In Practice November 3, 2026

Advisory Firms Push Beyond Portfolio Management to Drive Growth

As competition intensifies, advisory firms are finding an edge by expanding their planning services.

Reported by

Edward Rueda

For years, growth in the registered investment adviser industry was largely measured by assets under management. However, leading firms are increasingly differentiating themselves through talent development, broader service offerings, technology investments and strategic acquisitions, as they seek more durable growth.

According to DeVoe & Co.’s 2026 Talent & Growth Report, “Mind the (Development) Gap,” released on Monday, RIAs have made notable progress in professionalizing their management practices. Of 132 RIA representatives surveyed between March and May, 59% said their firms had clear, methodical incentive compensation plans—the highest level ever recorded by DeVoe—and 43% reported clearly articulated career paths for advisers.

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Yet many firms continue to face succession and leadership-development concerns. Only 10% of respondents said their firms offered robust training programs for junior advisers, and just 28% believed their firm’s next generation of leaders is highly prepared to assume leadership responsibilities.

Adding Services

The talent issues are emerging as many financial professionals seek to broaden the value they provide to clients.

“People want more from their wealth providers,” says Chayce Horton, associate director of Cerulli Associates’ wealth management practice. “Wealth providers are increasingly investing in the capabilities to provide a comprehensive wealth experience and to serve all parts of a client’s balance sheet across their entire lifespan, even to the next generation.”

RIAs are increasingly seeking ways to distinguish themselves beyond investment management alone, according to Cerulli’s U.S. RIA Marketplace 2026 report. Many are adding tax planning, estate planning, family-office services and other specialized capabilities aimed at deepening client relationships and serving a broader range of financial needs.

For retirement-focused advisers with affluent clients, Horton says estate, philanthropy and wealth-transfer planning are potential directions to broaden their business.

“And if [those planning conversations are] not being had with the plan adviser, then they’re being had with somebody else who will be willing to have those conversations,” Horton says.

Advisory firms are also confronting challenges that accompany scale. Horton says firms often reach a critical inflection point around $5 billion in advised assets, when they begin to transition from being individual practices into being more complex organizations requiring centralized resources and enterprise-level management.

“That $5 billion to $30 billion in wealth program size is where a lot of the growing pains happen the most,” Horton says. “Turning from a practice or an individual into a real enterprise, that includes technology, risk, staffing considerations. A lot of times there [are mergers and acquisitions], so you have to staff to do those activities as well.”

AI, M&A

As firms expand their operational infrastructure, artificial intelligence has become an increasingly important part of their efforts to improve efficiency and free up time for clients. According to Cerulli, 79% of RIAs now use AI in some capacity, mostly for meeting notes and documentation. While only 23% of surveyed RIAs used AI for financial planning, another 32% said they planned to use it in the future.

Horton believes AI is more likely to transform advisory work than eliminate it.

“We find that the most compelling and competitive firms are working alongside AI and AI has yet to replace significant swaths of business,” Horton says. “We do expect it to change how significant swaths of the industry work, but not [seeing advisers] replaced.”

Technology investments are also extending into managed accounts and tax optimization. Horton noted that providers increasingly are seeking to automate tax-management capabilities, allowing advisers to demonstrate value through improved tax efficiency while reducing operational burdens.

At the same time, M&A remains a central component of growth strategies across the industry. According to Echelon Partners’ Q3 2026 Echelon RIA M&A Deal Report, advisory firms announced 125 transactions during the third quarter of 2026, tying for the second-highest quarter total on record. Echelon projects approximately 510 transactions will happen during 2026, which would set a new annual record.

While acquisitions historically have focused on gathering assets, firms increasingly are using deals to acquire specialized expertise, geographic reach and new service capabilities. Horton says advisers evaluating growth opportunities should remain open to partnerships, acquisitions and outsourced solutions rather than attempting to build every capability internally.

“Not every firm is going to build, or rarely any firm, is going to build everything internally,” Horton says.