Over the past five years, RIA acquisitions by aggregators backed by private equity have surged, often with the expectation of a major liquidity event such as an IPO. While many RIAs and aggregators are at the negotiation table, private equity firms are a driving force, seeking lucrative exits and rapid growth opportunities. Market conditions in 2023 have been challenging for IPOs, with declining stock prices and weak performance from 2021 listings limiting investor enthusiasm.
Despite this, firms like Dynasty Financial and Canadian-based CI Financial are signaling IPO intentions, with Dynasty filing for $100 million earlier this year and CI planning a U.S. launch next year. Aggregator models differ widely—some buy minority stakes, others majority ownership while keeping advisor equity, and some combine cash with holding company stock. These variations leave investors uncertain about how to value and differentiate these upcoming IPOs…