RIA Deal Streak Snaps as Smaller Firms Pause

The registered investment adviser industry’s run of record-breaking dealmaking has ended, but the market is consolidating rather than cooling. Market volatility and rising rates led smaller, founder-led firms to put sales on hold in the third quarter, while well-capitalized consolidators and the largest sellers kept transacting at a record pace, according to DeVoe & Co.’s latest RIA Deal Book.

Advisers announced 77 deals in the third quarter, down 17% from 93 a year earlier and ending seven consecutive record quarters. Still, the 244 deals through September edged past last year’s 241 and topped 191 in 2024.

The market isn’t shrinking but sorting, DeVoe wrote, with firms that have scale, professional management and capital pulling away from the rest.

Mega sellers with more than $5 billion in assets accounted for 41 deals through September, already more than all of 2025, and a record 17% of the market. Smaller sellers made up 36% of deals, their lowest share since DeVoe began tracking the industry.

Consolidators announced 129 deals, or 53% of volume, their highest share since 2021, while RIA buyers made 71 acquisitions. Wealth Enhancement led with 16 deals, followed by Hightower Signature Wealth with 15 and Savant Wealth Management with 10.

Founder David DeVoe pointed to spikes in market volatility, noting that announced deals reflect decisions to sell made six to 18 months earlier. The Federal Reserve’s September rate increase came after most third-quarter deals were already in motion, the firm said, though higher borrowing costs could pressure deal economics.

The fourth quarter needs 79 deals to beat last year’s record of 322. The fourth quarter produced 81 deals in each of the past two years, and DeVoe now projects 320 to 340 deals for 2026.