added new customers at about twice the rate of smaller peers.

Industry consultants pointed to differences in marketing resources as a factor in client-growth patterns. Tim Fagan, founder and CEO of Capital Turbine, described larger firms as having access to dedicated marketing teams and larger ad budgets, while smaller firms have more limited options such as buying generic marketing templates, paying higher rates to small agencies, or relying on referrals. He added that new AI tools could change the competitive picture and allow smaller advisers with a clear niche to compete more effectively.

Paithos compared reported AUM growth with market returns for the same period: the S&P 500 returned about 17.9%, and a simple 60/40 mix of the S&P and the Bloomberg U.S. Aggregate returned roughly 13.7%. Andrew reiterated that, because Form ADV lacks flow data, the filings cannot allocate AUM growth among market performance, net flows and acquisitions. The report noted the divergence between asset growth and client counts could narrow if client growth accelerates, asset growth slows, or both occur.