Portfolio Management Revenue Benchmarks
The average portfolio management business in the United States generates $15.3M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 24,024 portfolio management businesses in the U.S., employing 363,095 workers with an average profit margin of 15.0%.
What Does a Portfolio Management Business Actually Do?
Investment advisors managing client assets with discretionary trading authority. Range from independent RIAs (registered investment advisors) to wirehouses (Morgan Stanley, Merrill) and hedge/PE funds.
Who buys: High-net-worth individuals, families, endowments, pension funds, corporations.
Average Revenue
$15.3M
per year
Profit Margin
15.0%
industry average
Revenue / Employee
$1.0M
per year
Total Businesses
24,024
in the US
Est. Owner Income
$2.3M
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
N/A
per year (BLS)
Market Saturation
7.2
firms per 100K people
How Much Do Portfolio Management Charge?
Portfolio managers charge as a percentage of assets under management (AUM), tiered by size.
| Service | Typical range |
|---|---|
Small account ($100K–$500K) | 1.0–1.5% of AUM/year |
Mid account ($500K–$2M) | 0.75–1.0% of AUM/year |
Larger account ($2M–$10M) | 0.5–0.75% of AUM/year |
Institutional / private wealth | 0.25–0.5% of AUM/year |
Hedge fund (2 & 20) | 2% AUM + 20% of profits |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete portfolio management business plan
A 12-section data-backed business plan for a portfolio management business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the portfolio management industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Claims & interest paid | $8 | $1.3M | Insurance claim payouts, interest paid to depositors, or securities transaction costs. |
Wages & benefits | $30 | $4.6M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $11 | $1.7M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $8 | $1.3M | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $27 | $4.2M | Compliance, technology, professional liability, licensing fees. |
Net profit | $15 | $2.3M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
10.96%
openings/year
Closure Rate
8%
closings/year
Net Job Growth
+4.95%
annual
Businesses Closed
4,532
in 2023
Firm Count Trend
Should You Start a Portfolio Management Business?
Startup Cost
$50K – $250K
Break-Even
1 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a portfolio management business do?
- Investment advisors managing client assets with discretionary trading authority. Range from independent RIAs (registered investment advisors) to wirehouses (Morgan Stanley, Merrill) and hedge/PE funds. High-net-worth individuals, families, endowments, pension funds, corporations.
- How much do portfolio management charge?
- Portfolio managers charge as a percentage of assets under management (AUM), tiered by size. See the pricing table above for typical rates by service type.
- How much does the average portfolio management make per year?
- The average portfolio management business generates $15.3M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $2.3M per year at a 15.0% profit margin.
- How many portfolio management businesses are there in the US?
- There are 24,024 portfolio management businesses operating in the United States, employing a total of 363,095 workers.
- How much does it cost to start a portfolio management business?
- Startup costs for a portfolio management business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
Industry Growth & Survival
The portfolio management industry is actively growing — adding jobs at a net rate of 5.0% per year. New establishments are opening faster than existing ones close (11.0% entry vs 8.0% exit), indicating healthy demand.
Approximately 66% of portfolio management businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 4,532 firms in this industry closed permanently.
Industry Trend (2000–2023)
The portfolio management industry has grown 111% since 2000 (from 25,041 to 52,814 firms).
See full historical statistics →Compare Portfolio Management revenue with other industries: