2026 Research Report

The Succession Crisis Facing
Independent Financial Advisors

An analysis of 23,512 SEC and state-registered advisory firms reveals the scale of an industry-wide transition challenge — and the opportunity it creates for growth-oriented practices.

Published June 2026 · Synseus Intelligence · Data source: sec-by-state/*.json — Form ADV Part 1 Item 5.F.(2)(c) total regulatory AUM · 23,512 active firms analyzed

14%
of headcount-disclosing firms are
boutique practices (1–2 advisors)
157
firms showing active
succession risk signals
1%
succession risk rate among
established RIA firms
15
succession-risk firms in NEW YORK, NY
— the largest metro concentration

Finding 01

New York leads the nation in succession risk — by a wide margin

Firms with 20+ years of operation and two or fewer advisers — the profile most likely to face an unplanned transition — are concentrated in the largest metro markets.NEW YORK, NY alone accounts for 15 succession-risk firms, roughly 4× the next closest market.

A solo practice with 20+ years of operation and no named successor represents the highest-probability acquisition target in any market. These 157 firms collectively manage an estimated $40B–$120B in client assets that will transition in the next decade.
NEW YORK, NY
15
CHICAGO, IL
4
SAN DIEGO, CA
3
ATLANTA, GA
3
NASHVILLE, TN
3
DALLAS, TX
3
HOUSTON, TX
3
MILL VALLEY, CA
2
MENLO PARK, CA
2
PALO ALTO, CA
2
LOS ANGELES, CA
2
HARTFORD, CT
2
BOCA RATON, FL
2
TAMPA, FL
2
ALPHARETTA, GA
2

Finding 02

14% of firms that disclose adviser headcount are boutique practices (1–2 advisors)

The independent advisory industry is dominated by small practices. Of the 16,869 firms that disclose adviser headcount, 2,420 (14%) run on just one or two advisers. The sharpest subset — true solo practices with exactly one adviser — numbers 979, or 4% of all 23,512 registered firms. (About 6,643 firms — 28% of the universe — do not disclose headcount and are excluded from the boutique rate.) This concentration of small firms creates both a succession challenge and an acquisition opportunity at scale.

States with the highest solo-practice (one-adviser) concentration represent the densest markets for succession planning services, acquisition sourcing, and practice management technology adoption.
AR
8%
NV
8%
RI
8%
ID
7%
MT
7%
HI
5%
NH
5%
WY
5%
AL
4%
AZ
4%
MI
4%
MN
4%
NM
4%
NY
4%
OK
4%

Finding 03

Where acquisition-ready practices are concentrated

Practices with $5M–$75M in disclosed regulatory AUM represent the optimal acquisition target for growth-oriented advisors — large enough to be meaningful, small enough to be approachable. 485 firms in this range have disclosed AUM within the dataset. Note: ERA state-registered firms are not required to disclose AUM, so the actual acquisition-ready universe is significantly larger.

NEW YORK, NY
115
SAN FRANCISCO, CA
13
CHICAGO, IL
7
DALLAS, TX
7
BUFFALO, NY
6
LAS VEGAS, NV
5
AUSTIN, TX
5
LOS ANGELES, CA
4
WEST PALM BEACH, FL
4
MIAMI, FL
4
ATLANTA, GA
4
BOSTON, MA
4
WILLIAMSVILLE, NY
4
SARATOGA SPRINGS, NY
4
MEMPHIS, TN
4

Finding 04

AUM distribution: how the industry is sized

The majority of registered advisory firms in this dataset manage over $150M in assets — a reflection that the SEC-registered universe skews toward mid-to-large practices. The $25M–$150M band contains the densest concentration of practices at the inflection point between boutique and institutional scale.

Under $10M
261
$10M – $25M
127
$25M – $75M
514
$75M – $150M
1,839
$150M – $500M
5,742
$500M – $1B
2,437
Over $1B
5,390

Finding 05

New RIA formation has accelerated since 2018

The number of new independent RIA registrations reflects the ongoing breakaway advisor trend — experienced advisors leaving wirehouses and broker-dealers to establish independent practices. Each new registrant represents a practice at the infrastructure formation stage — actively building their technology stack.

2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025

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