Ipreo Report Shows Clear Evidence of Major Shift in Advisor Marketplace

Ipreo’s Discovery Data’s ‘2025 A Ten Year View – Retail RIA Channel’ report shows accelerating trend in independently owned retail RIA channel

New York – Sep 9, 2015 – Ipreo, a leading financial services industry provider of data and analytics, today released its Discovery Data ‘2025 A Ten Year View – Retail RIA Channel’ report, displaying evidence of a massive shift in the advisor marketplace and highlighting a doubling of the independently owned retail registered investment adviser (RIA) channel over the next ten years alongside a traditional advisor channel that is losing market share.

“A variety of key industry trends have been revealed or confirmed by the inaugural edition of our Retail Financial Services Industry Almanac, extensive research into more than 3 billion data points,” said Bob Herrmann, Managing Director of Global Asset & Wealth Management at Ipreo. “The most transformative shift the data shows is a migration of advisors away from being employees of major institutions to being owners or partners of small, independent investment advisory firms.”

The move from transaction to advisory, advancements in technology, and changes in regulations have largely been the drivers of the growth in the independently owned retail RIA channel. The Ipreo Discovery Data report shows unabated growth in the channel over the past six years, resulting in an explosion of independently owned retail investment advisory firms, and the acceleration of that growth over the past few years has led Ipreo to recommend to its clients that they adjust strategy and shift resources to be best positioned to benefit from this change.

“The launch of new RIA firms has been increasing as advisors across the industry observe the success other advisors are experiencing,” said Herrmann. “Added to the continued launch of new firms is the maturing of the channel, which is resulting in an increase in the number of advisors and average assets under management per firm.”

The number of advisors age 35 and under has dropped by more than 30% over the past 6 years with this segment now accounting for less than 20% of the overall advisor population.

Discovery Data’s ‘2025 A Ten Year View – Retail RIA Channel’ report is based on its Discovery Data Retail Financial Services Industry Almanac, based on years of extensive research into the most comprehensive historical dataset on every firm in the industry and over 1 million active and inactive reps, accounting for over 3 billion data points. More information on the Almanac can be found at: http://www.discoveryco.com/almanac.html.

About Ipreo

Ipreo is a leading global provider of financial services technology, data and analytics. We support all participants in the capital-raising process including banks, public and private companies, institutional and individual investors, as well as research, asset management and wealth management firms. Our unique, cross-asset class solutions equip our clients with the information and tools they need for more effective decision-making and a more efficient workflow. Ipreo is private-equity held by Blackstone and Goldman Sachs Merchant Banking Division, and has more than 800 employees serving clients in every major financial hub around the world.

Discovery Data offers a single consolidated view of the financial services industry, including 39,000 firms and over 2 million professionals. Access to our data is provided via an annual subscription to one or more web applications including a state-of-the-art online system, programming interface (API), and secure HTTPS and FTP sites. In addition, we are the industry leader in data hygiene services and the foremost authority in data-driven market insight. For more information, visit www.discoveryco.com.

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  • For Ipreo
  • Kate McKay
  • Managing Director, Global Marketing & Communications
  • 212.849.5060
  • kate.mckay@ipreo.com