Group 1 - The registered investment advisor (RIA) sector is expected to see continued private equity investment in 2026, with a focus on creative structures such as minority stakes and recapitalizations [2][3] - RIAs in the mid-market asset range of $1 billion to $10 billion may begin to merge to enhance their valuations and avoid being acquired [2][3] - There is a growing trend of large wirehouse breakaway teams transitioning directly to the RIA space, supported by numerous platforms and backers [2] Group 2 - Private equity firms are anticipated to take new stakes in RIAs and recapitalize existing investments, driven by increasing interest from private equity sponsors [3][4] - Approximately 50 to 60 private equity-backed RIA platforms currently exist, with a similar number of firms seeking entry into the market, indicating strong industry fundamentals [4] - Independent firms are opting to leverage their existing platforms rather than sell to strategic buyers, leading to an increase in capital raises for growth through acquisitions [5] Group 3 - Private equity investors are becoming more comfortable collaborating with peers on RIA capital tables to gain exposure in the sector [5][6] - Successful past investments in wealth management have prompted sponsors to seek additional opportunities that do not overlap with their current holdings, focusing on different client types or geographic areas [6]