Investment Adviser Industry Hits Record Highs in 2025

Event summary

  • The number of investment advisers rose to 16,544 in 2025, serving 73.7 million clients, up 7.7% from 2024.
  • Assets under management (AUM) reached $176.8 trillion, a 22.3% increase from $144.6 trillion in 2024.
  • Non-clerical employment in the industry grew 7.5% to 1.1 million employees.
  • Hedge fund assets managed by SEC-registered advisers surged 18.5% in 2025.
  • 92.8% of advisers employed 100 or fewer employees, with 67.4% managing less than $1 billion in assets.

The big picture

The 2026 Investment Adviser Industry Snapshot highlights the sustained growth of the investment advisory sector, driven by increasing demand for fiduciary advice. The record highs in advisers, clients, and AUM reflect strong market conditions and the value individual investors place on professional financial guidance. The dynamic nature of the industry, particularly the growth in private funds and hedge fund assets, underscores the need for advanced regulatory compliance solutions.

What we're watching

Regulatory Compliance
How the increasing complexity of regulatory requirements will impact smaller advisers managing less than $1 billion in assets.
Market Dynamics
Whether the strong growth in hedge fund assets can be sustained amid potential market volatility.
Industry Consolidation
The pace at which smaller advisers may consolidate as the industry continues to grow and regulatory demands increase.