Registered Investment Advisor (RIA)

Allocator relevance: Important channel and allocator type—authority varies widely (discretionary vs advisory), so role validation is critical.

Expanded Definition

RIAs manage or advise on client assets. Some operate discretionary portfolios (they allocate capital), while others provide advice and the client decides. RIAs can overlap with MFOs and private wealth platforms. They may also have compliance-driven constraints and product committees that affect what can be allocated.

For allocator targeting, the key is determining whether the RIA is the decision-maker, influencer, or distributor.

How It Works in Practice

RIAs build investment models, run manager selection, and implement portfolios. Alternatives access may be via platforms, feeder vehicles, or direct fund subscriptions depending on client profile and eligibility.

Decision Authority and Governance

Governance is shaped by fiduciary duty and compliance obligations. Authority is defined by client agreements (discretionary vs non-discretionary).

Common Misconceptions

• RIAs are always decision-makers.
• RIA mandates are uniform across clients.
• RIA means “small tickets” (some RIAs manage billions).

Key Takeaways

• Discretion model determines real allocation authority.
• Compliance and product constraints matter.
• Role validation prevents mis-targeting.