RIA Dealmaking Nears Record as PE Shifts Toward Minority Stakes
Wealth management dealmaking remained near record levels in the third quarter, but the market’s structure is evolving: Private equity investors are supplying capital through minority stakes in large platforms, while strategic acquirers pursue outright purchases and specialized capabilities, according to Echelon Partners.
The investment bank tracked 125 announced transactions, tying the second-highest quarterly total on record and matching the third quarter of 2025. Activity increased from 120 deals in the second quarter but remained below the record 142 announced in this year’s first quarter.
Through September, announced transactions totaled 387, up 12.2% from a year earlier. Echelon raised its full-year forecast to approximately 510 deals from 500, putting the industry on course to surpass 2025’s record of 466. Third-quarter transactions involved firms representing $389 billion in assets.
Private Equity Supplies the Capital
Private equity participated as a direct investor or buyer’s sponsor in 102 transactions, underscoring its financing role. However, PE-backed acquirers’ share of announced deals declined to 73.6%, or 92 transactions, from a record 75.8% in the second quarter.
That distinction reflects different roles: Sponsors finance platforms through minority investments, while those platforms acquire other businesses. The quarter’s three largest transactions, measured by target assets, were minority capital events rather than outright sales.
They included Merchant Investment Management’s 25.9% stake in Ironbark Financial Group, Hamilton Lane’s $270 million continuation vehicle for Savant and Carlyle’s $600 million investment in Prime Capital. The firms represented $66.6 billion, $57 billion and $50 billion in assets, respectively.
Buyers Pursue Niches and Integration
Acquirers increasingly sought differentiated client relationships and services rather than assets alone. Echelon highlighted Vistria Group’s investment in Curi Capital, which serves medical professionals, and Corient’s purchase of Music Row Wealth Management, which serves country music artists. Tax and institutional consulting capabilities also attracted buyers.
Strategic acquirers announced 26 of the quarter’s 37 transactions involving firms with at least $1 billion in assets. All but one were outright acquisitions, including Wealth Enhancement Group’s purchase of RWA Wealth Partners and Corient’s acquisition of Summit Trail Advisors.
The 10 buyers completing at least three deals announced 47 transactions. Their median target size declined to approximately $573 million from $810 million in the second quarter. Echelon cautioned against interpreting that decline as a sustained shift toward smaller sellers.
Five of those buyers’ 12 billion-dollar transactions involved Hightower, including four conversions of affiliated practices into its Signature Wealth channel. Echelon characterized those moves as evidence of a shift from aggregation toward integration.
Announcements Tell Only Part of the Story
“Announced transaction volume is not the same as current M&A activity,” said Dan Seivert, Echelon’s CEO and managing partner. “Announcements are a lagging indicator, and much of what will shape the quarters ahead is already underway.”
Seivert said seller inquiries, new engagements and buyer participation remained strong. Echelon estimates that only about 2.9% of roughly 17,000 registered advisers transact annually, compared with closer to 5% in what it considers a healthy market.
Separately tracked wealth technology transactions reached a record 51, up 27.5% from a year earlier, highlighting consolidation beyond advisory firms. Echelon excludes those transactions from its core wealth management count.
Echelon’s broader tracking includes capital infusions, restructurings and breakaway transactions, helping explain why its totals differ from narrower acquisition measures. Its findings point less to a retreat in consolidation than to changes in how capital enters the industry and how buyers build scale, expertise and integrated platforms.