There were 142 RIA M&A transactions announced in the first quarter of 2026, making it the most active quarter for RIA M&A deals ever, surpassing the 125 announced in both the third quarter of 2025 and the fourth quarter of 2024, according to ECHELON Partners’ RIA M&A Deal Report, released Tuesday.
“The milestone is notable given the quarter’s macroeconomic headwinds and uncertainty in private credit markets,” the report said.
Total transacted assets under management (AUM) reached $1.67 trillion in the first quarter, more than doubling the $805 billion recorded in Q1 2025, ECHELON said.
Average assets per transaction reached $1.8 billion, excluding transactions involving more than $20 billion in AUM, according to ECHELON. That was the highest level since 2021, reflecting the trend that buyers remain well capitalized and are open to paying premiums for at-scale M&A targets, the firm said.
“The findings underscore a continued acceleration in industry consolidation, as firms pursue scale, expand capabilities, and execute increasingly complex, strategic transactions,” the firm said in a news release announcing the report’s findings.
“ECHELON research and analysis of the more than 1,000 deals in the past three years are showing a clear evolution in what defines a successful RIA transaction,” Dan Seivert, CEO and Managing Partner of ECHELON, told WSR by email on Wednesday.
“Valuations and deal structures remain strong. … The real differentiator today, however, is post-close experience.” — Dan Seivert, CEO and Managing Partner, ECHELON Partners
“Valuations and deal structures remain strong, with 70–80% of consideration typically paid at close and most sellers achieving full earnouts,” Seivert said. He pointed out, “The real differentiator today, however, is post-close experience.”
He went on to say, “The highest-performing outcomes are coming from sellers who partner with platforms that materially improve their businesses. That includes offloading non-core functions like compliance, HR, and finance, while gaining institutional-grade capabilities in areas like growth, client acquisition, and practice management. When those elements are in place, we consistently see stronger retention, higher earnout realization, and, just as importantly, significantly higher seller satisfaction.”
That, he said, marks a “notable shift from earlier cycles, where post-close misalignment led to a meaningful number of firms regretting transactions.”
“Today’s buyers are more transparent, more operationally robust, and more focused on long-term partnership, driving better outcomes across the board,” he noted.
“Financially, sellers are also benefiting from multiple layers of value creation,” Seivert continued. “Beyond upfront liquidity, equity rollover structured on a tax-efficient basis has performed exceptionally well, and many firms are outperforming their earnout targets due to a combination of strong markets and enhanced growth support from their partners.”
He added, “What is accelerating the market now is that these outcomes are being validated and shared. As more sellers see peers achieve both financial success and a better day-to-day operating environment, demand for high-quality advisory around transactions is increasing. In a market this competitive and nuanced, selecting the right partner—and running a disciplined, well-positioned process—is critical. That is precisely where experienced advisors who understand both the financial and operational dimensions of these deals can materially impact outcomes.”
Other Q1 Trends
Among the other trends seen in Q1, private equity (PE) involvement continued to shape the competitive landscape, with 71.8% of all transactions including some degree of PE backing, the firm said. Sponsor-backed platforms continued to be the main driver, “complemented by selective direct investments into leading advisory firms,” according to ECHELON.
Private equity (PE) involvement continued to shape the competitive landscape, with 71.8% of all transactions including some degree of PE backing.
Also, ECHELON said wealthtech deals continued to increase, particularly in AI, client analytics and compliance automation, and advisory firms are increasingly acquiring such capabilities as a “competitive necessity rather than a differentiator.”
Forecast For 2026
Looking ahead, ECHELON said it expects elevated M&A activity to continue throughout 2026, with about 475 transactions projected for the full year.
That outlook is supported by continued buyer demand, expanding platform strategies and an expected wave of recapitalizations as PE investment cycles mature, according to ECHELON.
ECHELON’s Q1 findings were similar to what DeVoe & Company recently reported.
DeVoe reported last month that there were 93 RIA M&A transactions announced in the first quarter of 2026, up 24% from 75 in Q1 2025 and tying Q3 2025 as the most active quarter ever and representing the strongest start to a year in RIA M&A history.
ECHELON and DeVoe & Company report different deal numbers, reflecting factors such as differences in methodology and how they define transactions.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
