Independent registered investment advisers are reaching $1 billion in assets under management at a faster clip than ever before. This year’s first quarter saw 438 firms grow beyond $500 million in AUM, and 167 of those reach $1 billion in AUM, up from 132 firms and 45 firms, respectively, in the first quarter of 2025, according to a report by wealth intelligence platform Fintrx.
In total, the 438 firms that surpassed at least $500 million in this year’s first quarter had a combined $345.4 billion in AUM, compared with 132 firms with $133.8 billion in AUM in 2025.
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Most of this year’s cohort that surpassed $500 million in AUM have small staff: 21% of the cohort with between $500 million and $1 billion in assets had five or fewer employees, and 74% had between six and 25 employees. The cohort that exceeded $1 billion included 10% with five or fewer employees and 79% with between six and 25 employees.
Overall, the RIAs with fewer AUM tended to be younger firms. Among the $500 million to $1 billion cohort, 31% have been registered with the Securities and Exchange Commission since 2021, compared with 19% of the $1 billion cohort. More than half (60%) of the $1 billion cohort were registered for at least 10 years, compared with 42% of the $500 million cohort.
Geographically, the largest portion of this year’s firms came from California, including 54 firms that surpassed $500 million in AUM, 23 of which surpassed $1 billion in AUM.
Behind California, the states with the most firms with between $500 million and $1 billion in assets were Pennsylvania (16), Florida (15), Texas (13), Ohio (12) and New Jersey (10). As for the $1 billion cohort, the states with the most firms, other than California, were New York and Florida (10), Texas and Wisconsin (8), and Washington (7).
The two cohorts shared several similarities of practice. More than two-thirds (68%) of the $500 million to $1 billion cohort served institutional clients, compared with 80% of the $1 billion cohort. As for adoption of alternative investments, the most common investments were real estate (68% of both cohorts), followed by hedge funds (42% of the $500 million to $1 billion cohort and 41% of the $1 billion cohort) and private equity (25% of the $500 million to $1 billion cohort and 13% of the $1 billion cohort).
Seventy percent of both cohorts used Charles Schwab & Co. Inc. as a custodian. Fidelity Investments was the second-most-used custodian—by 24% of the $500 million to $1 billion cohort and by 26% of the $1 billion cohort—but the report noted that firms can use multiple custodians.
