Looking back over a decade of mergers and acquisitions in the wealth management sector, Fidelity Investments notes in a recent report, “A lot has changed since we started tracking M&A transactions in 2015.”
That is an understatement. In 2015, Fidelity recorded 89 M&A transactions involving registered investment advisors (RIAs), with acquired client assets totaling $130 billion. By 2024, that number had surged to 233 deals, encompassing nearly $670 billion in assets.
While Fidelity does not provide a specific forecast for future deal volume, it identifies several trends suggesting that M&A activity will remain robust. The sustained strength of acquisitions, the firm notes, reflects an industry that, while still young, is maturing as firms scale up in an increasingly competitive environment.
A decade ago, the first wave of strategic acquirers began to take shape, led by Focus Financial and its affiliates, followed closely by United Capital. In 2015 alone, each of these firms executed more than 10 acquisitions. Others that would go on to become major aggregators—such as Captrust, Hightower, and Mariner—were also active, each completing multiple deals that year.
The Role of Advisor Demographics
Advisor demographics continue to be a key driver of M&A activity. The average advisor age has remained around 50 over the past decade. However, in the next 10 years, 37% of advisors—who collectively manage $10.4 trillion, or 40% of industry assets—are expected to retire, according to data from Cerulli Associates. This demographic shift is accelerating succession planning, pushing more advisors to consider selling their firms.
Ten years ago, many advisors saw M&A as a necessary exit strategy. As Fidelity put it at the time, the prevailing sentiment was, “I feel stuck and don’t have an employable succession plan.” Today, however, advisors are increasingly viewing acquisitions as strategic growth opportunities. More are thinking in terms of, “I have opportunities to partner with strategic acquirers and private-equity backers to continue our growth journey.”
Private Equity’s Expanding Influence
Private equity has been a defining force in the past decade of RIA consolidation. Deep-pocketed investors have fueled the rise of firms seeking to establish broad geographic footprints and expand service offerings. While early M&A efforts often centered on acquiring smaller RIAs, today’s acquirers are diversifying by adding adjacent businesses such as tax and accounting firms, outsourced CIO services, and business consulting practices.
A decade ago, many RIA acquisitions were simple “asset grabs.” Now, Fidelity observes, firms are adopting more sophisticated growth strategies.
“Fast forward a few years, and the conversation is more about becoming the dominant geographic or national presence,” Fidelity notes. “Some firms are implementing a hub-and-spoke model, planting a flag in key markets and building out local offices and advisor communities.”
The data underscores this trend: in 2024, 89% of all RIA acquisitions reported by Fidelity involved firms with private-equity backing, a sharp increase from 43% in 2016.
Private equity remains the industry’s preferred capitalization model. Notably, no RIA firm went public in 2024, highlighting the dominance of PE-backed funding structures.
What Lies Ahead?
Looking forward, Fidelity raises questions about whether the industry is approaching a “tipping point” where private equity firms will take even larger stakes in RIAs—potentially setting the stage for a major industry megamerger.
Another key development Fidelity is monitoring is the entrance of new acquirers into the space. The firm is also tracking how RIAs are expanding their service offerings through acquisitions of complementary businesses.
Leadership turnover is another factor that could shape the next decade. Several high-profile RIA leaders have exited in recent years—Fidelity does not name names, but the departures of figures like Rudy Adolf and Ron Carson illustrate the trend. The firm expects more leadership transitions ahead, particularly at strategic acquirers.
“We will be closely observing how many additional strategic acquirer firms undergo leadership transitions and hand their reins to their G2 leaders,” Fidelity notes.
As the wealth management industry matures, RIAs will continue evolving, driven by demographic shifts, private equity influence, and strategic expansion beyond traditional investment management. The next decade promises further consolidation and transformation—though the precise shape of the industry’s future remains to be seen.
