Financial Planners & Investment Advisors NAICS 523940

Mar 31, 2026 - Financial Advisor Consolidation Hits Record Levels

• Consolidation in the US financial advisor industry has reached record levels, fueled by private equity and the pursuit of scale. In 2025 alone, hundreds of registered investment adviser (RIA) deals were announced - including 132 transactions totaling $182.7 billion in assets in just the first half of the year, according to Mercer Capital - with full-year deal volume projected to exceed 400 transactions in North America. Per Cerulli Associates, private equity-backed consolidators now control roughly $1.5 trillion in assets under management (AUM) and are driving a growing share of acquisitions. Individual deals are also increasing in size, such as Carlyle’s 2026 investment valuing MAI Capital at $2.8 billion with over $72 billion in AUM. The industry is shifting toward fewer, larger firms with the resources to invest in technology, expand services, and compete more aggressively for high-net-worth clients.
• Private-credit funds marketed to wealthy individuals are seeing an unusual wave of redemptions, creating headaches for investment advisors who sold them as stable income sources. Recent SEC filings show several large funds faced withdrawal requests from about 5% of shareholders at the end of 2025, with one Blue Owl fund seeing roughly 15% redeemed. Returns have slipped as interest rates fell, pushing average total returns at major retail-focused private-credit funds to about 6.2% in the first three quarters of 2025, down from nearly 9% a year earlier. Dividend cuts have followed, catching some clients off guard and reviving questions about whether advisers adequately explained risks, liquidity limits, and fee structures. While assets in business development companies have tripled since 2020 to $450 billion and inflows continue, the pullbacks echo past issues in private real estate and are leading to questions about advisor education and client expectations around “semi-liquid” alternatives.

• JPMorgan Chase is rethinking the traditional “60/40” investment mix (60% stocks and 40% bonds) because both stocks and bonds may no longer reliably balance each other. In its 2026 outlook, the bank suggests that alternative investments, especially private credit (loans made directly to companies outside public markets), should now be considered a core part of a portfolio, not just an optional add-on. Private credit can offer higher returns than public debt and may help protect investors if stocks fall and bonds don’t provide enough stability. JPMorgan also highlights other alternatives, like secondaries (reselling private-market stakes) and opportunistic debt strategies, to add extra resilience. However, critics warn that these investments come with risks, including less liquidity, more complex pricing, and potential difficulty in accessing funds, meaning they aren’t suitable for every investor. Overall, the bank signals a shift toward more flexible and diverse approaches to building long-term portfolios.
• Americans are increasingly turning to AI for personal finance help, using tools to find unclaimed money, manage budgets, and improve financial literacy, according to a recent survey by Intuit Credit Karma. The study found that 65% of US adults who use AI have asked it for financial advice, with adoption particularly strong among younger generations including 82% of Gen Z and Millennials. Many users see positive results: about 80% say following AI advice has improved their finances, whether by helping them save, track spending, or uncover overlooked resources. Risks remain significant, though. More than half (52%) admit that AI-driven guidance has also led them to make financial mistakes, often due to flawed, generic, or misleading responses. Financial experts caution that AI should be treated as a supportive tool rather than a replacement for professional advice, particularly when navigating complex financial decisions.