RIA M&A Activity Shatters First-Quarter Record
DeVoe & Company reported that Registered Investment Advisor (RIA) mergers and acquisitions (M&A) activity kicked off 2025 with an unprecedented first-quarter record, tallying 75 transactions. This figure surpassed the previous first-quarter high of 68 deals set in 2022, marking the strongest quarterly start in the firm’s 20-year tracking history. The surge builds on 2024’s record-breaking 272 transactions, fueled by a blockbuster fourth quarter with 78 deals, and signals robust momentum in the wealth management space.
The consultancy attributes this boom to several drivers. Growth has emerged as the top motivator for sellers, with RIA leaders increasingly opting to join larger firms for scale, advanced technology, and operational support rather than pursuing organic expansion. Liquidity and succession planning rank as secondary factors.
Private equity (PE) and PE-backed acquirers dominated, accounting for 72% of first-quarter deals, capitalizing on lower interest rates, post-Fed cuts and accessible capital. Non-consolidating RIAs also upped their game, taking 36% of deals in 2024, a trend likely persisting into 2025.
Standout activity included Wealth Enhancement’s $4.3 billion acquisition of Marcum Wealth and Sequoia Financial’s $3.8 billion pickup of Carlson Capital Management. Deals averaged larger sizes, with mega-firms (over $5 billion in assets) comprising 15% of transactions, up from 12% in 2023, while smaller RIAs ($100 million to $500 million in assets) saw declining share.
“RIA M&A is red hot right now,” said David DeVoe, founder and CEO of DeVoe & Company. “Recent research shows that growth is the #1 driver for sellers, which seems counterintuitive. However, more firms are giving up on organic growth and are turning to those that have seemingly solved the organic growth puzzle.”
The data, from DeVoe’s RIA M&A Deal Book, focuses on transactions of more than $100 million in assets, screening out non-traditional RIAs. Despite recession fears, the RIA model’s resilience and PE’s “dry powder” keep M&A humming, with no slowdown in sight as firms chase growth and succession solutions.