For most independent advisory firm owners, growth doesn’t stall because of a lack of clients; it’s usually a lack of capacity. You can only grow as far as your team can carry you. Finding experienced advisors is challenging (and expensive), which is why most firms see their growth plateau.
The good news is that a fresh wave of talent enters this profession every year: students, career changers, and advisors leaving wirehouses for more independence. They’re motivated, eager, and looking for the right place to learn and contribute.
The question is, will your firm be the one to give them that shot?
When you get it right, it’s not just filling a seat. It’s a win on every front:
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Your business gains capacity.
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The next generation gains experience and a career path.
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Your clients gain continuity and connection across generations.
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The industry gains a sustainable pipeline of future leaders.
However, to tap into this, many owners need to rethink how they view next-gen advisors.
Breaking the Myths About Next-Gen Advisors
There’s no single profile of an aspiring advisor. Whether coming straight from university programs, pivoting mid-career, or leaving a captive environment, they all have ambition. They are seeking a more personal and entrepreneurial path. Like you once were, they’re passionate about helping people and building something meaningful. They may not come with decades of advisory experience, but they bring perspective, transferable skills, and energy that can add real value to your firm.
What the Next Generation Really Wants
Yes, compensation and equity matter. But they aren’t the only motivators.
FP Transitions, in partnership with the FinServ Foundation, surveyed financial planning students and found:
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73% are entering the profession to make a difference.
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67% want a healthy work-life balance.
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58% are motivated by long-term earning potential.
When we spoke directly with young professionals about what they are looking for in leaders, mentorship, onboarding and cultural fit really rose to the top.
They’re looking for leaders who:
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Teach by example, not just delegate.
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Communicate openly and with patience.
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Build collaborative, not competitive, teams.
This is where mentorship makes the difference. Management enforces outcomes, while mentorship shapes careers. A healthy firm needs both.
They also indicated what they were looking for in an employer.
A clearly articulated firm mission statement and a purpose-driven culture ranked the highest, followed by mentorship, professional growth opportunities, and a competitive compensation and benefits package.
Building a Retention Strategy That Works
Most advisors are entrepreneurs at heart, some as firm builders, others as intrapreneurs. Do you know which of yours are which? Both need support, resources, and a clear path forward. Talk to them. Understand their motivations and long-term goals. Because if your firm doesn’t offer pathways to those aspirations, someone else will have little trouble luring them away.
That doesn’t mean handing out equity on day one. Sometimes it’s as simple as flexible work arrangements. But it always means having a clear, written, and fair path to partnership. The key is understanding what ownership represents to your people and ensuring they see it’s possible inside your business.
And there’s a bottom-line reason to invest in this: FP Transitions’ valuation data (2023–2025, over 2,000 valuations) shows firms between $100M and $1B AUM with multi-owner leadership teams achieve a 48% higher EBITDA multiple than single-owner firms. Sear the following sentence into your mind: bringing next-gen advisors into ownership doesn’t just attract and retain talent; it builds your enterprise value. So, do you want that compounding to start now or years later? Better yet, what would you tell your clients to do?
Why the Industry Needs You to Invest
Every year, talented professionals leave this industry because they can’t find firms willing to invest in them. That’s a loss for them, their potential clients and the profession. And sometimes, they don’t leave entirely; they just become your competitor.
When you commit to becoming a destination for next-gen advisors, you’re not only solving your own capacity challenge—you are:
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Building a multi-generational team that connects with heirs and younger investors.
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Adding to the enterprise value of your firm for you and your partners
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Contributing to a stronger, more diverse, and more sustainable profession.
The capacity crunch won’t solve itself. The future of your firm, and the future of this industry, depends on the choices you make today.
A Lasting Effect
Bringing aspiring advisors into your firm isn’t just a staffing strategy. It’s an opportunity to build something that lasts. They want mentorship, challenges, and a path to grow. In return, they’ll give you the capacity, perspective, and loyalty your business needs to thrive.
If you support them, they’ll support you. And together, you’ll build a business and a profession that lasts for generations.
