The trend continues.

Last year, I wrote about the steady flow of financial advisors (FAs) leaving traditional wirehouse firms for Registered Investment Advisors (RIAs). That trend continues gaining serious momentum in 2025, and for good reason.

I speak with advisors every day who tell me the same thing: they’re able to offer a better experience for their clients within RIAs. There’s more flexibility, fewer conflicts, and far more control over how they grow their business.

Clearly, the move to RIAs is delivering, and it’s being validated by hard market data: RIAs are growing at a compound annual rate of 4% heading into 2028, while stagnant wirehouse channels are projected to shrink by nearly 2% annually over that same period.

What’s changed is that now, private equity (PE) is entering the mix in a big way. Wealth management is becoming irresistible to PE investors, and that capital infusion is about to accelerate this shift even further, creating rare opportunities for sought-after FAs.

Why PE is pouring money into wealth management

Private equity isn’t circling wealth management by accident. It’s doing the math.

This is a business with no products, no manufacturing costs and, mercifully, no tariffs. Just clean, recurring, fee-based revenue. For PE firms chasing stable, scalable returns, it’s about as close to elegant simplicity as it gets.

RIAs run on this predictable-cash-flow-with-minimal-overhead model. They’re lean, efficient and highly investable. Not to mention, the bigger the RIA, the bigger the potential payout. Naturally, PE-backed firms have stars in their eyes, and are doubling down on growth as quickly as possible to maximize their returns.

They’re not just looking to scale their AUM through M&A. They’re looking to recruit the right talent: advisors with a loyal book of business, deep client relationships and the potential to drive exponential value over time.

In other words: they’re looking for you.

What this means for financial advisors

If you’re an advisor sitting inside a wirehouse today, this influx of capital is creating a more competitive and more lucrative environment than we’ve ever seen.

First, let’s talk about deal size. As RIAs grow in value and chase market share, the deals on offer have expanded dramatically. The capital is there, and firms are willing to invest heavily to bring in the right people. I’m seeing larger signing bonuses, more flexible terms and strategic equity packages that give FAs real ownership upside.

But it’s not just about the size of the deal, it’s about how the deal is structured. Many of you will already know the tax advantage here: when structured properly, a significant portion of signing bonuses and incentives that come from RIA transitions qualify as capital gains rather than ordinary income. And depending on your state, that could be a difference of up to 25% in your pocket.

Let that sink in. Same level of effort. Better for your clients. And a materially more efficient financial outcome for you.

Of course, there are other factors to consider. Not every RIA is built the same, not every firm will be the right home for your business, and you still need to evaluate cultural fit, operational support and long-term growth opportunity.

But at a fundamental level, this is the most advisor-friendly market I’ve seen in years.

We’re in a moment where your options are expanding, not narrowing. Where you don’t have to choose between doing right by your clients and doing right by yourself.

Is it actually better for your clients?

In almost every conversation I’ve had with advisors making the move to an RIA, there’s one theme that comes up again and again: client experience.

Many FAs feel they can serve their clients better outside the wirehouse model. They gain more freedom around investment selection, more transparency on fees, fewer compliance hurdles that put process before people.

PE money might be fueling the deals, but underneath it all is a broader shift in how wealth management is being delivered. Clients expect more. Advisors expect more. RIAs are simply rising to meet that demand.

So when you combine a better value proposition for your clients with a more rewarding opportunity for yourself, it’s not hard to see where this is going.

So, what now?

If you’re an FA currently at a wirehouse, now is the time to explore your options. Not in five years. Not when your bonus vests. Now.

Because we’re in a cycle where everything is lining up in your favor:

• The demand for top advisors is high
• The capital to fund big deals is there
• The tax structure makes it more efficient
• And most importantly, clients are ready for something better

The best outcomes don’t come from waiting, they come from timing it right. You’re already in demand. But when you take control of the process, you gain something even more valuable: leverage, alignment and a clear path forward.

Let’s talk

Every advisor’s journey is different. Some of you are ready to move tomorrow, to scorch the earth and bring all your clients into an environment that actually reflects the way you want to serve them. Some of you may want to play a longer game. Wherever you are in the process, I’m here to help you explore what’s possible.

If you want to better understand the deals on the table or which firms are the best fit for your clients and your practice, I’m eager to talk.

Get in touch with me directly at Hanover, and let’s start the conversation.