Mercer Capital: RIAs Outpaced S&P in Q3, Led by Alternative Managers

RIAs outperformed the S&P 500 in the third quarter, driven primarily by strong returns from alternative asset managers amid multiple expansion, Mercer Capital reported in its “Q3 2024 Market Update” report.

Alternative asset managers recorded a total return of 19.7%, while larger RIAs with over $250B in AUM saw returns of 15.3%, significantly outperforming the S&P 500's 5.6% gain. Smaller RIAs also posted positive results with an 8.2% total return.

Year-over-year, alternative asset managers saw a return of nearly 65%, benefiting from easing inflation expectations and potential rate cuts. The report noted that all examined groups, including smaller RIAs, experienced growth in both assets under management (AUM) and revenue over the past year, although traditional RIAs faced pressure from fee compression as their AUM growth outpaced revenue gains.

View the full report here:

https://mercercapital.com/riavaluationinsights/ria-market-update-q3-2024/