Commission-Free Annuities Drive Elusive Organic Growth: David Lau
The outsized pace of mergers and acquisitions is one of the major trends reshaping the RIA industry, with RIA M&A deals already reaching an annual record in 2025.
A growing stable of RIA firms have achieved eye-watering valuations as they have sold in whole or in part to new partners ranging from major private equity backers interested in minority stakes to strategic acquirers with a history of innovation in wealth management.
Even as big-ticket deals draw headlines, not all firms are finding the M&A success they want. One big reason, according to DPL Financial Partners CEO David Lau, is a lack of organic growth.
RIA valuations are set according to a number of factors, but the prospect for organic growth is probably chief among them, Lau told ThinkAdvisor during a recent interview in New York.
“That’s a big reason why our platform is having the success that it is, because RIAs have come to see our commission-free annuity platform as a key source of organic growth,” Lau said.
He noted that the platform has grown from about $1.4 billion in assets to more than $5 billion in just the past two years.
