In the intricate world of investment management, making informed decisions is everything. One of the most powerful tools for achieving that transparency is Form ADV — the filing that registered investment advisers (RIAs) must submit to the U.S. Securities and Exchange Commission (SEC).
For most, Form ADV is viewed through the lens of compliance. But for investment sales professionals, it’s a source of competitive intelligence.
Each filing reveals how an adviser runs their business… from client segments and assets under management (AUM) to custodians, private funds, ownership, and more.
When analyzed strategically, this data helps fundraisers identify the right partners, assess opportunities, and strengthen relationships.
In this article, we’ll walk through how to analyze Form ADV data effectively, highlight the key metrics that matter, and show how Dakota Marketplace makes this process faster, simpler, and more insightful.
Key Metrics to Look for in Form ADV
When analyzing Form ADV, certain key metrics should be the focus to ensure comprehensive evaluation:
- Assets Under Management (AUM): This indicates the total value of assets that an adviser manages. A higher AUM can signify a well-established adviser with significant market trust.
- Client Base: Understanding the types of clients an adviser serves (individuals, institutions, high-net-worth individuals) helps assess if the adviser aligns with your target market.
- Fee Structures: Detailed information on how advisers charge their clients (percentage of AUM, fixed fees, hourly rates) is crucial for evaluating the cost-effectiveness and competitiveness of their services.
- Private Funds: If the RIA is running any internal private funds or fund of funds with coverage including the name of the fund, service providers, fund size and more.
- Custodians: View an RIAs custodian, the amount of assets being held with them and more.
How to Interpret Different Sections of Form ADV
Form ADV is divided into multiple parts, each providing specific information:
- Part 1: This section focuses on the adviser's business, ownership, clients, employees, business practices, affiliations, and disciplinary events. It provides a high-level overview and is essential for initial vetting.
- Part 2A: This section offers a narrative description of the adviser's services, fees, business practices, and conflicts of interest. It's crucial for understanding the adviser's operational details and client engagement strategies.
- Part 2B: It provides information about the educational background, business experience, and disciplinary history of the individuals who provide advisory services. This section is vital for assessing the qualifications and reliability of key personnel.
- Part 3: This part summarizes key information about the adviser in a concise format, helping clients make informed decisions.
Using Form ADV Data for Due Diligence
Due diligence is a critical process in investment management, and Form ADV data plays a pivotal role:
- Comprehensive Review: Start by thoroughly reviewing all parts of Form ADV. Pay special attention to the adviser's disciplinary history and any disclosed conflicts of interest.
- Comparative Analysis: Compare the Form ADV data of multiple advisers to identify the most suitable partners. Look for consistencies and discrepancies in their disclosures.
- Risk Assessment: Evaluate potential risks by examining the adviser's regulatory compliance history and their approach to managing conflicts of interest.
- Client Suitability: Ensure that the adviser’s client base and services align with your strategic goals and client needs.
Dakota Marketplace – Form ADV Database
Dakota Marketplace makes it simple to turn Form ADV filings into actionable insights. Instead of clicking through the IAPD website line by line, marketplace brings all of the information together in one clean, searchable platform. For every RIA, you can view:
- Regulatory AUM – see the full picture of assets under management.
- Client base breakdown – including AUM tied to each client type.
- Advisory services – quickly filter firms by services offered, such as those providing solutions to outside managers.
- Wrap fee programs – identify which advisers participate.
- Advisory business details – including marketing practices, SMA business, and custody arrangements.
- Custodians – view all custodial relationships.
- Private funds – access details on any private funds the adviser manages.
- Ownership – review firm owners and organizational structure.
This information is seamlessly integrated with Dakota’s allocator profiles, contact information, and fund data, giving investment sales teams the ability to not just see the raw filing, but understand who allocates capital, how much, and through what channels. Pre-built customer reports make it easy to get started, while advanced filters let you drill into exactly the segment of the RIA landscape that matters most to you.
By embedding Form ADV directly into Dakota Marketplace, we’ve transformed what was once just a regulatory filing into a powerful resource for fundraising and distribution teams.
To explore more on Form ADV data in Dakota Marketplace, book a demo!
