RIAs Look past AUM to Measure Growth
For years, registered investment advisor growth has been measured by assets under management and advisement, but according to Schwab’s annual RIA survey, more than 40% of firms are now tracking growth by new clients, referrals and expansion of wallet share.
According to the survey of 1,235 RIAs, AUM remains the primary growth metric for 75% of advisors, but 53% also track the number of new clients, 44% track client referrals, and 40% track changes in AUM per client or household. (In 2025, Schwab found that 40% of RIAs were tracking growth by new clients, 27% by AUM per client household, and 15% by number of new client referrals.)
Jalina Kerr, head of advisor experience at Schwab Advisor Services, said the custodian is receiving more requests from RIAs for solutions to drive organic growth, as firms know valuations tied to pure AUM won’t be as strong.
“We’re hearing more organically from advisors that organic growth has been more challenging for them,” she said. “They’re redoubling their efforts for referral sources, centers of influence, and I think they are recognizing they need to work on that.”
Kerr said the survey results reflect that focus, with 70% of advisors expecting referrals to drive growth over the next three years and 60% citing client service.
“If we can’t figure out a way to expand the base of advisors and clients that they’re serving, what happens to the industry because it needs to kind of keep fueling and feeding itself,” she said. “I think advisors are more focused on that than I’ve seen them in a long time, which we’re happy about because we can discuss with them how they are looking to grow.”
Kerr noted new clients emerging from employee stock programs at private companies undergoing liquidity events, including going public or preparing to do so.
“That’s a great way for advisors to source some organic growth, and that’s been really fruitful for them in the markets from what we’ve been seeing,” she said.
To support that growth, 40% of RIAs reported investing in sales and marketing, the most common spend behind only AI integration to improve workflows at 49%. The third-highest spending focus was tech stack upgrades at 32%, followed by new tools and platforms at 30%, and professional development programs at 22%.
Kerr and team also reported that RIAs are keen to offer clients investment options typically reserved for higher-net-worth clients, including alternative investments, access to private markets and pledged asset lines.
“Clients’ needs and expectations are changing, and advisors are expanding what they offer—alternatives, private markets, tax-smart strategies,” Kerr said.
Among firms offering alternative investments, real estate (72%) and private equity (71%) were the most common, and about 50% of advisors offer pledged line assets. In addition, 37% of RIAs currently offer private market investments, and another 13% plan to do so within three years.
On the technology side, only 7% of advisors who took the survey reported using agentic AI in their business. A majority (66%), however, plan to use AI on the client experience in the coming years.
Jon Beatty, head of Schwab Advisor Services, said that despite the changes in the RIA space in areas such as AI, the fiduciary model continues to be a top benefit for industry players, with 90% of advisors agreeing it is helpful in keeping clients’ best interests in mind, 86% saying it helps avoid forcing unwanted products on clients, and 79% saying it helps establish and maintain client trust.
“Whether it’s adopting new technology, investing in AI or expanding new investment capabilities, the fiduciary model guides how RIAs adapt, grow, and succeed,” Beatty said.
The annual survey included 1,235 independent advisors who custody assets with Schwab, representing $497 billion in AUM.
