5-Star RIA Firms – InvestmentNews

 

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Independent and client-focused RIAs outpace wirehouses

When all is said and done, the reasons behind the growing dominance of Registered Investment Advisors (RIAs) are obvious. Clients sign up with advisors because they know they are more likely to get them to their financial targets rather than going it alone.

And the real incentive of deciding to go with an RIA firm is the attractiveness of having a team composed of captains of their own destiny, able to pull the levers they wish and not hindered by the draconian shackles of a wirehouse.

What’s not so obvious and easy to master is how to become a top-performing RIA that stands out in a competitive landscape. This question has been answered by the 5-Star RIA Firms 2025 recognized by InvestmentNews, with only those managing over $1 billion being considered along with only new clients that were delivered organically rather than by acquisition.

Lisa Salvi, managing director of advisor services, business consulting, and education at Schwab Advisor Services, discusses how three elements can separate the top performers:

According to Schwab’s RIA Benchmarking Study, having these in place resulted in RIAs getting 67 percent more new client assets. It’s clear that the leading RIAs are those that know the clients they can serve and can demonstrate what they can offer to those investors.

 

 

 

Comparing the data and figures across the prestigious list of winning firms reveals a series of takeaways.

Quantitative trends

• Median AUM growth across firms was about 21 percent from 2023 to 2024.
   

• Typical (middle 50 percent) AUM growth ranged from about 14.7 percent to 27.6 percent.
   

• Median client growth was about 7.6 percent, with the middle 50 percent of firms growing between 3.2 percent and 17.8 percent.

Correlations

• There is a weak negative correlation (-0.16) between AUM growth and client growth. This suggests that firms growing their AUM the fastest are not necessarily those growing their client base the fastest, implying that some firms are increasing AUM by deepening relationships or acquiring larger clients, rather than simply adding more clients.

Insights

• Client focus: Firms with high client growth often emphasize personalized service, technology-enabled solutions, and advisor enablement.
   

• Adviser headcount: Most firms increased their adviser headcount, but not always in proportion to AUM or client growth, suggesting efficiency gains or different business models.

 

 

A major driver of clients flocking to RIAs is the use of data to understand where they need to be with their finances.

“Retail investors are aware of the need for financial planning and it’s definitely an opportunity for RIAs who are built around that mindset,” says Stephen Caruso, associate direct wealth management at Cerulli Associates. “We’re going to continue to see that shift as more retail investors recognize there’s a lot of uncertainty and different levers in their financial picture. For clients, it’s about, ‘Who can help me navigate that the best way? Who can help pull the right lever at the right time?’”

Outside of acquisitions, IN’s 5-Star RIA Firms 2025 have an average client growth rate of 23 percent for the last 12 months. This is no mean feat, as underlined by Michael Kitces of financial advisory website Kitces.com.

“It’s really hard to do that with referrals, networking, and seminars because you only have so much time to show up for events,” he says. “Building organic marketing successfully is extremely difficult, which is why very few firms are doing it especially well. But when we look at the leading firms that are actually growing organically, they have all found some way to scale a digital marketing effort.”

This is in reference to the innovative ways RIAs are attracting clients. Examples include firms that have scaled up via YouTube video marketing to drive tremendous lead flow success and similarly with Google-driven marketing. Other tactics include leveraging SEO with a particular content marketing focus on white papers that lead to a funnel.

Kitces adds, “When you do a video on YouTube, you can reach 50 people or a million people. The scale of the distribution is basically unlimited.”

Embracing tech goes beyond simply attracting clients – it is a game changer for advisors. The best RIAs are using it to ensure they can do more and have a greater impact.

“One of the key areas that we can see is the ability to build a strong tech stack that’s scalable and supports advisors at the enterprise level. It’s helping advisors better allocate their time and make them more efficient,” says Caruso. “Not all firms can tackle new client growth opportunities, but the leading RIAs are able to build a funnel approach toward marketing and business development, either in a centralized or a decentralized manner through advisors.”

And he adds, “Technology doesn’t mean going as deep as possible but having a well-integrated CRM, having processes and procedures that are technology enabled, and having some workflows that are more optimized can really help RIAs navigate the challenges of spending time in the business versus on the business.”
 

 

Headquarters: Chicago, IL

Key offerings to clients:

• In-house planning, investment selection, and portfolio management
   

• “Math has no opinion” philosophy
   

• CRM platform to develop a high-touch relationship with clients

Thomas Salvino, Performance Wealth’s CEO, emphasizes trust and transparency as being fundamental to operations and is cognizant that the next generation of investors want simple, understandable products that provide value rather than complicated schemes.

“People want a clean product that’s transparent and objective,” he says.
 

 

Performance Wealth believes the firm offers advantages that allow it to have a competitive edge. One is its commitment to keeping fees down and the other is being an open book. It takes pride in doing all their research in-house and clients rest assured that ideas and suggestions come from the team’s advisors alone.

“It’s a coordinated, comprehensive plan as opposed to investments being one thing and then maybe not being tax efficient or not having an estate plan done right,” says Salvino. “We make sure it is all coordinated.”

Organic growth is the major vehicle forward for Performance Wealth. However, golfing days, client dinners, and sporting events are not part of their agenda. The team eschews entertainment, preferring to throw everything into being the best advisors.

“We don’t do client schmoozing. Ultimately, we have great performance and investments and have a great service team – that’s our focus,” adds Salvino.

The mindset behind Performance Wealth’s investment rationale is taking a long-term view, keeping on top of the facts and trying not to be distracted by the talking heads. One particular theme is following the effects of a growing global population and where money can be made in relation to that.

