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Introduction

Welcome to the Q3 2024 FINTRX Family Office & RIA Data Report, offering a detailed analysis of the global investment advisor and family office sectors, along with the latest investment trends observed throughout the quarter. This report draws from the FINTRX Wealth Management Database, providing an in-depth, data-driven view of the evolving wealth management landscape.

With private wealth vehicles gaining increased prominence, FINTRX enables users to connect with suitable investors, uncover new opportunities and confidently navigate the complex private wealth ecosystem.

The insights and research presented in this report stem from our expansive family office and investment advisor datasets, developed through proprietary research, strategic partnerships and advanced algorithms. Our team of 75+ researchers works tirelessly to maintain data accuracy and relevance, ensuring our clients have access to reliable information to guide their investment strategies.

We hope this report equips you with the insights you need to make informed decisions as you explore the intricacies of private wealth management.

Note From Our Senior VP of Research

Dear Reader,

I’m thrilled to present the Q3 2024 Family Office & RIA Data Report, showcasing the latest advancements and updates to our robust wealth management datasets.

This past quarter has been exceptional for the FINTRX team, as we continue to demonstrate our commitment to providing the most cutting-edge data intelligence in the industry. We are proud of the substantial data enhancements we’ve made and remain focused on continuously elevating the value we deliver to our global FINTRX community.

We greatly value your trust in FINTRX as your go-to resource for family office and investment advisor data. We are deeply grateful for your partnership and remain dedicated to ensuring you have access to the most precise and actionable insights available.

Should you have any questions or wish to discuss this report in greater detail, our team is here to support you. Our primary goal is to empower your success as you navigate the complexities of wealth management data.

Thank you for taking the time to review our latest report.

Warm Regards,

 
Dennis Caulfield, Sr. Vice President of Research

Family Office Data 

Q3 Family Office Platform Updates & Additions

In Q3, our data and research team made 10,820+ updates and additions to our family office dataset, ensuring it remains the most comprehensive and up-to-date resource for ensuring it remains the most comprehensive and up-to-date resource for financial professionals seeking to connect with family offices and leverage actionable insights for successful engagement and investment opportunities.

- New Family Offices Added: 139
- New Family Office Contacts Added: 1,694
- Total Family Office Additions: 2,770+
- Total Family Office Updates: 9,670+
- Tracked Investments Added: 940+
- Family Office Assets Added: $204 Billion

Total Family Office Updates & Additions: 10,820+

Family Office Overview

Single Family Offices vs Multi-Family Offices 

Single family offices (SFOs) are private wealth management entities created by high-net-worth individuals & families to provide completely customized and unique financial & investment services for that family. Multi-family offices (MFOs) provide similar services to a group of clients, using shared resources to streamline costs and provide a more standardized approach to wealth management.

FINTRX added 139 new family offices, most of which (70%) are single family offices.

Assets Under Management (AUM)

Assets under management refers to the total value of assets that a family office manages on behalf of their clients, which can include a wide variety of assets such as stocks, real estate, private equity, hedge funds and other alternatives. AUM can vary greatly amongst family offices, depending on the number of families they serve and their cumulative net worth. Below we display the AUM ranges (in USD) for family offices added in Q3. The majority (33%) of firms added manage anywhere between $100M and $400M. Firms with more than $5B in assets followed at 24%.

Total Family Office Assets Added: $204 Billion

Asset Class Interest

Family offices generally demonstrate a significant interest in investing across various asset classes. Alternative assets provide an efficient means of portfolio diversification and serve as a valuable counterbalance to traditional investments, offering a measure of insulation from economic downturns.

Family offices showed a significant focus on direct investments into private companies, with 84% of firms added in Q3 displaying interest. FINTRX data also shows the continued interest in long-only/traditional investments and hedge funds at 69% and 68% respectively.

Single Family Office Wealth Origin

There is often strong correlation between the industry from which a family office's wealth originates and the industries of their investment activity. This phenomenon can be attributed to the individual or family's unique expertise with that particular industry and a desire for continued involvement in an industry that has driven their past success. 

The most common wealth origins for single family offices added in Q3 were real estate and investment management.

Geographic Breakdown 

Here, we highlight the distribution of the family offices added to the FINTRX platform this quarter. The steady expansion of our family office dataset mirrors the global rise in family offices, further underscoring the platform's continued growth and relevance.

The large majority of family offices are located in North America, accounting for 78% of firms. Europe continues to be the second-most popular region for family offices, accounting for 12% of firms, down 7% from Q2. While numbers of family offices throughout the various global regions are constantly in flux, North America continues to host the overwhelming majority of firms worldwide.

Direct Investmentment Activity

We continue to see family offices harnessing direct investment opportunities, often motivated by a desire for more power over asset allocation decisions and a more hands-on approach with the business operations of the companies in which they invest. Direct investments can be both a challenging and rewarding method of portfolio diversification, and despite the continuation of market turbulence and uncertainty, family offices continue to make such investments, leaning on innovation to drive success. The graph below depicts the top ten sectors in which family offices made direct investments throughout the quarter.

