October was a record-breaking month for M&A among RIAs, with 39 transactions completed – the highest monthly count recorded by DeVoe & Company.
That tally surpassed the previous record of 33 deals in January 2021 and marked a significant increase from the 21 deals in October 2023, according to the leading consultancy firm.
By November 1, the total transaction count for the year reached 232, representing a 12 percent increase from the 208 deals completed by the same time in 2023.
DeVoe & Company’s RIA Deal Book tracks transactions involving RIAs with at least $100 million in assets under management. Excluding non-traditional RIA deals, such as those involving hedge funds or mutual fund companies,
“Although one shouldn’t read too much into a single month of data, the surge in October’s RIA M&A activity is a conspicuous spike following nearly three years of unremarkable activity,” David DeVoe, founder and CEO of DeVoe & Company, said in a statement revealing the findings.
Since early 2021, quarterly transaction counts have stayed within a range of approximately 65 deals, according to Devoe. But with declining interest rates on the menu, he said PE-backed buyers seem to be starting down a path of accelerated M&A that the firm recently predicted they would.
"It seems evident that these organizations were accelerating their activity in anticipation of the long-awaited rate cuts,” DeVoe said, adding that declining borrowing costs could increase confidence among PE-backed firms.
In Devoe & Co.'s October count, 83 percent of deals were executed by private equity firms or PE-backed companies, marking a substantial departure from the historical trend of about 70 percent.
Nearly half of October’s transactions involved consolidators – firms that grow by acquiring other companies – who play a prominent role in the RIA M&A ecosystem. Leading consolidators Beacon Pointe, Cerity Partners, and Waverly Advisors each completed three acquisitions in the month, an achievement DeVoe described as rare within the industry.
The report indicated that lower capital costs could drive consolidators and private equity buyers to increase their acquisition activity, further reshaping the RIA landscape.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
