RIA Edge 100: Top Advisory Firms Balance Client Growth with Strategic Hiring
Exclusive analysis from WealthManagement's 2026 RIA Edge 100 list.
NEW YORK – The most successful registered investment advisors are scaling their businesses with a keen eye on sustainability, not just speed. According to the newly released 2026 RIA Edge 100 ranking from Wealth Management, the elite cohort has increased its employee count at a rate just 3 percentage points below its client growth over the past five years, signaling a strategic commitment to maintaining service standards amidst expansion.
The data, which tracks firms growing through operational prowess rather than market luck alone, shows the average firm achieved a 9.8% compound annual growth rate (CAGR) in retail clients from 2020 through 2024. Employee growth followed closely at a 7% CAGR for the same period. This near-parallel growth trajectory suggests top firms are consciously investing in human capital to support their burgeoning client rosters, a key differentiator in a competitive landscape.
"Today's leading RIAs are focused on building resilient organizations—strengthening leadership, investing in next-gen talent, and improving operational efficiency—while delivering highly personalized client experiences," said David Armstrong, Editorial Director at Wealth Management.
The operational focus is paying off. The RIA Edge 100 firms posted an average five-year asset CAGR of 16%, significantly outpacing the 12.6% growth rate found among 1,288 RIAs surveyed by Charles Schwab.
Divergent Paths to Success
Beneath the averages, distinct strategic models emerge. Bill Gilbert, co-CEO of Idaho-based The Caprock Group, emphasized a philosophy of "improving the offering" for its ultra-high-net-worth clients. This client-centric approach, which included raising account minimums to manage growth, helped Caprock achieve 16% client growth and 14% employee growth over five years, culminating in a 21% AUM surge.
Other firms charted different courses. St. Louis-based Sunpointe Investments saw explosive client growth exceeding 80% while expanding its team by 21%, leveraging technology and process efficiencies. Conversely, Pennsylvania's Prowell Financial Management strategically shed over 10% of its client base while growing staff by 6%, focusing on deepening relationships with fewer, more substantial clients. Both still saw AUM jump by 39% and 31%, respectively.
Steve Holwerda, Managing Director at Ferguson Wellman Capital Management in Portland, Oregon, highlighted the deliberate use of client minimums—raised from $1 million to $4 million during his tenure—as a "tool to manage growth and keep our client-to-employee ratio."
Common Thread: Certified Expertise
A unifying trait among the listed firms is a high concentration of certified expertise. On average, 34% of advisors at these firms hold the Certified Financial Planner (CFP®) certification, a marker of advanced training and fiduciary commitment that resonates with affluent clients.
Reader Reactions
WealthManagement.com gathered reactions from industry observers:
• Michael Thorne, CFA, Boston: "This data validates that sustainable growth isn't about unchecked client acquisition. The leading firms are thoughtfully balancing scale with service capacity. It's a blueprint for long-term viability in a maturing industry."
• Sarah Chen, Principal at Veritas Consulting, Chicago: "The variance in models is fascinating. Sunpointe's tech-driven efficiency versus Prowell's focus on client curation shows there's no one-size-fits-all formula. Success hinges on executing a clear, client-aligned strategy."
• Robert "Buzz" Dalton, retired broker, Florida: "A 3% gap? That's cutting it too close! This smells like firms squeezing more work out of fewer people to boost partner profits. They talk 'service model,' but this data hints at potential burnout down the line. Clients aren't numbers on a spreadsheet!"
• Priya Sharma, FinTech Analyst, San Francisco: "The consistent investment in technology stacks, as mentioned by leaders like Gilbert, is the unsung hero here. It's the enabler that allows firms to maintain these tight growth ratios without compromising service."
The 2026 RIA Edge 100 list is limited to SEC-registered advisors with at least $500 million in AUM, selected based on public filings. Wealth Management will profile select firms throughout the year to delve deeper into their strategies.