At a glance
- The study found 35% of advisors industrywide plan to retire within the decade.
- Among independent RIAs, 38% of retiring advisors named an external sale as their intended exit.
- Cerulli's Andrew Blake said a founder's successor search on the open market can sometimes run about five years when owners consider an external sale.
Advisors who plan to retire within a decade control 40% of industry assets, and 29% of those advisors have no defined succession plan, according to Cerulli Associates research presented Thursday at Schwab Impact in Boston. WealthManagement.com reported the findings.
The study found 35% of advisors industrywide plan to retire within the decade. Among independent RIAs, 38% of retiring advisors named an external sale as their intended exit.
Cerulli's Andrew Blake said a founder's successor search on the open market can sometimes run about five years when owners consider an external sale. Stephen Caruso, who leads Cerulli's RIA research, said many larger RIAs have built equity plans while smaller and mid-sized firms struggle to find a viable approach. Cerulli found 45% of $1 billion RIAs now offer employees direct equity ownership.
Retiring advisors hold 40% of assets, and 29% have no plan
Shares of advisors and industry assets, and succession status of retiring advisors
Reported by the RIA desk from WealthManagement.com. Published . Corrections