The RIA M&A Landscape: Q&A with Bluespring’s Pradeep Jayaraman 

Dealmaking in the registered investment advisor space was ablaze in October, setting a new monthly record for mergers and acquisitions, attributed in part to reduced capital costs, as reported by DeVoe & Co., an M&A consultant with a 20-year history of monitoring such transactions. 

With 39 deals registered, the volume topped the previous high of 33 in January 2021 and nearly doubled the 21 deals disclosed in October 2023. The year-to-date RIA M&A volume has increased by 12% through November 1, with 232 transactions executed in 2024, up from 208 at this time last year. 

Pradeep Jayaraman, President of Bluespring Wealth Partners, the RIA acquisition arm of Kestra Holdings, shared his thoughts with Connect Money about the current RIA M&A landscape, the types of firms Bluespring seeks to acquire, his view on internal succession, how the M&A pipeline is shaping up for 2025. 

CM: As newly appointed President, what is your leadership philosophy? What is your vision for the firm over the next 12-18 months? 

PJ: My leadership philosophy aligns with the foundation on which Bluespring was initially conceived – to support the entrepreneurially minded, fee-based advisor with a superior operating platform and value-added tools that are unparalleled in the industry. Over the next 12 – 18 months specifically, our Bluespring colleagues will focus on driving continued growth and opportunity for the firm while also supporting our existing firms in elevating their business to new heights. The entrepreneurial spirit really is at the core of everything we do at Bluespring, and I’m looking forward to nurturing that sentiment as we continue to evolve.  

CM: What types of firms are you interested in purchasing as an RIA acquirer? 

PJ: We acquire firms in two ways: as a partner firm or as a merger with an existing partner firm. For partner firms, we want to acquire entrepreneurial, ensemble, scalable businesses with multi-generational talent, a team-oriented culture and a growth mindset. We want to preserve and build on the legacy of these firms.  

For mergers, we are looking at growing practices, retiring advisors or transformational opportunities where there is a real cultural and strategic fit with our partner firms. We are also very focused on largely fee-based businesses that are culturally aligned to our values and share our growth mindset.  

CM: What makes Bluespring Wealth Partners stand out to advisors considering a transition?   

PJ: Over the years, Bluespring has built a unique and differentiated value-add platform. We empower advisor entrepreneurship and growth through our superior operating platform and value-added tools. After joining Bluespring, advisors can remain independent and entrepreneurial while benefiting from the significant operating scale of our wealth management and shared services platform.  

We bring institutionalized access to resources for our firms while preserving and building their identity with their clients. When it comes to transitioning, we want to protect what made the firms so successful in the first place. We call that protecting the firm’s “secret sauce.” Essentially, what that means is we preserve, sustain, and build on the firm’s legacy, all while creating additional leverage in their business and providing opportunities for meaningful growth.  

CM: Your advisors have access to a diverse set of resources. Where do you see opportunities for improvement? 

PJ: Looking beyond currently available resources, one of my main priorities is maturing and scaling our platform and facilitating both organic and inorganic growth for our firms. Bluespring has built such a unique and differentiated platform, with my professional experience, I see a huge opportunity to help our existing partner firms grow inorganically and organically while continuing to build upon our existing shared services within the Kestra ecosystem. That includes technology, marketing, outsourced investment management (where needed), trust and insurance capabilities. 

CM: What are the important characteristics wealth management firms require in a strategic partnership to succeed? 

PJ: Besides putting their client interest first and the overall quality of their advisory service offering, we prioritize firms that have a clear growth mindset that is shared not just by the founder but also by the rest of the firm.  

Firms that aren’t growing risk complacency, stagnation, and potential decline. Part of that growth mindset also means not just growing the business but growing the talent base, attracting, retaining, and developing successive generations, and preserving the legacy of the business that has been built for generations to come.  

CM: How is the M&A pipeline shaping up for 2025? Are we going to see any mega-mergers?  

PJ: 2024 was a fantastic year for Bluespring, and although it’s not over yet, we’re very excited about what’s in store for the firm. And although I cannot disclose specifics, the pipeline for 2025 is shaping up to be one of our biggest years yet.