M&A activity among RIAs is off to a record-breaking start in 2025, setting the stage for what could become the most active year yet for deal-making in the space.
According to DeVoe & Co., 148 RIA transactions were announced between January and June—surpassing the previous first-half peak of 135 deals in 2022 and putting the industry on track to top 2024’s full-year record of 272 deals.
The second quarter saw 73 transactions, a modest dip from 75 in Q1 and down from 81 in Q4 2024—the highest single-quarter total on record. Still, those numbers represent one of the most sustained periods of high-volume deal flow the industry has seen. Prior to this stretch, only one quarter—Q4 2021—had ever crossed the 70-deal threshold.
What stands out is that this surge in M&A is happening against a backdrop that would typically depress activity: choppy equity markets, interest rate uncertainty, persistent inflation, and geopolitical instability. Yet, RIAs continue to find compelling reasons to transact.
Why the Deal Wave Isn’t Slowing
Several structural and strategic forces are driving continued consolidation, despite macro headwinds.
Succession remains a key catalyst. Many advisory firm principals nearing retirement are leveraging M&A as an exit or continuity strategy. Others see partnering with a larger platform as a way to gain scale and deepen client service capabilities.
Meanwhile, competition across the wealth management landscape continues to intensify. As advisory firms seek to expand service offerings, upgrade technology, and invest in talent, the value proposition of joining forces with a well-capitalized partner has become increasingly compelling.
Private equity-backed acquirers—what DeVoe calls “consolidators”—are playing an outsized role in this deal environment. These firms accounted for more than half of all Q2 transactions, underscoring how sponsor capital is shaping the RIA M&A landscape. With funding, infrastructure, and a playbook for integration, consolidators continue to accelerate the pace of roll-ups.
Deals Driven by Uncertainty
Rather than slowing activity, the volatility of the first half of 2025 appears to be reinforcing advisors’ motivation to find long-term partners. In interviews conducted by DeVoe, several leading acquirers cited macro uncertainty as a tailwind for conversations with potential sellers.
“Our strongest teams and most profitable deals consistently come from periods of distress,” said Mariner Wealth Advisors CEO Marty Bicknell. That sentiment is echoed by other consolidators: 77% reported a growing acquisition pipeline in the first half of the year, with the remainder saying their pipeline remained stable.
For sellers, it’s not just about risk mitigation—it’s also about accessing scale. Smaller RIAs increasingly recognize that the compliance burden, cost of technology, and pressure to differentiate are easier to shoulder with the backing of a larger platform.
Bigger Firms Coming to Market
Another notable trend: the average size of sellers is rising. DeVoe only tracks deals involving RIAs with at least $100 million in AUM, but the average transaction size has increased meaningfully over time. In the first half of 2025, the average selling firm managed $1.075 billion—making this the highest year-to-date average since 2021.
That uptick suggests a growing number of mid-sized and larger RIAs are re-evaluating independence in favor of scale, strategic support, or succession options. For buyers, those firms offer more immediate revenue impact and typically bring more institutionalized operations.
Implications for Wealth Managers
For RIAs watching this trend unfold, several takeaways are emerging:
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Valuations remain resilient. Despite macroeconomic pressure, deal multiples have held up, particularly for firms with scale, growth, and a clear client niche.
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Private equity remains aggressive. PE-backed platforms are setting the pace and reshaping the competitive landscape. Whether an RIA plans to sell or stay independent, understanding how these buyers operate is critical.
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Larger firms are in play. The market is no longer dominated by sub-$500M firms seeking exits. RIAs with $1B+ in AUM are entering the deal flow at higher rates, suggesting an expansion of opportunity and competition.
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Strategic planning is key. Even for RIAs not actively considering a sale, keeping a pulse on M&A trends is essential. Valuation dynamics, buyer appetite, and market conditions shift quickly—and being prepared enhances strategic optionality.
As 2025 progresses, the momentum in RIA M&A shows no sign of slowing. Whether the final tally surpasses last year’s record will depend on how economic and market conditions evolve in the back half of the year. But one thing is clear: consolidation remains a dominant force reshaping the future of independent wealth management.
