RIA M&A Had a Barnburner Third Quarter 

RIA mergers and acquisitions had a record third quarter, reaching the highest levels since the second quarter of 2022, according to a report by Echelon Partners, an investment bank and consulting firm focused on wealth and investment managers. 

The third quarter saw 86 deals, the highest ever finalized in a third quarter and 32% more than the previous quarter. Overall, it was the fourth busiest quarter for mergers and acquisitions in the industry’s history. With 99 recorded transactions, the fourth quarter of 2021 remains the most active. 

According to Echelon, M&A activity this quarter was driven by economic optimism among buyers and sellers as capital market conditions began to improve in early 2023. According to the investment bank, most transactions take an average of nine months to complete. 

The bank expects deal volume to remain high for the rest of the year, estimating 89 deals for the fourth quarter, bringing the total to 315 deals and making 2023 the second most active year for RIA M&A after 2022, which saw 342 deals. 

Nearly 91% of sales were completed by strategic acquirers. However, bidders in this quarter ranged from private equity groups and insurance companies to pension plans and asset managers.   

In the quarter’s top deals, Goldman Sachs was both a buyer and a seller, purchasing a stake in World Insurance Associates through its asset management arm and selling Goldman Sachs Personal Financial Management to Creative Planning. 

The Carlyle Group made a minority investment in CapTrust and Abry Partners- backed Prime Capital Investment Advisors during the third quarter. 

Private equity-backed RIAs have been the most active dealmakers this year, with Wealth Enhancement Group announcing nine deals; and Savant Capital Management and Mercer Advisors both hammering out seven deals each.