As expected, technology remains the top sector for direct family office investments, accounting for 44% of tracked transactions this quarter, a 1% increase from Q2. This represents approximately 414 transactions into private technology companies. With technological innovation fueling the global economy, we anticipate continued strong private capital investment in emerging tech firms. In addition to technology, family offices maintain a strong interest in sectors like healthcare & life sciences, financial services, consumer discretionary and several others.

New Family Office Direct Investments Tracked: 940

Registered Investment Advisor (RIA) Data

The following data has been gathered through the FINTRX RIA Data Platform & represents the investment advisory landscape for Q3 2024.

FINTRX RIA Data Coverage

FINTRX RIA data covers 40,000 registered entities, 25,000+ RIA aggregators & advisor teams as well as 850,000+ registered reps and broker dealer contacts with in-depth data on investment trends, AUM & accounts, 13F holdings, private funds and so much more.

→ Total Registered Entities: 32,703

→ Total Investment Advisor Reps: 87,727

Assets Under Management (AUM)

The chart below depicts the breakdown of managed assets on a discretionary vs. non-discretionary basis. In Q3, 92% of assets managed were discretionary, allowing advisors to make investment and allocation decisions on behalf of their clients. Only 8% of client assets were managed on a non-discretionary basis.

→ Total AUM (including firms dually registered as RIA & BD): $128.7 Trillion+

→ Total RIA AUM: $120 Trillion+

Firm Size by Assets

This breakdown highlights the size of RIA firms based on their total assets under management. The largest group (28%) consists of firms managing between $1 and $25 million in assets, while 26% manage between $100 million and $500 million.

Account Breakdown

Here we provide a breakdown of discretionary and non-discretionary accounts throughout the quarter. Out of the 73.2 million accounts, 78% are discretionary, with the remaining 22% being non-discretionary. This distribution remains fairly consistent from quarter to quarter.

Total Accounts: 73.2 Million+

Alternative Investments

Incorporating alternatives into client portfolios is a common strategy to diversify portfolios, mitigate risk, and pursue potentially higher returns compared to traditional investments. These alternative assets are typically less correlated with the stock market, which helps reduce vulnerability to market volatility and fluctuations. 

The chart above illustrates the top ten alternative investments utilized in Q3. Real estate continues to be the most popular alternative investment among registered firms, consistently leading in interest quarter after quarter.

Firms Active in Alternatives: 24,785

Geographic Breakdown

Here we explore the advisory landscape by location, highlighting the top states based on both total assets under management and the number of firms. Because these investment advisors are registered with U.S.-based regulatory bodies, it's no surprise that the majority of their headquarters are concentrated in and around major cities across the United States. New York and California stand out as the largest hubs, home to the country's two wealthiest metropolitan areas.

The U.S. accounts for approximately 96% of all registered investment advisor firms and 90% of global investment advisor assets, totaling around $128.7 trillion.

Firm Classifications

The chart to the right highlights the most common classifications of investment advisory firms, with the majority falling under wealth managers, independent wealth advisors and independent RIAs. 

FINTRX employs proprietary algorithms to classify registered firms based on their business activities. Entities may fall under multiple classifications if they provide a variety of services to their clients. Our advanced platform offers users the capability to filter RIAs based on these classifications, enabling more efficient market research and prospecting.

Services Provided

RIA firms, especially larger firms, often provide a wide variety of services to their clients, from portfolio management to financial planning to tax management. Like Q2, the most common service offered was portfolio management for individuals/small businesses at 76%, followed by financial planning at 56% and selection of other advisors at 28%.

Fee Structures

RIAs offer a variety of different fee frameworks based on the services they offer or their target client type. The most common fee structures are some combination of percentage of AUM, fixed rates, or hourly charges. Fees based on AUM usually fall between 0.25% and 2.00%, contingent on the account size.

The most common fee structure among firms in Q3 was a set percentage of managed assets (90%), followed by fixed fees (49%), hourly rates (40%) and performance-based fees (22%). Other fee types may include commissions or subscription-type fees.

Business Activities

RIAs often provide a variety of business services beyond wealth management or asset allocation in order to offer their clients a comprehensive suite of financial services. Insurance brokering continues to be the most common activity, accounting for 44% of these additional operations, and commodity pool operations (CPO) or commodity trading advising (CTA) accounted for 31% of such activities.

Contact & Rep Breakdown

FINTRX offers data on over 850,000 registered representatives & associated contacts active in the investment advisory landscape. Below is an analysis of the new contacts added to FINTRX in Q3, with a breakdown of reps by registration type and gender. While the quarter-over-quarter changes are subtle, we continue to see a steady rise in female professionals in the industry, who made up 27% of reps in both Q2 and Q3.

Total Contacts: 760,905

FINTRX Wealth Management Data Intelligence

FINTRX is a unified data & research platform providing comprehensive data intelligence on 850,000+ financial institution & advisor records designed to help industry professionals identify, access and map the global wealth management ecosystem. FINTRX data intelligence covers over 70,000+ financial entities, including family offices, endowments, foundations, RIAs, broker dealers and advisor wealth teams as well as 750,000+ associated reps & key contacts. Data for every record within FINTRX is aggregated from various public & private sources and regularly verified by an extensive research team to ensure reliable, high-quality data.