RIA M&A Activity Remains Robust: Echelon 

Mergers and acquisitions activity in the registered investment advisor industry remained strong in 2023 despite obstacles, according to data from investment bank and transaction advisory firm Echelon Partners. 

In 2023, there were 321 deals, down from 340 deals the previous year, Echelon Partners noted in its RIA M&A Deal Report, which considers RIAs with more than $100 million in assets as well as breakaway advisors with more than $100 million. 

Despite the dip, that was the second-highest number of deals in the RIA market. 

“Against the backdrop of a global slowdown in M&A markets driven by rising interest rates, geopolitical uncertainty, and tightening monetary policies, wealth management deal activity remained high,” the company said. 

The average deal had $1.7 billion in assets last year, which was 2.8% more than in 2022, helped by megadeals involving 116 firms with $1 billion in assets, as well as assets under management levels growing due to a strong stock market, according to Echelon. 

Six strategic acquirers accounted for 23% of the 116 transactions, with Captrust and Creative Planning leading the way with five announced acquisitions each. 

Private equity firms continued to play an important role in RIA acquisitions, accounting for 62% of all declared transactions, according to the report. 

Private equity firms assisted 28 active RIA acquirers, including Captrust, which received an investment from The Carlyle Group, Focus Financial Partners, which was brought private through an investment from CD&R, and Mercer Advisors, which received investments from Altas Capital and Harvest Partners. 

Echelon expects 2024 to be “another robust year” for RIA acquisitions, citing “the highly fragmented market, promising growth prospects, and ample supply of motivated buyers and sellers.”