RIA Reporters Unplugged with Diana Britton and Ian Wenik

In this episode of the DealQuest Podcast, I’m switching things up and turning the mic around on two people who are usually the ones asking the questions. I’m joined by Diana Britton, Managing Editor at WealthManagement.com and host of The Healthy Advisor Podcast, and Ian Wenik, Editor at Citywire RIA and host of This Week in Wealth. These two know the RIA space inside and out—and they’ve both interviewed me (and plenty of other industry leaders) over the years.

This time, I wanted to get their take on what’s really going on in the world of RIAs, M&A, and wealth management. As journalists who talk to all the big players—and plenty of the up-and-comers—they’ve got a bird’s-eye view that most people just don’t have.

We talk about the trends they’re seeing, what stories aren’t getting told, and how their work as reporters gives them a unique perspective on the evolution of this industry. Whether you're a firm leader, a dealmaker, or someone keeping an eye on RIA growth, this conversation is packed with insights you won’t want to miss. Let’s jump in!

SCALING RIA FIRMS RISKS LOSING INDEPENDENCE

As more Registered Investment Advisor (RIA) firms are bought by private equity or insurance companies, they may lose the independence that made them stand out. Originally, these firms offered client-first advice without the pressure to sell specific products. But as they grow, they may start resembling the big wirehouses they once opposed.

Diana Britton points out that many firms buying RIAs already own financial products like investment platforms or insurance, which could pressure advisors to push those products, instead of offering the best solutions for clients.
While growth is exciting, it can come at the cost of the independence and objectivity that originally made these firms appealing.

THE RISKS OF RELYING ON PRIVATE EQUITY'S M&A STRATEGY IN THE RIA SPACE

Private equity firms are using a strategy called multiple arbitrage to drive the M&A boom in the RIA space. They buy large firms at high valuations (14–16x earnings), then use them to acquire smaller firms at lower valuations (8–10x). The goal? Sell everything at an even higher multiple and keep repeating the process.

But Ian Wenik questions how much longer this can last. The real issue is that these big firms need an exit, and the usual routes aren’t looking good. The IPO market is practically shut down, and firms like CI Financial can’t go public without taking a massive hit to valuation. On top of that, there aren’t many buyers left who can afford these huge firms without triggering advisor departures.

The clock is ticking for PE-backed RIAs, especially those acquired between 2018-2020. If they can’t exit at favorable terms, investors risk losses, advisors could face disruption, and the whole model may need to be rethought.

WHY PRIVATE EQUITY LOVES RIAs: THE APPEAL OF STEADY INCOME

Private equity (PE) firms are all about RIAs because they bring in steady, recurring revenue—think of it like the reliable cash flow from software-as-a-service (SaaS) companies. This kind of consistency makes it easier for investors to earn solid returns with less effort, often by borrowing money and making a few smart buys.

For instance, a PE firm can boost an RIA’s value with a little leverage and some small acquisitions, aiming for returns around 20%. Sounds great, right? But there’s a catch: if the firm takes on too much debt or the market takes a downturn, things can get risky. RIAs bring in steady revenue, but investors need to be careful not to overdo it with borrowing.

NEW GROWTH OPPORTUNITIES FOR RIAs: EMERGING PARTNERSHIP MODELS

The RIA market is seeing new models, like minority partnerships, giving advisors more ways to grow their businesses without selling outright. Traditionally, private equity (PE) firms dominated acquisitions, but now, firms like Rise Growth Partners and Constellation are offering minority partnerships. These allow advisors to keep control while gaining capital and support for expansion.

Beyond PE, new buyers are entering the space, including insurance companies like Hub International, NFP, and even sovereign wealth funds. These players offer diverse options for advisors seeking growth rather than just succession planning.

The RIA space is becoming more dynamic, with more ways to partner and grow, giving advisors more flexibility in reaching their business goals.

THE DANGERS OF OVER-LEVERAGING AND MARKET DOWNTURNS

Many companies took on heavy debt during periods of market growth—like PPP loans in 2020 or large preferred equity deals in 2022-2023. These deals promised high returns but often came with debt ratios 10 or 13 times the company's equity.

While these deals may look appealing in a booming market, they’re similar to risky financing used by industries on the verge of bankruptcy. In a strong market, companies can manage debt easily, but when the market shifts, things can go wrong quickly.

When profits drop, businesses might not have enough cash to cover their debt, leading to financial trouble or even bankruptcy. Leverage can drive growth, but companies need to be cautious. Borrowing may seem smart in good times, but businesses must be ready for downturns or risk financial disaster when the market changes.

THE IMPACT OF POLITICAL AND TAX POLICY ON M&A DEALS

Political changes and tax policies can significantly affect M&A activity. Diana Britton highlights how uncertainty around tax policies, like potential increases to long-term capital gains tax rates, can make dealmakers hesitant. For example, during the 2020 U.S. presidential election, Vice President Kamala Harris proposed higher taxes on long-term capital gains, which could have impacted M&A profits.

This uncertainty led many firms to delay or slow down M&A deals while waiting for clarity on tax changes. Once it became clear that some proposed tax increases wouldn’t happen, confidence in deals returned.

Political and tax shifts can influence deal timing and attractiveness. Changes in tax policies may reduce returns or complicate deal structures, so businesses must stay alert to political developments to avoid missed opportunities or unexpected challenges.

BUILD BETTER BUSINESS RELATIONSHIPS THROUGH TRUST AND TRANSPARENCY

Trust and authenticity are essential for strong business relationships. Diana Britton and Ian Wenik emphasize the value of working with people who are open and honest, even when the information shared isn’t directly used. Diana mentions CEOs who are candid in interviews—even off the record—which builds a smoother, more collaborative dynamic.

