Independent RIAs Accelerate Past $500M and $1B Milestones
The number of independent registered investment advisors (RIAs) crossing the $500 million and $1 billion threshold is moving at a rapid pace.
Findings from private wealth intelligence platform Fintrx show that the number of RIAs progressing past $500 million climbed 211% year-over-year, and the number who have hit $1 billion surged 271%.
The growth is progressing at velocity speed compared to 2025. The number of firms who crossed $500 million was 87 in Q1 2025, compared to 271 in Q1 2026. Similarly, 45 firms reached $1 billion in Q1 2025, compared to 167 organizations in the first quarter of this year.
A larger number of firms have achieved two milestones in crossing both the $500 million and $1 billion mark. While Q1 2025 saw 132 firms hitting both accomplishments, this number skyrocketed to 438 firms in Q1 2026, for a 231% jump in a single year. Together, these firms manage $345.4 billion in assets under management (AUM) today, compared to $133.8 billion a year ago.
The growth is largely concentrated in California, with 31 firms achieving $500 million and 23 crossing $1 billion. Pennsylvania, New Jersey, Missouri, and Virginia ranked in the $500 million top 10, while states like Wisconsin, Washington, and Connecticut scored among the top 10 to achieve $1 billion. New York, Florida, Texas, Ohio, and Illinois were featured prominently in both categories, according to Fintrx.
Most of the firms are also considered small operations, with 95% of the $500 million group and 89% of the $1 billion cohort falling between the micro and small tiers. Fintrx’s research establishes micro businesses as firms with one to five employees, while small firms employ anywhere from six to 25 workers.
These firms also shared the types of customers they serve, with most working with institutional clients. Sixty-eight percent of firms in the $500 million tier serve institutional clients, with this rising to 80% for those in the $1 billion group.
When analyzing custodians for these firms, Charles Schwab was the dominant custodial partner among both tiers, at 70% for the $500 million and $1 billion groups. Fidelity followed suit, at roughly 23% to 26% of each cohort, then LPL Financial and Pershing at less than 5% of each cohort.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news.