Salvino explains, “That’s why we focus on data over years, not weeks or months. We view it as like raising a child – they grow as you feed them and you think long term, and you’re not benefiting yourself by weighing your kid every day.”

Performance Wealth is a buyer when markets are down, which speaks to the company’s core as it takes advantage of lower prices for non-fundamental reasons. Ensuring it moves with the times and retains a strong core of advisors, the firm runs an annual internship program and has 10 college students with it during summers. The firm has hired all of its team from the scheme.

“We see their work and how they interact with the team as we want proactive, thoughtful, and caring people. We view it as a way to give back, but ultimately, it benefits the firm by finding great talent,” he says.
 

 

Several of the other 5-Star RIA Firms 2025 share insights into what they do to attract clients and deliver results.

Composition Wealth

• As a collective of wealth advisors and industry specialists, the firm offers a distinctive approach to RIA partnerships that resonates with those seeking growth. 
   

• Since Bruce Milam became CEO in 2023, Composition Wealth has doubled in size, growing to $8.6 billion in client assets in just 21 months. Expanded from its West Coast presence adding four new offices, now reaching seven locations nationwide and has strategically built out its capabilities by attracting top-tier talent across investments and financial, estate, tax, and insurance/risk planning. 
   

• Meaningful equity participation opportunities and a model where advisors maintain their entrepreneurial spirit while accessing best-in-class resources, presenting an alternative to the traditional consolidation model.
   

CovingtonAlsina

• Over 95 percent of the firm’s clients have a comprehensive financial plan on file.
   

• The firm works with local professionals to assist clients in plan implementation, to the point of taking prepared estate planning documents to a client’s home or office with a notary to make sure they are executed. 
   

• All advisors hold CFP certification, while some have the CPWA certification, and others have received the Certificate in Blockchain Technology and Digital Assets.
   

True North Advisors

• At the core of the firm’s recent success is its investment platform that aims to consistently deliver institutional quality access to private and alternative investments. While many firms are just beginning to explore this space, True North has been integrating alternative strategies into client portfolios for two decades.
   

• The firm’s proprietary platform allows clients to access a diversified suite of private investments through a single partnership vehicle, fully vetted by a dedicated six-person investment team.
   

• Paired with the firm’s in-house, independent wealth planning team, this all enables them to deliver comprehensive and customized solutions that go far beyond traditional wealth management portfolio construction.
   

Mayflower Advisors

• As a third-generation employee-owned firm, the team is empowered to think like owners, fostering a culture of accountability, creativity, and service that drives long-term success.
   

• A holistic wealth management approach extends well beyond portfolio management as the advisors help clients optimize cash flow, structure debt repayment, and navigate complex tax and estate planning. Whether advising on multigenerational wealth transfers, custom direct indexing, or tax-aware investing, they deliver personalized, forward-thinking strategies. 
   

• A comprehensive, high-touch service model has driven meaningful growth in assets under management, expanded national footprint, and sustained a 98 percent client retention rate.
   

• Mayflower Advisors stands apart by offering the resources of an institutional firm with the intimacy of a boutique practice, consistently exceeding expectations across all client segments. 
   

Sax Wealth Partners

• The firm has achieved both significant inorganic and organic growth, driven by a commitment to sophisticated, holistic financial planning, and white-glove client service.
   

• An integrated approach ensures that every aspect of a client’s financial life is addressed with precision, care, and proactive guidance.
   

• The team has a strategic partnership with one of the top tax and accounting firms to deliver an unmatched depth of expertise, particularly in complex tax and planning matters, providing clients with comprehensive solutions under one roof. This level of integration enables Sax Wealth Partners to exceed industry standards in both service and results.
   

• Meaningful investments in technology enhance the client experience, streamline operations, and deliver real-time insights. This proactive stance in adopting and leveraging advanced tools ensures the firm remains at the forefront of innovation.

 

 

• RIA firms continue to outpace traditional wirehouses by leveraging independence, client-centric models, and the ability to rapidly adapt strategies and technology.
   

• The top-performing RIAs are defined by clarity of purpose as they document their ideal client persona, articulate a compelling value proposition, and execute targeted marketing plans.
   

• Organic growth is the hallmark of elite firms, with the 5-Star RIA cohort achieving an average client growth rate of 23 percent outside of acquisitions, driven by scalable digital marketing and high-touch service.
   

• Technology is a critical differentiator that enables RIAs to streamline operations, enhance client experience, and scale their impact.
   

• Holistic, integrated wealth management – including in-house planning, tax, and estate solutions – sets the top firms apart and drives superior client outcomes.
   

• Sustained success is built on trust, transparency, and talent development, with the leading RIAs investing in advisor education and cultivating a culture of accountability and innovation.

 

 

5-Star RIA Firms

• 1919 Investment Counsel LLC
• Amplius Wealth Advisors
• Bogart Wealth
• Brookstone Capital Management LLC
• Cary Street Partners
• Catalyst Financial Partners
• Chicago Capital LLC
• Composition Wealth
• Credent Wealth Management
• Destiny Wealth Partners
• FAS Wealth Partners
• First Long Island Investors LLC
• Focus Partners Wealth
• Fort Washington Investment Advisors Inc.
• Heritage Financial Services
• Heritage Investors Management Corporation
• Homrich Berg
• Mayflower Advisors
• Prosperity Capital Advisors
• Redhawk Wealth Advisors Inc.
• RWA Wealth Partners LLC
• Sax Wealth Advisors
• Steward Partners
• Traphagen Investment Advisors LLC
• True North Advisors
• Wealthspire Advisors
• Wellesley Asset Management