Asset and wealth management dealmaking is expected to remain strong through 2026, supported by lower interest rates, steady private equity interest and an intensifying push toward scale, according to a new report.
PwC’s newly released US Deals 2026 outlook highlights that transaction activity accelerated in 2025, with third quarter deal volume up 15% from the second quarter. Wealth management transactions led the advance, rising 27% quarter-over-quarter amid the sector’s continued appeal to financial sponsors and strategic buyers seeking recurring, fee-based revenue and scalable operating models.
Fed rate cuts are helping sustain momentum by reducing financing costs and making leverage more attractive. Both strategic and financial acquirers are actively deploying capital, even as deal timelines remain longer than during the 2021–22 surge. Confidence in consolidation as a driver of growth and margin protection continues to underpin transaction activity.
Optimism around the 12-month deal pipeline is rising thanks to expectations of further Fed easing, despite uncertainty around the number and size of future cuts. Managers continue to pursue acquisitions to scale platforms, add AUM and counter fee pressure in an increasingly competitive environment.
Potential expansion of retail access to private markets is emerging as a key theme with the potential for new channels for private assets within retirement plans, including 401(k)s. In response, firms are developing vehicles designed to integrate private assets into model portfolios and retirement accounts.
Evergreen funds are becoming the preferred structure for long-term retail participation, while active ETFs, interval funds and semi-liquid hybrid products are also gaining traction. These developments are reshaping distribution strategies and influencing partnership and acquisition decisions across the industry.
Rising operating costs, longer fundraising cycles and tighter access to limited partner capital are converging to drive dealmaking.
The report highlights that investors are increasingly favoring diversified managers with exposure to infrastructure, real assets and credit, spurring consolidation, minority stake sales and platform acquisitions aimed at improving fundraising competitiveness and operational efficiency.
Fee pressure remains a persistent challenge and despite AUM growth, margins are being squeezed by higher technology, compliance and distribution costs, particularly for small and mid-sized managers building out retail and wealth platforms. Many firms are turning to strategic partnerships or minority investors to secure growth capital and fund required investments.
Private credit faces a more mixed outlook as higher rates and tighter liquidity test borrowers’ ability to repay loans, while recent negative headlines are increasing scrutiny of underwriting standards, valuation practices and portfolio transparency. At the same time, liquidity constraints are accelerating growth in private asset secondary markets, including GP-led continuation vehicles and LP portfolio sales.
Wealth management M&A remains on a historic run, with 2025 activity expected to surpass 2024 levels.
Private equity capital continues to flow into the sector, drawn by scalable platforms, low capital requirements and exit opportunities, but the consolidation playbook is changing. Leading acquirers are moving beyond simple asset aggregation, focusing instead on full-ownership structures, succession planning and operational integration. Converting affiliated practices to W-2 models and centralizing technology and investment management are increasingly central to transaction strategies.
“Shareholders are demanding higher returns, investors want more choice, and technology spend requires greater capital investment: these pain points will likely spur more AWM dealmaking,” says Greg McGahan, US Financial Services Deals Leader and AWM Deals Leader, PwC.
Looking ahead to 2026, the report notes that consolidation, product innovation and improving financial conditions are expected to keep AWM deal activity resilient as firms seek new sources of growth while protecting profitability.
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