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.
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