Most of these employees work in a small business setting. In 2018, 56.8% of advisory firms reported employing 10 individuals or fewer in non-clerical roles, and 87.5% reported employing 50 or fewer individuals. The largest 108 firms employ 52.5% of the non-clerical employees in the RIA channel.
The bulk of RIA clientele, 95%, are individual clients. Of these, the most prevalent type of client is the non-high-net-worth individual—clients with less than $1 million in net worth account for nearly 82% of the total clientele of the RIA channel. High-net-worth individuals account for less than 14% of the total RIA clientele.
In 2018, 4,654 advisors reported advising 36,095 private funds with a total gross asset value of $13.3 trillion, up from 4,574 and $11.5 trillion in 2017. Private equity funds make up 38.5% of the private offerings, while hedge funds account for 31.7%.
The IAA and NRS have conducted the “Evolution Revolution” reports on the registered investment advisor industry since 2001, using data from firms’ SEC Form ADV, Part 1.