Corey Kupfer Weighs In on Accelerating Wirehouse Breakaway Trend

WealthManagement.com recently covered Arax Partners' aggressive push to recruit W-2 advisor teams from national platforms in 2026, and turned to Corey Kupfer for expert analysis on the broader trend of wirehouse breakaways transitioning to independence. In this article, Kupfer shared insights on what this acceleration means for the wealth management industry.

Major RIA Platform Intensifies Breakaway Recruiting

Arax Investment Partners, a $40 billion wealth management platform, announced plans to increase its focus on recruiting W-2 employee teams looking to leave national platforms. CEO Haig Ariyan told WealthManagement.com that the firm sees significant opportunities driven by advisor demand for autonomy, economic incentives, and wealthtech advancements making the RIA space attractive for breakaways.

The New York-based RIA, founded in 2022 by Ariyan and majority owner RedBird Capital Partners, has pursued aggressive growth through both acquisitions and advisor recruiting. Most recently, Arax landed two advisors managing $200 million from Raymond James' Alex. Brown division, recruiting them to its Ashton Thomas Private Wealth division.

"What we do see doing, strategically, is turning the dial up on the recruiting for teams from the national platforms," Ariyan explained to reporter Alex Ortolani. "We've now established ourselves as a very credible partner for financial advisors who want to experience independence as a partner in a boutique."

National Platforms Fight Back with Retention Spending

Despite the bullishness from RIAs like Arax, national platforms are not ceding ground easily. During fourth-quarter earnings calls in early 2026, firms including Raymond James, Stifel, Ameriprise, and the major wirehouses detailed heightened efforts to both retain and recruit advisors. Raymond James specifically broke out its spending on retention and recruiting compensation for the first time, citing a 22% quarter-over-quarter increase to $107 million.

Jim Dilworth, founder and CEO of Dilworth Capital and strategic advisor to investment bank Echelon Partners, told WealthManagement.com that while the competitive battle is intensifying, advisor breakaways are "no longer viewed as a career risk" as they might have been five or more years ago.

"Increasingly, advisors see independence as a strategic path toward ownership, enterprise value creation and greater control over the client experience," Dilworth explained in the article.

Expert Analysis Points to Continued Acceleration

Kupfer, who has extensive experience structuring and negotiating deals for advisors transitioning to independence, provided perspective on where this trend is headed. He told WealthManagement.com that the momentum shows no signs of abating.

"The pace of breakaway teams will not abate, and they will continue to get larger," Kupfer stated. "I would be surprised if we don't see a couple more OpenArc scale teams transitioning to independence. OpenArc has broken the dam."

Kupfer's reference to OpenArc Corporate Advisory points to the high-profile 2025 breakaway from Merrill Lynch that was backed by Charles Schwab and Dynasty Financial Partners. That transition had to endure a lawsuit from the former employer, which OpenArc beat in court before the matter moved to FINRA arbitration. The case has established what many industry observers view as a blueprint for large-scale wirehouse departures.

What Winning Platforms Must Deliver

Dilworth emphasized in the article that successfully attracting breakaway teams requires more than competitive economics. While transition compensation may open the door, he noted that "the real differentiator is a platform's ability to deliver value well beyond the transition."

According to Dilworth's observations through his work with Echelon Partners, winning platforms must credibly demonstrate capabilities in business consulting, sophisticated marketing support, operational leverage, strategic guidance, and an expanding set of adjacent services.

Ariyan confirmed that Arax is well-capitalized to compete in this environment. The firm has reported to Citywire that it continues to consider a minority investment stake to further fuel growth, with its bank advisor, UBS, helping entertain offers, though Ariyan noted "pressure doesn't exist" to move quickly on such a transaction.

Technology Integration Remains Priority

Beyond advisor recruiting, Arax faces the operational challenge of technology integration following rapid inorganic growth. Ariyan told WealthManagement.com that the firm currently offers multiple options for portfolio and performance management, but plans to explore "a solution that can be used broadly across the platform" over the next 12 to 18 months.

This technology consolidation challenge reflects a broader theme in the RIA space as firms balance the flexibility advisors seek with the operational efficiency that drives profitability and scalability.

Kupfer's Track Record in Advisor Transitions

Kupfer brings deep expertise to analysis of the breakaway trend, having structured and negotiated numerous deals for advisors transitioning from wirehouses and national platforms to independence. His law firm specializes in mergers and acquisitions across the financial services sector, including RIA transactions, breakaway advisor formations, and succession planning arrangements.

His commentary in the WealthManagement.com article reflects insights gained from working directly with advisors navigating the legal, operational, and strategic complexities of independence transitions.

This blog post discusses publicly reported industry developments and expert commentary. It does not constitute legal advice and should not be relied upon for legal decision-making. The content reflects analysis based on publicly available information as reported in the cited WealthManagement.com article dated February 6, 2026. Corey Kupfer was not involved in the Arax Partners recruiting initiatives or transactions discussed and his commentary represents general industry analysis rather than specific legal guidance on these matters.