March 11, 2026
Louis Diamond quoted
By Andrew Cohen
RIAs have a deal-structure edge over wirehouses or broker-dealers in recruiting advisors looking to sell their business, according to Diamond Consultants CEO Louis Diamond, whose mother, Mindy, founded the advisor recruiting firm. Large RIAs can structure transitions so that most of the compensation is taxed at favorable long-term capital gains rates instead of ordinary income or forgivable loans, which is highly attractive to advisors.
“We’re seeing advisors really say, ‘I have a great team and I’m just looking to cash out,’ or ‘I want to merge my business with an existing RIA,’” says Louis Diamond. “So, they’ll legally sell their business to one of these large, typically private equity-owned RIAs and unlock capital gains tax treatment. Get a bunch of cash, equity, and reap the rewards of independence without having to take the hard step of running their own business. I think that’s going to keep accelerating.”
According to an RIA industry survey conducted last year by consultancy DeVoe & Company, 68% of respondents said a well-defined career path is the top request from next-gen professionals. These career-path prospects are often muddied for non-partnered advisors whose firm is sold to an acquirer, often prompting those advisors to seek other options.
