During the start of 2024, advisory firms are experiencing positive growth in assets under management (AUM), client relationships and staff size. Today, The Ensemble Practice posted the results of the firm’s bi-yearly Pulse of the Industry report that includes the following highlights:
- Advisory Firms Ride the Market to Record AUM: Firms experienced median increase in assets under management (AUM) of 17.1% in 2023. The S&P was more than helpful, with a 24.2% return for last year.
- Business Development Is Better But Still Slow: Firms had 7.2% growth in the number of client relationships serviced in 2023, which is the fastest growth we have witnessed in the last three years. This rate met the expectations of the largest firms, who were targeting 5% in 2023, but it is still slower than the ambitions expressed for 2024, for which the median growth budget is 10% or more.
- With AUM Increasing, Firms Return to Hiring: As assets grew, firms started to hire more aggressively, and 54% of firms increased their headcount in 2023. A notable 80% of large advisory firms have an opening in their advisory department in the beginning of 2024, with smaller firms following suit in growing their capacity to service clients.
Interested in learning more? You can register to receive the full survey report here: