Celebrating its 25th anniversary, the Investment Adviser Industry Snapshot reports that the industry has continued its strong growth trend, setting record highs for number of advisers, clients, employees, and assets under management in 2024. The Snapshot is a joint effort of the Investment Adviser Association (IAA) and COMPLY.
The number of advisers rose to 15,870 in 2024, while the number of clients served by those advisers increased by 6.8% to 68.4 million. Reflecting strong market conditions, assets under management gained 12.6% from $128.4 trillion to $144.6 trillion, while non-clerical employment grew 2.6% to reach 1,032,455 employees.
“This anniversary edition showcases the tremendous growth and dynamism of the investment adviser industry over the past 25 years,” said IAA President & CEO Karen Barr. “What hasn’t changed are that strong fiduciary principles and small businesses serving individual investors continue to be at the heart of this community.”
By the Numbers:
- 7% of advisers employed 100 or fewer employees
- 68.5% 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
Insights from this year’s report include:
- The number of advisers, clients, and employees, as well as assets under management, reached record highs in 2024.
- The number of offices in private residences continued to rise despite reports that some advisers are encouraging or mandating a “return to office.”
- Assets of the average non-high net worth client declined between 2017 and 2024. Strong growth in the total assets under management of non-high net worth clients slightly outpaced growth in total number of clients.
- There was a significant increase in reported disciplinary issues related to the SEC and CFTC reflecting increased SEC activity, including actions based on technical violations involving off-channel communications.
- The growth in private equity funds has been strong, but hedge funds have maintained their lead in gross assets. The number of private equity funds increased by 8.1% in 2024, while the number of hedge funds decreased slightly. However, hedge fund gross assets increased 14.6% during the year, compared to a 9.2% increase 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,” said COMPLY Chief Regulatory Services Officer Jamila Mayfield. “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 Industry Snapshot is a joint project of the IAA and COMPLY.