This kind of transparency applies across business: with clients, teams, or partners, open communication leads to better collaboration and stronger results. When people feel safe to speak honestly, relationships deepen—and that’s key to long-term success and growth.

HOW THE FINANCIAL SERVICES INDUSTRY KEEPS EVOLVING

The financial services world—especially when it comes to mergers and acquisitions—is constantly shifting. Ian Wenik points out a big trend: companies are moving away from being personality-driven, where everything revolves around one standout leader, and leaning more into professional, structured systems that can scale.

That shift has kicked off a real “war for talent,” with firms scrambling to attract (and keep) top advisors. Some of that competition has even spilled into legal battles as firms try to lure each other’s talent.

Diana Britton adds that we’re seeing more and more consolidation among big financial firms. As these companies merge and partner up, the industry’s landscape is getting a serious makeover. She also notes that Independent Broker-Dealers (IBDs) are starting to operate more like Registered Investment Advisors (RIAs), adjusting to new regulations and changing client needs.

THE TALENT STRUGGLE IN WEALTH MANAGEMENT


The wealth management industry is growing fast—but finding and keeping top talent, especially younger advisors and women, is still a big challenge.

Diana Britton, Ian Wenik and I all point out that as firms become more structured and professional, the demand for skilled advisors keeps rising. Yet despite all the diversity programs and women’s conferences, Diana notes that the number of women in the field hasn’t really changed—surprising, given that more women than men are graduating college.

Hosting events isn’t enough. Firms need to actively recruit diverse talent, create inclusive cultures, and genuinely support the next generation. Many traits great advisors need—like empathy and holistic thinking—are often strengths women bring to the table. It’s time to rethink recruiting and close the gap.

THE HIDDEN CHALLENGES BEHIND INDUSTRY GROWTH

Just because the wealth management industry has been booming doesn’t mean every firm is healthy behind the scenes. Ian Wenik pointed out that the long bull market has covered up weak operations and structures in some firms. When the market shifts, those cracks start to show. It’s a wake-up call for firms that haven’t built a solid foundation.

I added that issues like an aging advisor population haven’t been addressed quickly enough. It wasn’t until private equity stepped in that real change started happening.

Growth doesn’t equal a healthy business. Invest in strong leadership, systems, and operations now—before the tide goes out and exposes the flaws. As Ian quoted Warren Buffett: “When the tide goes out, you’ll see who’s been swimming naked.” Build smart. Plan ahead. Stay strong no matter what.

THE DANGER OF MISTAKING A BULL MARKET FOR BRILLIANCE

I once spoke with a billionaire who had gone bankrupt, and when I asked what happened, he said something that stuck with me: “I mistook a bull market for brilliance.” When everything’s going up, it’s easy to believe your strategy is flawless. But often, it's the market doing the heavy lifting—not your systems, leadership, or operations.

The problem? When the tide turns, those hidden cracks show up fast. And if your foundation isn’t strong, the fallout can be brutal.

SECURE YOUR FIRM’S FUTURE WITH A PROACTIVE SUCCESSION PLAN

Diana Britton raised an important point: while industry buzz often centers on M&A deals, most wealth management firms actually handle succession internally—and not always intentionally. Many advisors, especially in smaller firms, prefer to retire gradually rather than sell to a larger company. But without a clear plan in place, this slow exit can create serious issues—like lost clients, decreased firm value, or even closure.

Diana noted that most internal succession still happens through attrition—older advisors retiring or passing away without a transition strategy. And that’s risky. If firms want to protect their future, they need to be proactive: identify and prepare internal successors, create a smooth leadership transition plan, and protect client relationships.

GUIDING CLIENTS THROUGH COMPLEX CHOICES

While wealth management firms now have more options than ever—minority investors, strategic partnerships, piggyback firms, various M&A models—that abundance can actually create confusion.

Clients are often overwhelmed by the choices and struggle to understand what’s truly best for their business. I’ve found myself spending much more time walking clients through the nuances between traditional mergers, breakaway models, and staying within specific ecosystems. The sheer volume of choices can overwhelm even the most seasoned leaders.

UNDERSTAND YOUR CONTRACT TO PROTECT CLIENT RELATIONSHIPS

A common but risky assumption in the industry: that advisors “own” their client relationships and can take all client info with them when leaving a firm. The truth? It’s more complicated. Even in models without non-competes, advisors often face restrictions on what data they can take—like performance reports or client notes—despite technically owning the relationship. This lack of clarity can lead to major legal headaches.

Advisors must fully understand their contracts before making a move. Don’t assume you can walk away with everything. Know the fine print, or risk paying for it later.


Tune in to this episode to hear Diana Britton and Ian Wenik dive into the evolving RIA space, sharing insights on the risks of growth, the potential pitfalls of private equity, and why it’s crucial for firms to maintain their independence and build solid foundations to weather the next market downturn.

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Listen to the Full DealQuest Podcast Episode Here
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FOR MORE ON DIANA BRITTON
WealthManagement.com

FOR MORE ON IAN WENIK
Citywire RIA

FOR MORE ON COREY KUPFER

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Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

Get deal-ready with the DealQuest Podcast with Corey Kupfer, where like-minded entrepreneurs and business leaders converge, share insights and challenges, and success stories. Equip yourself with the tools, resources, and support necessary to navigate the complex yet rewarding world of dealmaking. Dive into the world of deal-driven growth today!