According to a new report published by Berkshire Global Advisors, the wealth management M&A market is as healthy as ever.
The firm’s “2024 Wealth Management M&A Report” said last year was a record year for dealmaking, with 269 transactions completed involving RIAs with more than $100 million in assets under management. That barely eclipsed the previous high of 268 in 2023. The report said the fourth quarter of 2024 was particularly active.
“[Eighty-six] transactions were completed during the fourth quarter, a marked increase from the first nine months of the year, when the number of deals each quarter hovered around 60,” the report stated.
Advisor demographics and the demands of high and ultra-high net worth clients were key factors behind the uptick in activity. Equally important was private equity’s continued attraction to the space, which the report says stems from the industry’s “recurring and sticky revenue stream, vast potential for robust M&A activity and accelerated organic growth opportunities.”
One notable development in 2024 was firms acquiring adjacent businesses, such as outsourced chief investment officer (OCIO) and investment consulting firms, tax services practices and trust companies. Berkshire said that’s partly because wealthy clients want more services from their advisors in one place.
The report also predicted that 2025 would be another good year for M&A due to tailwinds created by favorable regulatory and tax policies. Those factors, it said, will likely “boost M&A activity in the wealth management industry during this new year.”
The report was authored by the firm’s wealth management team, which is led by Partner Bomy Hagopian. Berkshire Global Advisors advised on a series of notable wealth management deals last year, including CAPTRUST’s November acquisition of Boston Financial Management, which had nearly $5 billion in assets at the time.
Michael Madden, Contributing Editor and Research Analyst at Wealth Solutions Report, can be reached at michael.madden@wealthsolutionsreport.com.
