Investment Advisor Industry Reached New Heights in 2025
The U.S. investment advisor industry continued its long-running expansion in 2025, reaching record levels for assets under management, client relationships, employment and the number of registered firms, according to the 2026 Investment Adviser Industry Snapshot.
The report found that SEC-registered investment advisors managed $176.8 trillion in assets at the end of 2025, up 22.3% from $144.6 trillion a year earlier. The number of registered advisors rose to a record 16,544, while the number of clients served increased 7.7% to 73.7 million.
Employment growth also remained strong, with non-clerical staffing increasing 7.5% to approximately 1.1 million employees across the industry.
Despite the industry’s massive scale, the report highlights the continued prevalence of smaller firms. Nearly 93% of advisors employed 100 or fewer people, while 67.4% managed less than $1 billion in assets. More than 87% oversaw less than $5 billion in assets.
Advisors focused primarily on individual investors tended to be particularly small, averaging just eight employees and $424 million in assets under management.
Among the report’s key findings was the continued rise in the number of advisor offices located in private residences, even as many firms encouraged employees to return to traditional office environments.
The report also noted significant growth in retirement-related business. The number of pension and profit-sharing plans advised by SEC-registered firms increased at a faster pace than the growth in underlying plan assets.
Alternative investments also posted strong gains. Assets in hedge funds managed by SEC-registered advisors increased 18.5% during 2025, reflecting favorable market conditions and renewed investor demand.
The report further underscored the growing complexity of regulatory compliance, noting that the average SEC-registered advisor provided more than 1,000 separate pieces of information through Form ADV Part 1A and related Schedule D filings.