Continuing a strong growth trend, the investment adviser industry set records for number of advisers, clients, employees and assets under management in 2024.
That’s according to the 2025 Investment Adviser Industry Snapshot, the 25th annual report issued by the Investment Adviser Association (IAA) and COMPLY, which is based on data from Form ADV Part 1A filings made by SEC-registered investment advisers.
The number of advisers increased 3.1% to 15,870 in 2024, while the number of clients they served rose 6.8% to 68.4 million. Assets under management were up 12.6%, from $128.4 trillion to $144.6 trillion, and the number of non-clerical employees was up 2.6% to 1,032,455.
“This anniversary edition showcases the tremendous growth and dynamism of the investment adviser industry over the past 25 years,” IAA President and CEO Karen Barr said in a news release. “What hasn’t changed are that strong fiduciary principles and small businesses serving individual investors continue to be at the heart of this community.”
5% of advisers managed less than $1 billion in assets, and 87.7% managed less than $5 billion.
Advisers focused on individuals as clients were generally small, with an average of just 8 employees and $393 million in assets under management.
For SEC-registered advisers overall, the median assets under management were $427 million.
Other insights from the report:
The number of offices in homes continued to rise although some advisers reportedly are requesting or requiring a “return to office.”
Assets of the average client who is not high net worth fell between 2017 and 2024. But strong growth in the total assets under management of those clients slightly outpaced the growth in total number of clients.
Reported disciplinary issues related to the SEC and CFTC increased significantly. IAA said this reflected heightened SEC activity, including actions based on technical violations involving off-channel communications.
Private equity funds have seen strong growth, but hedge funds have continued to lead in gross assets. The number of private equity funds increased by 8.1% in 2024, but hedge funds decreased in number slightly. However, hedge fund gross assets were up 14.6% during the year, compared with a 9.2% hike in private equity fund gross assets.
“The 2025 Snapshot provides insights on trends in the industry, such as the growing role of mergers and acquisitions,” COMPLY Chief Regulatory Services Officer Jamila Mayfield said in the news release. “Another trend that I’d highlight is the continued growth in private market investing, with $31.9 trillion in private funds now managed by SEC registered and exempt reporting advisers.”
The full Investment Adviser Industry Snapshot 2025 can be viewed and downloaded from the IAA website or by going to the COMPLY website.
