RIA M&A activity surges to second-quarter record

RIA M&A activity in the US reached new heights in the second quarter of 2025, with Echelon Partners reporting 102 transactions – making it the most active second quarter on record and the third-most active quarter overall for the industry.

Amid what's been traditionally considered a slower period for dealmaking, the findings from Echelon Partners' latest RIA M&A report for Q2 2025, released Monday, suggest that 2025 could set a new annual record for RIA transactions.

Strategic acquirers continued to drive the majority of activity, accounting for nearly nine out of every ten deals (87.3%). Several leading buyers have already surpassed their full-year 2024 totals or are on pace to do so, with Merit Financial Advisors leading the way with 11 transactions so far this year up until June by Echelon's reckoning.

Other firms including Carson Wealth, Mariner Wealth Advisors (easily the leader in asset acquisition with over $295 billion snapped up in H1, mostly from its January mega-deal for Cardinal Investment Advisors), and CW Advisors have also exceeded their previous years’ deal counts.

The second quarter was notable for an uptick in large-scale transactions. Seven deals involved sellers with more than $20 billion in assets, and five additional deals surpassed the $10 billion mark. Total assets transacted rose to $828 billion, while the average assets under management per deal (excluding $20 billion-plus transactions) climbed to its second-highest level in five years.

Mirroring findings from Devoe & Company's Q2 2025 M&A report last week, Echelon highlighted private equity as a significant force with 22 direct investments in the first half of the year, matching the pace set in 2024.

The average deal size for financial acquirers increased sharply, even as the number of private equity-backed deals dipped slightly compared to the first quarter. Bain Capital’s $825 million investment for a 9.9% stake in Lincoln Financial, which represents $321 billion in assets, and a $1.6 billion investment in Hub International by funds managed by T. Rowe Price and others, with Hub representing $178 billion in assets, were among the quarter’s most consequential deals..

One trend highlighted in the report is the ongoing demand for large RIAs – those with at least $1 billion in assets – as acquisition targets. According to Echelon's report, “as one firm in this $1 billion to $2 billion size range is acquired, another grows sufficiently to take its place, demonstrating the significant runway that the industry’s current consolidation trend has in front of it.”

Wealth technology deal volume remained steady, with 30 transactions announced in the quarter, keeping the sector on pace for about 130 deals in 2025. Notable activity included NerdWallet’s acquisition of Future You Wealth and Betterment’s purchase of Rowboat Advisors, reflecting continued interest in technology-driven advisory solutions.

Echelon Partners also points to the increasing role of minority investments by private equity firms, with the average assets per minority deal rising more than two-and-a-half times from the previous quarter. “This increase underscores the trend of larger RIAs seeking additional capital to support their growth strategies,” the report notes.