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The RIA Hunger Games: Why You Don’t Need to Be Big Four to Win
An article last week made waves: “Mallouk Makes Case for an RIA Sector Dominated by a Handful of Big Players.” In it, Peter Mallouk, CEO of Creative Planning, argued that the RIA industry is consolidating toward a “Big Four” future, mega-firms with scale, resources, and pricing power that everyone else can’t touch.
It’s a compelling argument, but if you’re a smaller and/or independent advisor, it can feel more like The Hunger Games: only a few will survive, the rest will be picked off one by one. May the margins be ever in your favor.
The truth? Consolidation is real. Margins are tightening. But, in my opinion, this industry isn’t destined to be a winner-takes-all arena. The future has more paths than just “get huge or die.”
Option 1: Go Mega
Yes, the big firms will keep getting bigger, and PE money is plentiful. Scale brings real advantages such as better pricing, cybersecurity, tech stacks, and marketing reach. For some advisors and clients, that’s the right fit (at least at first), but let’s not pretend it’s the only fit. Big check don’t necessarily mean happiness for you, your staff, or your clients.
Option 2: Stay Boutique (and Proud of It)
Not every advisor wants to scale. Some prefer to run a lifestyle practice or a tightly focused boutique. That’s a valid choice, but it requires intentionality:
- Own a niche. Be the clear choice for a specific type of client.
- Deliver personal touches that don’t scale. Handwritten notes, milestone celebrations, and hospitality the mega-firms can’t possibly replicate.
- Run lean. Keep expenses in line without losing quality.
- Tell your story. Make it clear to clients that staying small is by design, not default.
- Plan succession. Even boutiques need an exit strategy.
Boutique firms thrive when they stop trying to be “small versions of big firms” and instead double down on what makes them different.
Option 3: The Middle Lane — Scale Without Losing Your Soul
For many, the real opportunity is in the middle: joining or building into a larger, but not too large, firm that has infrastructure, stability, and resources, while still leaving room for culture and your identity.
That middle lane offers:
- Infrastructure: compliance, operations, and tech you can’t afford alone.
- Equity growth: ownership in a platform that’s still building.
- Client and staff stability: confidence without losing the personal touch.
- Identity: your voice, your impact, and your culture intact.
This isn’t “sell out to a roll-up.” It’s finding a partner that adds scale without stripping away your soul.
So where do you go from here? And staying put isn’t an option
To-Do’s for Advisors Deciding Their Path
- Pick your lane—boutique, mega, or partner. Drifting is how you get squeezed.
- Differentiate by experience, not products. Investments are commodities; relationships are not.
- Get serious about infrastructure. Build it, rent it, or partner up — ignoring it is no longer an option.
- Invest in your brand. Visibility and voice matter more than ever.
- Plan succession early. Whether you grow, sell, or stay boutique, clean books and documented processes boost value.
The Bottom Line
The RIA world isn’t destined to be a bloodsport where only four firms survive. Yes, scale matters. But so does trust, intimacy, and the ability to make clients feel safe and heard.
The future may belong to mega-firms, but also to boutique specialists who own their lane, and to mid-sized firms that balance scale with culture. For many advisors, the most attractive path forward may be finding a partner in that middle lane. Big enough to be stable, but small enough to let you keep your identity, doesn’t sound too bad to me. That’s not just survival. That’s opportunity.
