The RIA market is being reshaped and is no longer defined solely by growth.
Headlines often focus on record M&A activity, the rise of alternatives, or the surge in private equity–backed platforms.
But beneath those narratives, deeper structural forces are transforming how RIAs operate, allocate capital, and influence distribution across the wealth management ecosystem.
Drawing on Dakota’s proprietary tracking of more than 6,400 independent RIAs managing approximately $14.3T in assets, several defining trends are emerging. Together, they point toward a more institutional, centralized, and platform-driven future for the industry.
In this article, we’ll discuss the top structural trends reshaping the RIA market… including the institutionalization of independent firms, the simultaneous rise of fragmentation and asset concentration, the growing dominance of model portfolios, the expansion of alternatives, and the shift from advisor-level selling to platform-level distribution.
Understanding these trends is critical, especially for asset managers, private market sponsors, and distribution teams seeking expansive access to RIA capital.
To access all RIAs in Dakota Marketplace, book a demo!
1. RIAs Are Becoming Institutions
The most important shift in the RIA market is institutionalization.
Independent RIAs are increasingly operating as coordinated allocation platforms rather than collections of autonomous advisors. Investment authority is consolidating within CIO offices, investment committees, and standardized model portfolios.
Historically, product adoption often depended on individual advisor discretion. That model still exists, particularly at smaller firms. But at scale, decision-making is becoming centralized, structured, and governed by formal investment processes.
As firms grow, informal investment frameworks become difficult to sustain. Portfolio construction, manager selection, risk oversight, and due diligence require repeatable systems. The result is a market where larger RIAs progressively resemble traditional institutional allocators in how they evaluate and deploy capital.
Book a demo of Dakota Marketplace to see which RIAs operate with centralized CIO offices and institutional investment frameworks.
2. Fragmentation and Concentration Are Happening at the Same Time
The RIA industry remains fragmented by firm count, but highly concentrated by assets.
As of December 2025:
- 6,421 independent RIAs manage approximately $14.3T in assets.
- Nearly 70% of firms oversee less than $700M.
- Yet roughly 80% of total assets are controlled by the top 10% of firms.
Simultaneously, new firm formation remains strong. In 2025 alone, 511 new RIAs launched with $80.6B in initial AUM, more than double the prior year.
In parallel, Dakota recorded approximately 377 RIA M&A transactions representing $2.5T in acquired assets.
The result is a market that is entrepreneurial at the entry level but progressively institutional at scale. New firms continue to launch, while capital, infrastructure, and governance authority consolidate among large platforms.
Understanding both dynamics is crucial. Growth opportunities exist across the spectrum, but control of capital is becoming progressively centralized.
Book a demo of Dakota Marketplace to see how leading firms map and prioritize the RIA landscape.
3. M&A Is About Control of Allocation, Not Just Scale
Consolidation in the RIA channel is often framed as a succession solution or a scale strategy.
Increasingly, it is about control of allocation.
Large platforms are using acquisitions to deepen investment infrastructure, build centralized governance models, and expand alternatives capabilities. Capability acquisition (including OCIO expertise, alternatives research, portfolio analytics, and risk management) is becoming as important as asset acquisition.
“Mega RIAs” (firms managing more than $10B) are exerting outsized influence. The most active consolidators completed more than 100 transactions in 2025 alone, representing over $880B in assets.
In this environment, the strategic prize is not simply AUM growth. It is control over the point of allocation within the wealth management value chain.
Book a demo of Dakota Marketplace to track active RIA consolidators, platform growth, and acquisition trends.
4. Model Portfolios Are Becoming Core Infrastructure
As investment authority centralizes, model portfolios are emerging as critical operating infrastructure.
Models simplify compliance oversight, accelerate post-M&A integration, and provide consistency across large advisor bases. They reduce behavioral drift, support centralized investment views, and enable scalable portfolio implementation.
For asset managers, this shift carries meaningful implications. Model placement is increasingly the primary gateway to scale within large RIA platforms. As a greater share of client assets flows through centralized portfolios, access to those frameworks becomes more important than individual advisor adoption.
In many cases, distribution advantage is shifting from relationship density to model alignment.
Book a demo of Dakota Marketplace to see how the platform helps your team identify the decision-makers and platform structures that govern model adoption across RIAs.
5. Alternatives Are Moving From Tactical to Core Allocations
Alternatives are no longer niche exposures within the RIA channel.
Dakota estimates that approximately 80% of advisors now allocate to alternatives for accredited investors. Private credit, private equity, and real assets are progressively used to enhance income stability, diversify equity risk, and manage drawdowns.
As alternatives shift from opportunistic to core holdings, operational complexity increases. Firms must support these allocations with formalized manager selection processes, ongoing monitoring, liquidity planning, and client communication frameworks.
In many ways, the growth of alternatives is acting as a forcing function for institutionalization. Firms without centralized governance structures face increasing risk as portfolio complexity rises.
Book a demo of Dakota Marketplace to identify RIAs with active alternatives allocations and institutional review processes.
6. Distribution Is Moving From Advisor Relationships to Platform Alignment
As RIAs institutionalize, distribution dynamics are evolving.
Success is becoming less dependent on persuading individual advisors and more dependent on aligning with CIO offices, investment committees, and model frameworks.
Products are increasingly evaluated based on:
- Their role within portfolio construction
- Transparency and reporting standards
- Operational integration
- Compatibility with centralized governance processes
For asset managers, fintech providers, custodians, and alternatives sponsors, growth in the RIA channel progressively depends on adoption within the $1B+ and $10B+ RIA cohorts.
Understanding platform-level decision-making is now vital.
Book a demo of Dakota Marketplace to see how you can access and engage the RIA market at scale.
The Bigger Picture
The RIA market is concentrating, professionalizing, and institutionalizing.
A smaller number of scaled platforms are controlling a larger share of capital. Model portfolios are becoming default implementation frameworks. Alternatives are embedding themselves into core allocations. Governance standards are rising.
For RIA founders, asset managers, private equity sponsors, and service providers alike, the message is clear:
AUM still matters.
But control of allocation (and alignment with institutional operating models) increasingly determines who wins.
If your team is targeting the RIA channel, Dakota Marketplace provides the expansive access, structured intelligence, and decision-maker visibility required to compete in an institutionalizing market. Book a demo to explore the full RIA landscape!
